Learn Bitcoin is live in Beta - spot an issue or have a suggestion? We'd love to hear it!
Home Glossary D DCA (Dollar-Cost Averaging)

DCA (Dollar-Cost Averaging)

Investing a fixed amount of currency in BTC at regular intervals, reducing exposure to short-term volatility.
Share

DCA is the investment equivalent of setting your watch to ‘Buy BTC every Monday.’ Instead of trying to time big price swings, you regularly purchase small amounts. Over time, your average cost basis can smooth out market fluctuations.

Fans of DCA argue it’s psychologically easier and helps avoid the pitfalls of panic buying or selling. Detractors say you might miss opportunities if BTC dips significantly and you don’t buy more at once. Still, for many, DCA is a ‘set it and forget it’ strategy that fosters disciplined accumulation of Bitcoin.

Key takeaways
Mitigates emotional trading by automating recurring buys
Builds a position gradually without precise market timing
A popular, stress-free approach for long-term investors
Learn Bitcoin visual
Learn how to

Be Your Own Bank

Be Your Own Bank teaches you how to securely store and manage your Bitcoin, giving you full control over your finances. Unlock the power of self-custody and financial sovereignty, so you can confidently operate without intermediaries.

Take the Survey
30 sec
Free
Suggest a Term

Have a term to suggest? Enter it below and help us expand our vocabulary!