What is Dollar-Cost Averaging (DCA) & Why is it important?

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  1. Beginners just trying out the market
  2. Unlikely to keep investing in down markets
  3. Anyone who doesn’t like seeing a net negative gain which may occur when you buy all assets at one time
  • Dollar-cost averaging refers to the practice of dividing orders of an asset class such as bitcoin up into multiple smaller buys of equal amounts, spaced out over regular intervals instead of going “ALL IN”.
  • The goal of dollar-cost averaging is to reduce the overall impact of volatility on the price of the target asset.
  • Dollar-cost averaging aims to avoid making the mistake of making one lump-sum investment that is poorly timed with regard to asset pricing.

Risk Reminder:

1. Trading in digital assets comes with high risks due to huge price fluctuations. Users should be fully aware of the risks associated with digital asset trading and make prudent trading decisions.

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