Dollar-Cost Averaging (DCA) is an investment strategy where a fixed amount of money is invested in an asset at regular intervals, regardless of the price. This approach reduces the impact of market volatility by spreading out purchases over time. It’s commonly used for long-term crypto accumulationa and to lower stress.
Example:
An investor buys $200 worth of Bitcoin every week for a year. Sometimes they buy when the price is high, other times when it’s low. Over time, the average purchase price smooths out compared to trying to time the market.