What is Dollar Cost Averaging (DCA)?
Dollar Cost Averaging (DCA) is an investment strategy where you buy a fixed amount of an asset (like Bitcoin) at regular intervals, regardless of price.
The goal is to reduce the impact of volatility and avoid the mistake of trying to time the market. With DCA, you buy more Bitcoin when the price is low and less when it is high, resulting in an average purchase price that balances out over time.
Why DCA into Bitcoin?
- Reduces Stress: You don't need to watch charts all day.
- Discipline: Creates the habit of saving and investing regularly.
- Mitigates Risk: Avoids buying everything at market peak.
- Long Term Focus: Takes advantage of Bitcoin's long-term appreciation potential.