What is Dollar Cost Averaging?

in #bitcoin7 years ago

Hey guys here is a video I made explaining what Dollar Cost Averaging is. I plan to make more of these short videos. Enjoy!

Dollar Cost Averaging

  • Investment Technique
  • Slowly invest a fixed dollar amount on a regular schedule
  • Your buy in price will average based on your time in market
  • Used by new investors who want to get in the market slowly

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Quality and informative post there man, thanks for sharing this, I was just searching for the topic. Good timing!

Edit: So instead of say, investing 1000 all at once, I should to it slowly at like 100 per week? What if prices shoot up? Wouldn't it be better to buy at a low all at once?

You are right, i the case you gave above, it would of been better to go all in at the start.

It's more a matter of preference. Some people are too worried that if they put it all in at once they lose a lot if the price goes down.

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