Definition
An investment strategy where a fixed dollar amount is invested at regular intervals regardless of price. This reduces the impact of volatility by averaging your purchase price over time.
Why It Matters
DCA removes the pressure of timing the market perfectly. It's one of the most recommended strategies for long-term crypto investors because it reduces emotional decision-making.
Example
An investor buys $100 of Bitcoin every week regardless of price. When the price drops to $30,000, they buy more. When it rises to $60,000, they buy less per dollar invested.
Related Terms
Bitcoin
Bear Market
Bull Market
Investing