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Dollar-cost averaging (DCA)

Glossary

Trading

Dollar-cost averaging (DCA)

Buying a fixed dollar amount on a recurring schedule, regardless of price.

Definition

In depth

DCA is a strategy where you buy a fixed dollar amount of an asset on a recurring schedule (e.g. $100 of BTC every Friday). It removes timing risk and smooths out volatility — at the cost of potentially underperforming a perfect lump-sum buy.

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