Benefits of dollar cost averaging

Modified on Thu, 14 Sep 2023 at 08:51 PM

While dollar cost averaging has both pros and cons, the biggest pro is the peace of mind it brings. You can create a repeat buy schedule and leave it on auto pilot, without having to watch the crypto currency price every day. If your time horizon is long enough, there is a much higher chance to benefit from using this strategy

If you make a lump sum investment, you'd be stuck watching the price you bought at and might have a lot of panic selling tendencies due to market volatility. This is not the case with DCA as you invest small amount over (ideally) a long period of time and average out your cost. Regardless of the news, price movements, FUD and everything else going on.

Does this mean you will always come out ahead ? Absolutely not. If it was that simple, everyone would now be a millionaire. However, it is a tried and true way to be more disciplined with your investing and be more focused on the long term.

You can read more about the pros and cons of dollar cost averaging here.

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