Dollar Cost Average

How is everyone in this community? I hope you are well. Today I will discuss Dollar Cost Average with you all. This is very important for those who trade in the cryptocurrency market. Many know about DCA and many have no idea about it. Today I am sharing this topic with you, I hope you will like this post.

The full form of DCA is Dollar Cost Average. I am briefly sharing some information about this. Suppose you buy any coin from crypto market at 1$ price. A few days later, the price of that coin went down a little, then from 1$ it decreased by 0.20$ to 0.80$ price. Then you buy some more coins. By doing this, if you accumulate the price of the first coin that you bought with 1$ and the price of the next ones that you bought with 0.80$, then your average buying price will come to 0.90$.

Suppose you bought 100 coins at a price of one dollar, each coin's price fell by 1$. Then when the price drops to 0.50$ you buy more coins then each coin price drops to 0.50$. In this case, you have bought 100 coins with 100 dollars, now you have bought 200 coins with 100 dollars of the same coin. Total you bought 300 coins with 200 dollars. Now if we calculate then it will be seen that our total cost is 200 dollars and total we got 300 coins. Now if we divide $200 by 300 then we have each coin worth 0.66$.

Source

---

But I bought 100 coins for 1 dollar but now if I calculate the average, the price of those 100 coins has come to only 0.66$. This is called DCA stands for Dollar Cost Average. Those who maintain DCA and trade in the market have very little chance of losing. It is possible to make more profit if you maintain DCA and delay.

ABOUT ME

Hey I Am Amran Hossain Patwary.I Am Professional Digital Marketer And I Also Web Developer. My Steemit Account @ahp93 . I am Using Steemit From December 2022 . I Like Traveling & Photography . I am Very Interested on Information Technology. I Want to Learn More About Technology And I Want to Teach About Technology .