What is DCA of BITCOIN and why use it?
Definition: buy a fixed amount of $BTC BTC at regular intervals (for example, $100 every Monday), regardless of the price.
Objective: to mitigate the impact of volatility, avoiding 'market timing'.
Benefits:
Avoids emotional decisions (FOMO/FUD).
Average acquisition cost tends to be more stable.
Facilitates long-term discipline.
INITIAL PLANNING
Define the monthly budget
Ex.: you decide to invest $500 per month in BTC.
Choose the frequency
Weekly (4–5 purchases/month) tends to be balanced.
Can be biweekly, monthly, daily (requires automation).
Determine the amount per purchase
If weekly: $500 ÷ 4 = $125 each week.
🤑Discipline and emotional control
Golden rule: stick to the plan even when there are significant drops (bear markets) or strong rallies (bull markets).
Support tools:
Purchase alerts set on your phone.
Weekly reports to review if you met all orders.
Psychology:
If the price drops, you don't regret it, because you buy 'cheaper'.
If the price rises, you feel that you 'bought before the increase'.
Control spreadsheet
Columns: date, amount in $, BTC price, amount acquired, accumulated balance, average cost.