Dollar Cost Averaging
Definition
Dollar Cost Averaging (DCA) is a strategy of purchasing certain amounts of assets at regular intervals, reducing the average cost without being affected by market fluctuations.
Dollar Cost Averaging (DCA) is a strategy of purchasing a certain amount of an asset at regular intervals. This strategy recommends that the investor make asset purchases on a continuous basis in order to avoid being affected by price fluctuations. In the DCA strategy, the investor buys fewer units when asset prices are rising and more units when they are falling. This reduces average cost and protects against market fluctuations. Dollar Cost Averaging is generally popular among long-term investors and can be used for stocks, cryptocurrencies, and other assets.
This entry is part of the JrKripto crypto glossary. We explain key terms and concepts to help investors and traders understand the cryptocurrency market. Clear definitions support better decision-making and risk management.
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The JrKripto crypto glossary explains important terms and concepts so investors can understand the market better. Clear definitions support decision-making and risk management. Each entry has a short definition and, where useful, an extended explanation for quick reference or deeper reading.
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