What is dollar-cost averaging? Buying a little at a time
By SendPay Business · · 2 min read
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Dollar-cost averaging (DCA), also called pound-cost averaging in the UK, means buying a fixed amount at regular intervals, such as £50 every week, whatever the price. Over time you buy more when prices are low and less when they're high.
How it works
Because the amount stays the same, a lower price buys more coins and a higher price buys fewer. Your average cost per coin ends up somewhere between the highs and lows you bought through.
Where it helps
- It takes away the pressure of trying to time the market.
- It builds a habit and keeps each purchase small.
- It can soften the effect of sharp price swings on your average cost.
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Where it doesn't
DCA doesn't stop you losing money if prices fall and stay down. Regular buys also mean regular fees, so it pays to know what each purchase costs. Past performance is no guide to the future.
Where SendPay fits
SendPay crypto exchange platforms let your customers buy, sell and hold crypto under your own brand, with assets held with regulated partners, and you set your own trading fee.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.