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DCA [Crypto Trading Glossary]

jargon     · [trading]

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What do crypto traders call DCA and how to do it?

DCA acronym meaning in crypto trading

DCA in the context of trading or investing stands for “dollar cost averaging”.

What is the goal of DCA?

DCA is a technique to increase your exposure through regular purchases of an asset, regardless of its momentary price.

If you dollar cost average into an asset, you are essentially building an ultra long-term, unleveraged (spot) long position in that asset.

How do you dollar-cost average in crypto markets?

In regular intervals, you spend a fixed amount of your fiat currency to buy as much of the asset of your choice as that amount is good for.

For instance, you can decide that every month, on the day of receiving your pay check, you buy 500 USD worth of Bitcoin.

 

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