Dollar-Cost Averaging (DCA)
An investment strategy where a fixed dollar amount of a particular asset is bought on a regular schedule, regardless of the asset's price.
An investment strategy where a fixed dollar amount of a particular asset is bought on a regular schedule, regardless of the asset's price.
Dollar-cost averaging (DCA) is an investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset to reduce the impact of volatility on the overall purchase. This can be a viable strategy for investing in cryptocurrencies, which are known for their price volatility.
- Buying a fixed amount of Bitcoin every month, regardless of the price, to build up a position over time.
- Some exchanges offer the option to make a fixed token amount purchase on the same day of every month, so you could, for example, allocate $100 to purchase the token $ALEPH, on the 15th day of every month.
