Does the DCA strategy inspire newbies to invest?

[Tongley]

Can someone explain exactly how DCA works?

I heard from some they buy only when its cheaper averaging their entry lower, and some just buy every week/month no matter the price of a token.

DCA is an investment method. The DCA method is to continue investing the same amount of money for a fixed period of time, weekly or monthly. But yes, if you want to change something, you will still be included in the DCA method. Through the DCA method, you can get the purchase price. For example, if you buy for $ 10 one week and if you buy for $ 10 the next week and in this way if you continue to buy continuously on a weekly basis, you will be able to get the average purchase price and in this way if you continue to buy, the effect of short-term market volatility is reduced to some extent. In using the DCA method, you do not have to pay attention to the market price, but whatever the market price, you have to focus on your continuous purchase.

[icebar]

Can someone explain exactly how DCA works?

I heard from some they buy only when its cheaper averaging their entry lower, and some just buy every week/month no matter the price of a token.

DCA is an investment method. The DCA method is to continue investing the same amount of money for a fixed period of time, weekly or monthly. But yes, if you want to change something, you will still be included in the DCA method. Through the DCA method, you can get the purchase price. For example, if you buy for $ 10 one week and if you buy for $ 10 the next week and in this way if you continue to buy continuously on a weekly basis, you will be able to get the average purchase price and in this way if you continue to buy, the effect of short-term market volatility is reduced to some extent. In using the DCA method, you do not have to pay attention to the market price, but whatever the market price, you have to focus on your continuous purchase.

DCA does not mean that you have to invest for a specific time or a specific amount. Rather, DCA is a continuity that you can decide by considering your own cash flow. When someone thinks that the DCA condition is a specific time or a specific amount, then he can weaken his financial situation by chasing after fulfilling the DCA conditions. The advantage of DCA is that you can invest even with the small amount of discretionary income you have. But fulfilling the specific amount condition can sometimes create mental stress. Investing in DCA for a specific time is not mandatory, rather DCA is about continuing to save consistently considering your financial situation and not stopping at all.