AltcoinTrading.NET

Dollar cost averaging is a widely popular investment technique. It is used by investors who are long-term bullish on an asset and decided to gain exposure to it, but want to avoid speculating on the best entry price.

There are several ways to average your way into a market, by the way. The most common iteration is the original DCA, which is buying the same worth of dollars at regular intervals.

In crypto you can also do BCA though, or bitcoin cost averaging, which is buying the same amount of bitcoin at regular intervals, whatever that ends up ebing worth in your local fiat currency. On legacy markets, this practice is known as value averaging.

A common misunderstanding is confusing DCA with non-directional or non-speculative strategies. DCA is a bullish position, the investor is only trying to avoid short term speculation which can be a very good idea especially on volatile markets like crypto.