#DCA (Dollar Cost Averaging)
Or what is known as dollar cost investing is an investment strategy that relies on dividing the capital to be invested into several regular and fixed payments over a certain period of time, regardless of market fluctuations.
The basic idea behind this strategy is to reduce the impact of price fluctuations by purchasing assets at an average price over a long period of time. Instead of trying to time the market or invest at one time, the investor buys a fixed amount of the asset whether the price is high or low.
For example:
If you have $1,000 to invest in a certain asset (such as stocks or cryptocurrencies), instead of investing it all at once, you can divide it into $100 every month for 10 months. This way, you will be able to buy more of the asset when prices are low and less when prices are high, which reduces your risk.
Advantages of this strategy:
1. Reducing the impact of volatility #السوق Since you buy periodically, you do not depend on perfect market timing.
2. Simplifying the investment decision: You do not have to worry about trying to determine the best time to enter the market.
3. Discipline: This strategy helps to maintain investment discipline.
This strategy may be less effective if the market is bullish and the market continues to rise for a long period,
