What is Dollar-Cost Averaging ?

DCA is the short form of Dollar-Cost Averaging which is a strategy applied on investment in such a way that it balances your buy price of a product. It is a strategy in which investors invest equal amount of money at the regular intervals in order to reduce the loss.

Investment on something can be very challenging even sometimes for the experienced users. They may get in trouble buying at the top which out a lot of financial pressure. Investing is always comes up with risks. You are not gauranteed a profit when doing investment on a product or cryptocurrency.

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DCA is the strategy that is most popular among the investors when they want to lower the average buy price. For example if you bought a crypto cryptocurrency lets say its $LEO. You bought it at some price and now the price starts to go down. Now you are in loss on your investment. To get out of the loss or balance the buy price you can invest more money at the current price which is lower from your previously buy price. You can repeat this strategy. It will average your buy price once the $LEO starts to recover. This way you can generate profit on your investment easily.

For the Dollar-Cost Averaging (DCA) you must have enough money in your wallet. Its advised to not invest your full bag of money at once. If you do by any chance then you will still need money for the DCA.

DCA is the perfect strategy to make profitable investment. It can be used by anyone, no matter if you are an experienced one or a beginner, all you need is to invest wisely over a certain period of time such that your average price becomes very suitable.

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Now that you have learnt about the Dollar-Cost Averaging , You maybe thinking that how much you should invest. The answer to this is simple. Look at your monthly budget and decide a how much is suitable to invest.
Invest only what you can afford to lose. DCA can also be risky depending on many factors. You should apply this strategy on a solid crypto and not on a memecoin as they are highly volatile and you may lose money even by applying DCA.

While investing into a product or cryptocurrency you should not be greedy. I meant dont invest on highly volatile assets as this may put you at big loss because i have observed in the past that some crypto never recovered and eventually went to zero. This is why you need to choose a strong project for investment.

Thats it for today.
Thanks for reading.
What do you think about my today's topic? Let me know your thoughts in comment section.
In the end i would like to Wish you and your family a happy day ahead. Stay Blessed.

About Author
@coolguy222 is a crypto trader and content creator on hive blockchain. He also runs a small business of Mobile accessories and Wrist watches. He loves to make new friends.

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