Dollar-Cost Averaging (DCA)

Dollar-Cost Averaging (DCA) is an investment strategy where an asset is purchased at regular intervals. In this type of long strategy, the volatility of the asset is smoothed across the investment timeframe.

This can help to reduce the impact of volatility on the overall cost of the investment, and can be an effective way to build a long-term portfolio.

In the context of DeFi, DCA can be used to invest in a variety of assets, including cryptocurrencies, stablecoins, and other DeFi tokens.

By using this strategy, investors can potentially reduce their overall risk and achieve better returns over time.

To implement a DCA strategy in DeFi, investors can use a decentralized exchange or a DeFi platform that supports automatic, recurring purchases of the asset they wish to invest in.

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