Trading Basics

DCA (dollar-cost averaging) explained

Dollar-Cost Averaging

Quick definition: DCA is a strategy of splitting your money into smaller amounts and buying regularly over time (or at set price levels) instead of buying all at once.

Instead of trying to time the bottom, you buy a fixed amount every week or every month. When the price is high you get fewer coins, when it is low you get more, smoothing out your average cost.

DCA suits working people investing long term in major coins such as BTC and ETH.

DCA is not endless "averaging down" into a weak coin. Choose assets you believe in for the long term and stay disciplined.

💡 Example

You buy VND 2 million of BTC every month for 12 months. Some months the price is 90,000, others 70,000, and your final average cost might be around $79,000.

📊 Calculate your DCA average price →

Related terms

Spot tradingSpot means buying and selling actual coins at the current price: you pay and receive the coins in your wallet …PnL (profit and loss)PnL is the profit or loss of a position or account. Unrealized PnL is the estimated profit or loss while a pos…Bull and bear marketsA bull market is a prolonged period of rising prices; a bear market is a prolonged period of falling prices.…Bitcoin halvingHalving is the event in which the reward for Bitcoin miners is cut in half, occurring roughly every 4 years.…

← View all 35 crypto terms

Educational content for reference only, not financial advice. Leveraged trading carries the risk of losing your entire capital.