Why is DCA (Dollar Cost Averaging) the best way for ordinary investors to achieve asset appreciation?

What is DCA? It is an effective investment strategy for retail investors that can navigate volatility: investing a fixed amount at regular intervals instead of a lump sum!

If an investor can practice DCA plus holding for the long term, they will surpass 99% of investors because, when viewed over a longer time frame, each year's lowest point is still higher than a few years ago's highest point!

How specifically to implement DCA? Three key points:

1. Fixed time intervals: for example, weekly, biweekly, or monthly

2. Fixed amount: invest the same amount each time

3. No market timing: stick to the plan regardless of price movements

For example:

Assuming you invest $500 per month to buy Bitcoin:

January: BTC $40,000 → Buy 0.0125 BTC

February: BTC $35,000 → Buy 0.0143 BTC

March: BTC $45,000 → Buy 0.0111 BTC

This way, your average cost will be smoothed out, avoiding the risk of buying everything at a high point in one go. Coupled with a long-term holding strategy, you can essentially sleep soundly without fear of market fluctuations!

Of course, there are some drawbacks, such as potentially lower returns in a bull market compared to a lump sum investment, the need for continuous cash flow, and possibly accumulating significant trading fees (if the platform's rate is high).

However, the biggest opponent in all trading is actually oneself; the urge to chase highs and sell lows is a lifelong struggle for investors. Many people can't even manage to consistently support this king with a follow and a free like, let alone become friends with time. What do you think? #WriteToEarnUpgrade