What Is Dollar-Cost Averaging (DCA) In Crypto?
Adekunle Joshua
Dollar-Cost Averaging (DCA) is an investment strategy that involves regularly investing a fixed amount of money into an asset, regardless of its price fluctuations
With DCA, you don't have to time the market or make large lump-sum investments
Instead, you consistently invest a fixed amount at regular intervals, such as weekly or monthly
DCA allows you to accumulate cryptocurrency over time, regardless of market conditions
When prices are high, your fixed investment buys fewer tokens, and when prices are low, you acquire more
By spreading out your investments, DCA helps reduce the impact of market volatility
It eliminates the need to make emotional decisions based on short-term price movements
DCA allows you to mitigate the risk of buying at a single high point or missing out on opportunities during price dips.