STRATEGIES
DCA (Dollar Cost Averaging)
Definition
Dollar cost averaging is an investment strategy of regularly purchasing fixed dollar amounts of an asset regardless of price, reducing the impact of volatility over time.
Example
Example
Buying $100 worth of ETH every week regardless of price, accumulating more tokens when cheap and fewer when expensive.
Risks to Consider
Risks
- Missing lump sum opportunities
- Prolonged bear markets
- Transaction costs