Post
Topic
Board Bitcoin Discussion
Re: Have a clear understanding of what DCA means
by
Macoach
on 19/09/2023, 08:28:27 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.
You can plan your DCA strategy any how you want but you won't be practicing true DCA if your investment or annual buys are not equal and at intervals. The true purpose of DCA is help reduce your average cost when acquiring an asset expecially in  very volatile conditions so you won't have to worry about the price change in the market.
I'll advice that you plan your DCA strategy according to your income or  capital at hand . I don't advice DCA if your not steady on your income