DCA, or “Dollar-cost averaging”, is a popular way to accumulate an asset over time. Instead of a one-time lump sum purchase, DCA involves purchasing a fixed amount of an asset in predetermined intervals.
For example, purchasing $100 worth of Bitcoin on the 1st of every month is dollar-cost averaging into Bitcoin. Investors with a positive long-term outlook on Bitcoin can use DCA to reduce the impact of volatility on their investment.
This strategy has a few key benefits:
Invest with smaller amounts over time. Even new investors can build wealth by starting small and staying consistent.
Take the emotion out of investing decisions. When you’re investing on a schedule with predetermined rules, you’re less likely to FOMO buy the at the top or miss out on a bottom.
Invest for the long-run by spreading out your cost-basis. Instead of buying once and hoping you timed the market well, focus on long term gains rather than short term volatility.
With Ryze, you can set up recurring buys to dollar-cost average into Bitcoin, automatically.