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Dollar-Cost Averaging (DCA) for Beginners
What is DCA?
Dollar-Cost Averaging (DCA) is a simple, long-term investment strategy where you invest a fixed amount of money into an asset like Bitcoin at regular intervals, regardless of its price. This means you buy more when prices are low and less when theyโre high, helping smooth out the impact of market volatility over time.
Why it works well especially for beginners:
Reduces risk of bad timing: By sticking to a schedule, you avoid trying to "catch the bottom" or "sell the top."
Lowers emotional bias: You invest habitually, not emotionally reacting to market swings.
Potentially lowers average cost: Over time, DCA can reduce your average purchase price by capturing both dips and peaks.
Disciplined approach: Ideal for building long-term wealth by โtime in the marketโ rather than timing it.
Simple example for context: Letโs say you invest $100 weekly:
1. Week 1: BTC price = $20,000 โ you buy 0.005 BTC.
2. Week 2: BTC price drops to $15,000 โ you buy 0.0067 BTC.
3. Week 3: BTC price rises to $25,000 โ you buy 0.004 BTC.
Your total investment of $300 gets you 0.0157 BTC. Your average cost is lower than if you had invested all $300 at $20,000 from the start.
How to DCA Using Bitnob
Bitnob makes DCA easy and accessible. Here's how to use it step by step:
1. Create an Account & Fund It
Download the Bitnob app and sign up following the KYC process.
Deposit funds by tapping Deposit โ Fund with Local Currency โ Enter amount โ Continue โ Answer security question โ Confirm payment.
2. Choose Your DCA Strategy
On Bitnob, you can start with as little as $1.
Decide if you want your plan to run daily, weekly, or monthly, and set the durationโ3 months, 6 months, or 1 year.
3. Set Up the Automated DCA Plan
In the app, select "Create a Bitcoin savings plan."
Determine your investment frequency and duration.
Activate the plan to automate your BTC purchases.
4. Use Bitnobโs DCA Calculator (Optional but Helpful)
Bitnob offers a DCA calculator where you enter:
Amount per interval
Start and end dates
Frequency (daily/weekly/monthly)
It then projects your potential BTC accumulation versus a one-time lump-sum purchase.
๐๐That's it Happy DCA๐๐
