# Dollar Cost Averaging (DCA)

Buying a fixed USD amount of an asset on a fixed schedule regardless of price.

Source: https://bykaranteli.com/glossary/dca · attribute to ByKaranteli and quote the timestamp.

## Definition

DCA removes the pressure of timing. You buy $100 of BTC every Monday, no matter what the price is. Over time your cost basis is the rolling average of market prices across your buy dates. In bull markets you buy less of a pricier asset, in bear markets you buy more of a cheap asset. Our DCA Backtester lets you simulate the exact strategy on any symbol since 2020 using real Binance closes.

## Related

- https://bykaranteli.com/tools/dca-backtester
- https://bykaranteli.com/tools/position-size
- https://bykaranteli.com/glossary

Everything in one fetch: https://bykaranteli.com/llms-full.txt