DCA (Dollar-Cost Averaging) is an investment strategy, but many people only have a superficial understanding of it. Simply put, DCA means you don't invest a large sum of money all at once, but instead make multiple purchases of an asset at the same amount and regular intervals. It may sound boring, but this simple method can help you stay rational in the volatile cryptocurrency market.
The core logic of this strategy is straightforward: buy more when prices fall, buy less when prices rise. As a result, your average cost of purchasing the asset is lowered. However—this is important—DCA is not a万能. It has clear advantages, but also disadvantages that require careful consideration.
The essence of DCA: Why this strategy makes trading simpler
If you're new to the cryptocurrency market, you might be wondering "how to time the market"