Dollar Cost Averaging (DCA)
Build your position gradually over time
Dollar Cost Averaging is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price. This approach reduces the impact of volatility and removes the pressure of trying to time the market perfectly.
How It WorksInstead of investing a lump sum all at once, you spread your purchases over time. For example, investing $100 every week into Bitcoin. When prices are high, you buy less BTC; when prices are low, you buy more.
Why People Choose This
- •Reduces the risk of buying at a market peak
- •Emotionally easier than timing the market
- •Builds consistent investment habits
- •Works regardless of market conditions
Key Risks to Consider
While DCA reduces some risks, these factors still deserve your attention
DCA Simulator
See how dollar cost averaging would have performed with different parameters
Run the simulation to see results