Post
Topic
Board Bitcoin Discussion
Re: Have a clear understanding of what DCA means
by
SeriouslyGiveaway
on 19/09/2023, 01:05:07 UTC
DCA involves consistently investing smaller, equal amounts over time, as opposed to making large, irregular crypto purchases. Think of it as making payments for a product in installments, at regular intervals, until the total is paid off. When you regularly invest in your preferred cryptocurrencies, you automatically accumulate more assets over time, regardless of market fluctuations. This can help you grow your holdings and potentially reduce your overall average cost during market dips.
DCA does not only include investing small amount of capital over time. Small or big capital for each time of DCA depends on your total capital for investment and your DCA plan.

You even don't have to use a same amount of capital for each DCA round. Sometimes you can use smaller or bigger amount of capital for a DCA round. Because it can depends on your feeling about the market trend as well as your available funds for DCA at that time. If you see the market is good and you have money in hands, you can DCA with doubled capital than your normal amount.

If your income flow suddenly decreases, you can stop DCA or DCA with smaller capital amount.

Many things that affect your DCA plan and don't bind yourself with any amount of capital. Even you try, you will fail to follow it.

Want to have DCA math and tool, use it https://dcabtc.com/