DCA (Dollar Cost Averaging): WHAT IT IS AND HOW IT WORKS.
📊 DCA is a simple investment strategy designed for beginners.
👉 It involves INVESTING A FIXED AMOUNT OF MONEY PERIODICALLY, regardless of whether the asset price goes up or down.
👉 It can be weekly, monthly, or at the interval you choose. The key point is consistency.
👉 With DCA, you do not try to guess the "best moment" to enter the market. You invest always.
👉 When the price is high, you buy fewer units. When it is low, you buy more.
Over time, the average purchase price tends to smooth out and reduce the impact of volatility.
📈 This strategy is widely used in volatile markets such as crypto, but also in stocks, ETFs, or funds.
It is ESPECIALLY USEFUL for those who have no experience, little time to analyze charts, or do not want to keep an eye on the market every day.
DCA HELPS TO CONTROL THE EMOTIONAL FACTOR.
👉 It avoids impulsive decisions based on fear or euphoria, two common mistakes among new investors.
It does not eliminate risk, but it manages it better.
💎 Simple example:
Investing 100 dollars every month in the same asset for years.
No complications, no stress, with a long-term vision.
DCA is not a magic formula nor does it guarantee profits. It is a disciplined tool to build positions gradually and orderly. Ideal for starting.
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