Dollar Cost Averaging - (DCA)
This is a very useful hodling strategy that can help you earn good returns despite substantial
price drops in the cryptocurrencies in your portfolio. So how does cost-averaging work?
Cost averaging refers to a method of investing by which you buy more units of a financial asset
(cryptocurrencies, bonds, stocks, etc.) when prices go down. You may be thinking: "Why the
heck would I buy more units of a financial asset whose prices are going down?" That's a good
question, one that I'm inclined to answer.
The principle behind cost averaging is this: by buying more units of a financial asset when its
price goes down, you bring down your average initial cost per unit of that financial asset.