What is DCA In Crypto?

1 year ago

DCA stands for "Dollar Cost Averaging." It is an investment strategy in which an investor divides their total investment amount into equal parts and invests those parts at regular intervals, regardless of the price of the asset. In the context of cryptocurrency, this means buying a fixed dollar amount of a particular cryptocurrency at regular intervals (e.g. weekly or monthly) rather than trying to time the market and buy at a specific price point. The idea behind DCA is that by averaging in your purchases over time, you are less likely to buy at the top of the market and more likely to benefit from market fluctuations.

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