Simply:
DCA means regularly investing the same amount regardless of the current price.
What is DCA
DCA (Dollar-Cost Averaging) = strategy where:
for example, you invest the same amount every month
you do not worry about short-term fluctuations
you average the purchase price
Instead of trying to 'catch the bottom', you invest systematically.
Real-world example
You invest 5,000 CZK monthly into BTC:
month 1 → high price → you buy less BTC
month 2 → low price → you buy more BTC
month 3 → medium price → you buy the average
➡️ In the long run, you create an average purchase price
Why is DCA popular
reduces stress
limits the influence of FOMO and FUD
no need to time the market
suitable for long-term investors
When DCA works best
over a long-term horizon
when investing in strong projects
during a bear market
Common mistake
"The price dropped, I will stop investing."
Especially during downturns, DCA often makes the most sense – because you buy cheaper.
Advantages vs. disadvantages
✅ Advantages:
simplicity
discipline
lower emotional pressure
❌ Disadvantages:
you may have lower profits than with ideal bottom purchases
requires patience
In one sentence:
DCA helps you invest systematically without the stress of timing the market.
