What is Dollar-Cost Averaging (DCA)?

Dollar-cost averaging (DCA) is an investment strategy where an investor divides up their investment capital to make periodic purchases of an asset to gain a better overall average entry price. DCA is often considered one of the most prudent investment strategies for crypto due to the industry's inherent volatility. By buying at regular intervals regardless of price movement, DCA helps investors avoid poorly-timed lump sum purchases. An example of DCA would be an investor buying USD 100 worth of bitcoin (BTC) every week for a year instead of one large BTC buy of USD 5200.