A question that many people ask when it comes to cryptocurrency is, “When is the right time to invest?” It’s impossible to answer that question, as the crypto market is volatile and actively searching for where to invest your money is stressful and time-consuming. After all, how do you know when to buy when the price of crypto is so volatile? You could buy too early, too late, or because of this fear of variance, you might not buy at all.

To avoid spending too much time trying to time the market when buying crypto, investors use this strategy called dollar-cost averaging or DCA to start small and build long-term value without getting hit by market volatility. In this post, we’ll explain what DCA is, how it works, why it happens, and how to apply it when investing in crypto.

Dollar-Cost Averaging (DCA) or Cost Average Investing is an investment strategy in which the investor spreads the total amount he wants to invest in an asset over a long period of time instead of spending it all at once. It is essentially the practice of buying small amounts of an asset on a regular basis, regardless of the current market value of that asset at the time of future investment.

This strategy is designed to control the volatility of an asset’s value, thereby reducing the risks of investing all your available funds in the same asset at once. Since any form of trading (stocks, gold or crypto) is subject to market fluctuations and searching for the perfect moment to invest in an asset can be time-consuming, DCA can be a good approach for those individuals who are unable to read the market.