Investing Like Savings With Dollar Cost Averaging (DCA)

What is Dollar Cost Averaging (DCA)

Dollar Cost Averaging is an investment activity like regular savings by buying crypto slowly and gradually. This is one of the strategies of investors in dealing with bear market conditions. By adopting DCA, you can get an asset at a low price and then sell it when the market has reached bullishness.

Simulation Table

Advantages of Dollar Cost Averaging (DCA)

  1. There is less risk because you do not invest money in a lump sum but enter the market gradually. This also helps you avoid bad timing because crypto prices in the market move quickly and are difficult to predict. If you choose the wrong split-second timing, the profit potential will be different.
  2. DCA is suitable as an investment strategy for beginners or investors who want to invest long-term and don’t want to worry too much about technical market analysis.
  3. Protects you from FOMO (Fear of Missing Out). By doing DCA, you will focus on saving regularly without the need to pay attention to the public who is FOMO.

Disadvantages of Dollar Cost Averaging (DCA)

  1. Since you make purchases repeatedly, there are also many administrative costs that must be incurred for each purchase.
  2. The return you will get is smaller than investing in a lump sum method.



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