Dollar Cost Averaging


1. | strategy

A method of investing which involves buying an investment over an extended period of time, purchasing at set intervals regardless of price.

1.1 > Ex.

Buying $1,000 worth of an asset every month for 3 months. In the first month $1000 buys you 1 coin, in the second month $1,000 buys you 2 coins, in the third month $1,000 buys you 1.5 coins. You’ve now spent $3,000 and hold 4.5 coins for a dollar cost average of $666.66/coin.

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