🏆 THE ESSENCE OF DCA METHOD (DOLLAR-COST AVERAGING)
✍️ Definition
✔️ DCA is an investment strategy where the investor divides the capital and buys assets (e.g., Bitcoin, ETH...) at fixed intervals (daily, weekly, or monthly), regardless of whether the price is high or low at that time.
✍️ Core essence
✔️ Average purchase price
✔️ When the price is high → fewer coins can be bought.
✔️ When the price is low → more coins can be bought.
✔️ Over time, the average cost will be “averaged out,” reducing the risk of buying at the peak.
✔️ Reduces psychological impact
✔️ No need to “guess the bottom – peak” (which is nearly impossible for newcomers).
✔️ Avoids FOMO when the price rises or panic when the price falls.
✔️ Invest with long-term discipline
✔️ Focus on the asset's growth value over time rather than short-term fluctuations.
✔️ Very suitable for assets with long-term upward trends (like BTC, ETH, BNB).
✍️ Advantages
✔️ Simple, easy to apply for beginners.
✔️ Limits short-term volatility risk.
✔️ Builds disciplined investment habits.
✍️ Disadvantages
✔️ Not optimal if the market rises straight (all-in early would earn more).
✔️ Requires patience; results are only significant in the medium/long term.
👉 In summary, the essence of DCA is to turn the “uncertainty of the market” into an advantage by buying regularly, allowing the asset to gradually accumulate and achieve a reasonable average purchase price, thereby benefiting when the market grows long-term.
