Dollar-cost averaging is investing a fixed amount at regular intervals regardless of price, which smooths out your average entry cost over time.
Dollar-cost averaging, or DCA, is a strategy of investing a fixed dollar amount on a regular schedule, such as $100 every week, no matter what the price is doing.
Because you buy more units when prices are low and fewer when prices are high, your average cost tends to smooth out over time. This removes the pressure of trying to time the market perfectly.
DCA is popular because it is simple, disciplined, and reduces the emotional temptation to buy at peaks or panic-sell at lows. It works especially well for volatile assets like cryptocurrencies.
The trade-off is that in a steadily rising market, investing a lump sum early can outperform DCA. The strategy is more about consistency and risk management than maximising returns.
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