We all know the old proverb 'Buy low, Sell high'. This great piece of knowledge was passed down generations from Aristotle to Mahatma Gandhi to Abraham Lincoln and now even a simpleton like you.

But then, Why aren't you and I rich? This is where Gandhi's wisdom falls apart. No matter how much cash you have or how many economics degrees you obtained, Nobody knows for sure where the market will be tomorrow. We don't know when the market is low or when it is high. This is where Dollar Cost Averaging comes in.

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What is Dollar Cost Averaging?

DCA is an investment strategy in which an investor allocates the total amount to be invested across recurring purchases of an asset to minimize the impact of volatility on the overall purchase. Regardless of price, you consistently invest at pre-determined intervals.

For example, You purchase $250 of bitcoin every two weeks. Every second Monday, Regardless of whether the market is up or down, You buy bitcoin.

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Why DCA?

Risk reduction: DCA reduces the impact of market volatility by investing a set amount on a regular schedule.

Spread Out: You don't have to put in your entire saving account all at once, Just a little bit of your pay check every month.

Manage emotions: You don't have to hawk over the prices 24/7 looking for the perfect price to buy. You can both buy bitcoin and not lose hair at 30.

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Why not DCA?

Bull gains: DCA averages out profit. That means minimised profits in a bull market and minimised losses in a bear market.

Long term: DCA is for those who want to make money long term, Not those who want to make a quick buck.

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Walkthrough

``` Market drops 15% You: Doesn't look like anything to me

Market drops 35% You: Doesn't look like anything to me

Market drops 80% You: Doesn't look like anything to me

Market gains 210% You: ???? ```

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TLDR: Time in the market > Timing the market.