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What is Dollar Cost Pricing in Cryptocurrencies? And How to Build Your Portfolio Using DCA Strategy?
Dollar cost pricing (DCA) is an investment strategy that involves investing a fixed amount of money regularly in a particular asset at predetermined intervals, regardless of the asset's price at the time of purchase. This strategy offers several key benefits, primarily aimed at reducing market risk and promoting investment discipline.
By investing a fixed amount of money at regular intervals, regardless of asset price fluctuations, the DCA strategy helps smooth out the impact of market volatility, allowing investors to buy more shares when prices are low and fewer when prices are high, thus reducing the average cost of the stock over time.
By investing a fixed amount of money at regular intervals, regardless of asset price fluctuations, the DCA strategy helps smooth out the impact of market volatility, allowing investors to buy more shares when prices are low and fewer when prices are high, thus reducing the average cost of the stock over time.
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