DCA: The Boring Strategy That Works

You could try to time the market. Buy the dips. Sell the tops. Catch every swing.

You won't succeed. Almost no one does. Even professional traders with sophisticated tools mostly fail to beat simple buy-and-hold strategies.

There's a better approach: dollar-cost averaging (DCA). It's boring. It's simple. It works.

What Is DCA?

Dollar-cost averaging means investing a fixed amount at regular intervals, regardless of price.

Instead of: "Bitcoin is at $50,000, should I buy?"
You do: "It's Tuesday, I buy $50 of bitcoin."

That's it. No analysis. No timing. No stress.

Why It Works

1. You remove emotion from the equation

When prices are high, you feel like you're buying the top. When prices are low, you're scared it'll go lower. Both feelings lead to bad decisions.

DCA removes the decision. You buy on schedule. The price is what it is.

2. You average out volatility

Sometimes you buy high. Sometimes you buy low. Over time, you get an average price that smooths out the swings.

Example over 4 weeks:

• Week 1: $60,000/BTC → $100 buys 0.00167 BTC
• Week 2: $50,000/BTC → $100 buys 0.00200 BTC
• Week 3: $55,000/BTC → $100 buys 0.00182 BTC
• Week 4: $65,000/BTC → $100 buys 0.00154 BTC
• Total: $400 invested, 0.00703 BTC
• Average price: $56,900

You bought some at $60k and some at $50k. Your average is somewhere in between.

3. You're always buying

The best time to have bought Bitcoin was 10 years ago. The second best time is now. DCA ensures you're continuously accumulating, not waiting for a "perfect" entry that never comes.

Setting Up a DCA Plan

Step 1: Decide your amount
What can you invest regularly without stress? $20/week? $200/month? The amount matters less than consistency.

Step 2: Decide your frequency
Weekly is common. Biweekly aligns with many paychecks. Monthly works too. More frequent = smoother averaging, but more transactions.

Step 3: Automate it
Use an exchange with auto-purchase features (River, Swan, Coinbase). Set it and forget it.

Step 4: Auto-withdraw (if possible)
Some services can automatically withdraw your bitcoin to your own wallet after purchase. This removes the temptation to leave it on the exchange.

DCA vs. Lump Sum

What if you have a lump sum to invest? Is it better to DCA in or invest all at once?

Mathematically, in an appreciating asset, lump sum usually wins. You want your money working as long as possible.

Psychologically, DCA often wins. If you invest everything and the price immediately drops 30%, you might panic sell. DCA protects you from this.

Know yourself. If you can handle volatility emotionally, lump sum. If not, DCA in over a few months.

The Real Secret

The real secret to DCA is that it keeps you in the game.

Most people who try to time the market eventually:

• Sell during a crash and miss the recovery
• Wait for a dip that never comes and miss the run
• Trade themselves into a loss through fees and taxes

DCA just keeps accumulating. Through crashes. Through rallies. Through boring periods. Year after year.

The people with the most bitcoin aren't the best traders. They're the ones who consistently stacked over time.

Common Objections

"But what if I know it's going down?"
You don't know. No one does. And even if it does, do you know when to buy back in? Just DCA.

"DCA means buying at highs too"
Yes, and at lows, and everything in between. That's the point. Over bitcoin's history, all DCA strategies have been profitable given enough time.

"This is too boring"
Boring is good. Exciting trading is usually expensive trading. Wealth is built through consistency, not cleverness.