Glossary
Dollar-Cost Averaging
A strategy of buying a fixed amount of an asset at regular intervals regardless of price, smoothing out volatility and removing the pressure to time the market.
Dollar-cost averaging (DCA) means investing a fixed amount of money into an asset at regular intervals — say $100 of BTC every week — no matter what the price is doing. When the price is low the fixed sum buys more units; when it is high it buys fewer, so the average entry price smooths out over time instead of resting on a single lucky or unlucky purchase.
The approach is popular in crypto because of extreme volatility: it removes the emotional pressure to time tops and bottoms and spreads one large buy into many smaller ones. Exchanges and wallets automate DCA with recurring buys, and some DeFi protocols offer it through TWAP-style orders that execute incrementally across many blocks.