"DCA is a trading strategy that uses automated, small, regular buys to stay invested without trying to time every move. There's a clear precedent for scalability: El Salvador has been publicly DCA'ing 1 BTC per day since Nov. 17, 2022. However, lump-sum investing often wins in uptrends historically outperforming DCA about two-thirds of the time. It works best for investors who earn regularly in fiat and prefer a steady, rule-based approach over impulsive trading."
"Dollar-cost averaging (DCA) is the practice of buying a fixed amount of an asset at regular intervals, such as every week or month, without considering price movements. By spreading your entries over time, you lower the risk of mistiming a single large purchase and achieve an average entry price that mirrors the market's ups and downs. Imagine investing $10 in Bitcoin (BTC) every week. When the price drops, your $10 buys more units; when it rises, you buy fewer."
Dollar-cost averaging (DCA) involves buying a fixed amount of an asset at regular intervals regardless of price. Regular purchases spread entries over time, lowering the risk of mistiming a single large purchase and producing an average entry price that follows market ups and downs. DCA automates small, recurring buys to maintain exposure and reduce the need to time markets. Lump-sum investing historically outperforms DCA in sustained uptrends roughly two-thirds of the time. DCA suits investors with regular fiat income who value a rule-based approach and behavioral discipline. DCA does not prevent losses if an asset trends consistently downward.
Read at cointelegraph.com
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