Dollar-cost averaging (DCA)
Dollar-cost averaging means buying a fixed amount on a fixed schedule, whatever the price. Definition, a worked example and how to automate it safely.
Definition
Buying a fixed amount of a coin on a fixed schedule, such as $40 every Monday, whatever the price, so you buy more when it is cheap and less when it is expensive.
Dollar-cost averaging, or DCA, is the simplest way to build a position over time. You choose an amount and a schedule and stick to them. Because the amount is fixed, each buy gets more coins when the price is low and fewer when it is high.
Example
With $100 a week, you buy 2 coins at $50, 2.5 at $40, 4 at $25 and 2 at $50. You spent $400 for 10.5 coins, about $38.10 each, while the simple average of the four prices was $41.25.
Why it matters
DCA removes the hardest decision in investing: when to buy. It needs no forecast and is easy to keep up for months. Its weakness is that it keeps buying in a long fall, so a sensible plan adds a monthly budget and a stop rule that pauses buys when the price is far below your average.
How TradeCorgi uses it
Describe the plan in plain words, such as "Buy $40 of ETH every Monday, pause buys if ETH is 15% below my average price", and your Corgi turns it into a strategy card with the schedule, the budget and the stop rule. It is backtested with fees, runs on paper first, and skips and explains any buy the stop rule or the budget prevents. See the full DCA strategy.