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defi Term

What is Dollar-Cost Averaging (DCA)?

An investment strategy of allocating fixed dollar amounts into an asset at regular intervals regardless of price.

Detailed Definition & Context

Dollar-Cost Averaging minimizes the impact of market volatility by automatically buying more units when prices are depressed and fewer when prices are elevated. It removes emotional timing risk.

Practical Example

Investing $50 every Monday morning into Bitcoin over 3 years instead of investing a $7,800 lump sum on day one.

Related Concepts
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Interactive Tool

Calculate & Explore Dollar-Cost Averaging (DCA)

Model recurring crypto buys to see how DCA mitigates volatility over time.

Open Dollar-Cost Averaging (DCA) Calculator