Crypto Dollar-Cost Averaging

Dollar-cost averaging (DCA) in cryptocurrency involves investing fixed amounts at regular intervals regardless of price, reducing timing risk in volatile markets. Bitcoin has experienced 70-80% drawdowns from peaks, making DCA particularly effective by spreading timing risk.

Historical analysis shows DCA would have produced positive returns over any four-year period since 2012 despite multiple major drawdowns. Cryptocurrency should represent only 1-5% of total portfolio for risk-tolerant investors. Daily/weekly DCA smooths short-term volatility more than monthly. Trading fees of 0.5-2% per transaction impact returns when investing small amounts frequently.