What Is Dollar Cost Averaging?

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What Is Dollar Cost Averaging?

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Dollar Cost Average (DCA) is a strategy that involves buying digital assets using a fixed amount of money at regular intervals, no matter the price.

It helps buyers “average out” the price of volatile assets.

DCA means buyers don’t have to figure out the exact best time to purchase assets.

It is practical for those seeking to build a portfolio over time without trying to “time the market”.

To get a better sense of how dollar cost averaging can be useful, think of how you might water a plant

It’s best to do it in small increments over time. If you water the plant too much all at once, you risk flooding it.

Many buyers use DCA to take the emotion out of purchasing digital assets.

They can unglue their eyes from the candlesticks and find peace knowing they’ll have a set strategy in place.

Beginner and intermediate users alike can benefit from DCA. 

It can be applied during both rising and declining markets for big and small purchases.

What does dollar cost averaging help you do?

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