Dollar-Cost Averaging (DCA)

DCA is an investment strategy where investors divide their capital into periodic purchases of an asset, aiming to achieve a favorable average entry price over time. DCA is often regarded as a prudent investment approach in the cryptocurrency industry due to its inherent volatility. By purchasing at regular intervals regardless of price fluctuations, DCA helps investors avoid making poorly-timed lump sum investments. For instance, an investor might choose to buy $100 worth of Bitcoin (BTC) every week for a year instead of making one large BTC purchase for $5,200.