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What Is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging means buying a fixed amount at regular intervals. See how it works and its limits.
The idea
Instead of investing a lump sum at one moment, you invest a fixed amount on a schedule, for example every week. When the price is low you buy more units, and when it is high you buy fewer.
Why people use it
DCA reduces the risk of buying everything just before a drop and removes the pressure of timing the market. It also builds a habit of consistent investing.
Limits
DCA does not guarantee a profit or protect against a long decline. If the asset keeps falling, you keep buying into a loss. Fees on frequent small purchases can also add up.
Getting started
Choose an amount you can comfortably invest regularly, a schedule, and assets you have researched. Review the plan periodically rather than reacting to every price move.
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Educational content only, not financial advice. Crypto assets carry a high risk of loss.
Keep learning
Look up unfamiliar words in the crypto glossary or browse coin markets.