Beginner6 min read
Dollar-Cost Averaging (DCA) for Crypto
When DCA works, when it does not, and how to combine it with portfolio and risk rules.
dcainvestingportfolio strategy
What DCA does
- Spreads entries over time to reduce timing pressure.
- Works best with quality assets and a long horizon.
Execution rules
- Set a fixed schedule and fixed amount.
- Avoid stopping the plan solely due to short-term volatility.
Common mistakes
- Using DCA in low-liquidity, low-quality tokens.
- Over-allocating while ignoring broader portfolio balance.