Why is DCA preferable over lump sum buying?

The main advantage of DCA is that it lessens the impact of price swings on the average buying price of a token, allowing for more favorable asset yields over the long-term. The key principle that makes DCA a preferred investment strategy hinges on market volatility and the lower average buying prices that you can benefit from if you invest over time.

There are other advantages, too, such as fostering a disciplined approach to investing. Monthly or weekly asset buying can build a habit of regularly setting aside capital specifically for investment purposes. Moreover, it removes the temptation to try and time the market or buy according to prevailing market sentiment, which is often driven by emotion.