How to buy Bitcoin using DCA

[Shaf]

Almost every cryptocurrency investor will hear about the term DCA or dollar cost average at some point in their investment journey. That's because it's valuable and helpful. It also applied to investing in mutual funds, stocks and shares too..

When you DCA, you buy an asset, in this case Bitcoin at regular intervals in smaller amounts instead of buying at once as a lump sum, at regular intervals with the same amount of money. For example, you
can buy $50 worth of Bitcoin every month from now till April next year on the 30th of each month, instead of buying $600 worth if it now.

It surely has a lot of advantages. For one, it will save you the stress of trying to time the market to buy at lower prices, especially with how volatile cryptocurrency is.

You can also buy and accumulate Bitcoin for long term holding as you get paid, instead of trying to save up a lot of money to buy at once which can be hard for some people.

This way, you will eventually find that you can make more profits as the price history of Bitcoin has shown as your buying price will be less than selling price when you need the money.

 

[Suba]

At first the Dollar Cost Averaging strategy was better known for investing in stocks and mutual funds, but nowadays many people are also trying to apply DCA to crypto investments. DCA strategy is like saving regularly the same amount either every week or every month. So at any price crypto if the time comes we will still go in and buy.
The main objective or benefit of the DCA strategy is to avoid the risk of market price volatility in the short term. so investors do not need to panic sell. This strategy is also very suitable for novice investors so that it is not affected by FOMO. I think one of the weaknesses of the DCA strategy is that it doesn't pay attention to market prices so we might lose the big profits that will be obtained if you use the lump sum investment strategy.