Dollar Cost Averaging: A Strategy for Investing in Bitcoin
Investing in Bitcoin can seem intimidating, given the cryptocurrency’s history of dramatic price swings. Today, Bitcoin is trading at $68,386. That number reflects its evolution from an obscure digital currency to a mainstream financial asset. There are investors who are apprehensive about diving in at a single price point. They can follow a well-established strategy to mitigate the risks of market volatility: Dollar Cost Averaging (DCA).
What is Dollar Cost Averaging?
Dollar Cost Averaging, commonly abbreviated as DCA, is an investment strategy. It involves dividing up the total amount to be invested into smaller, periodic purchases over time. This method is especially popular for volatile assets like Bitcoin. That’s because…
