What is a dollar cost averaging strategy?
Dollar cost averaging is an investment strategy that aims to reduce the impact of volatility when purchasing assets. It involves purchasing assets in equal proportions at regular intervals. This hypothesis is built on the basis that when entering the market in this way, the investment will not be subject to fluctuations, as is the case when injecting money all at once (i.e. pumping the entire amount at once). How is that? Here's the answer: Buying at regular intervals will reduce the average price. In the long run, this strategy works to limit the negative impact that entering into bad deals may have on your investment
