What is the DCA investment strategy

Every investor has his own investment strategy. Very often, emotions prevent profitable investing and sober assessment of risks. The DCA strategy completely abstracts you from the market, leaving time for more valuable things!

Therefore, DCA (Dollar Cost Averaging) is a strategy for investors that reduces the impact of volatility when buying cryptocurrency assets. It involves allocating a certain part of the funds to the systematic purchase of the selected asset.

This strategy allows you to systematically invest the same amount over a certain period of time. It is essential to realize that this strategy is designed for an extended period of time. Every month, for a certain part of your income, you buy, for example, bitcoin and so on, for several years.

This strategy is especially effective for a period of five years or more. The graph is a little dated, but it is still clear that in the last five years, three years, the price has been significantly less than today (22,989).

Investors, like all normal people, are prone to fear and greed, and this strategy disciplines and reassures them.