Dollar-Cost Averaging

Many investors might not have a large lump sum that they can transfer from traditional investments into a crypto portfolio. Therefore, making regular small investments from your income cash flow, regardless of crypto prices, is a great way to build up your portfolio. As a result, dollar-cost averaging is one of the best trading strategies to build your portfolio that works in both up and down markets.

Dollar-cost averaging (DCA) is an automatic system of making fixed dollar amount investments, regardless of a token’s price. By entering the investment in regular increments, you are smoothing out the anxiety resulting from imperfect timing. If the price of the cryptocurrency moves higher, you can add more shares in a strong bull market. If the price of the cryptocurrency moves lower, you will be able to add even more shares as your investment amount in fiat terms remains fixed.