What Is Dollar-Cost Averaging (DCA)? Bitcoin & Crypto Guide

Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals — regardless of price — rather than investing a lump sum all at once. This strategy has become especially popular in cryptocurrency investing, where extreme price volatility makes timing the market nearly impossible. DCA reduces the emotional stress of investing, lowers the risk of buying at the top, and builds a disciplined long-term investment habit. This guide explains how DCA works, calculates the math behind it, and compares it to lump-sum investing.