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.
I think it's not wise to call DCA an Installment and then say that we have to pay it until it's paid off. Because we are not paying to anyone instead we are accumulating BTC as much as we can and in DCA we just have to accumulate BTC according to some time interval and the investment should be the same (but not necessarily as it is not writer anywhere that you have to invest a fixed amount of fiat into the BTC). Besides all that you do understand what is DCA but failed to explain it. Because your example is also very tough to understand.
But still, it makes sense but for those who are already pro or not newbies here, but the aforementioned example lacks some simplicity. I hope you will not mind my words.
However, it's important to note that DCA may not always work in your favor. In some situations, it could increase your average cost, especially during a bull run. Nevertheless, the purpose of DCA is to spread your investments incrementally, which can be advantageous in the long run. It provides a balanced approach to accumulating assets, ensuring you still acquire your desired cryptocurrency. I hope this explanation sheds light on the essence of DCA.
Many people might not agree with my opinion which is, that we should not do DCA in a bull run instead the best time is the one when the accumulation phase starts. And accumulation phase starts after the bull run. In that phase, we should do DCA as much as we can and also buy on dips and keep in mind that we should keep some funds in emergency too. I prefer not to do DCA in Bull Run because in bull run I prefer to book the profit that I have made while the accumulation of it. I hope you will understand my point.