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What is Dollar Cost Averaging (DCA)?

Reviewed by the ONCHAIN TRADE DOJO team · Updated March 12, 2026

Regularly investing fixed amounts to smooth out average entry price and reduce emotional decisions.

Example

Instead of investing €1,200 in Bitcoin all at once, you buy €100 every month for twelve months. Sometimes you buy high, sometimes low — over time your entry price averages out. This removes the pressure of timing the perfect moment and smooths volatility. DCA is especially suited to working people and beginners who do not actively trade but want to build a position long-term.

Related terms

What is Dollar Cost Averaging (DCA)? Definition & example | ONCHAIN TRADE DOJO