DCA (Dollar-Cost Averaging)

Strategy of regular fixed-amount buys regardless of price.

DCA: regular fixed buys, no market timing. Avg out price. Beats 70% of active trading over 5+ years. Hardest in panic but most beneficial then.

In plain words

Instead of trying to time the bottom, you buy a fixed amount regularly, e.g. $200 every week. Sometimes high, sometimes low, you average out. Saves stress and statistically beats most active trading attempts long-term.

Example

Adam DCAs $100/week BTC from Jan 2022 to Jan 2024. Avg price 28k. March 2024 = 70k. Profit +150%. Without DCA likely bought ATH 69k = 0%.

Also known as: dollar cost averaging, uśrednianie kosztów

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