#BitcoinWithTariffs What is DCA and it's benefits? a beginner guide.
DCA stands for Dollar-Cost Averaging—a popular investing strategy in crypto where you invest a fixed amount of money at regular intervals, regardless of the asset's price.
How DCA Works in #Crypto :
Instead of investing, say, $1,000 all at once into Bitcoin, with DCA you might do: 👇🏽
$100 every 10% decrease in price
$200 every 15% to 20% decrease in price.
You buy more when prices are low.
Benefits of DCA:
- Reduces risk of bad timing
- No need to guess the "perfect" entry point (which is nearly impossible).
- Emotional discipline
- Keeps you from panic buying or selling based on short-term market moves.
- Especially helpful in crypto where prices swing wildly.
- Good for long-term investors
- Best suited for believers in the long-term growth of a project (like BTC, ETH, etc.).