Dollar-cost averaging (DCA)
DCA is an investment strategy where you buy a fixed amount of BTC at regular intervals regardless of price, spreading timing risk.
DCA eliminates timing anxiety: weekly or monthly, convert a fixed amount to BTC. Buying at high price? Less BTC. At low price? More BTC. Average purchase price is by definition below the maximum. Psychologically far easier than 'buying the bottom' (which no-one can do consistently). For most retail investors the optimal strategy.
Example
A client automatically sends €200/week to Bitvavo and converts directly to BTC cold storage. Over 5 years: 260 purchases at widely varying prices, but averaging near the time-weighted mean.
Frequently asked questions
How much should I DCA?
Rule: only money you won't need for 3-5 years. Typically: 1-10% of monthly income for retail investors.
Related terms
Further reading
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