DCA
A purchasing strategy in which a fixed amount is spent at regular intervals regardless of price, reducing the impact of short-term price volatility on the average acquisition cost.
Dollar-cost averaging is a purchasing method, not a prediction. Rather than trying to identify the best moment to buy, a person commits to spending a fixed amount, for example weekly or monthly, and simply buys whatever quantity that amount affords at the time. When the price is lower, the fixed amount buys more units; when higher, it buys fewer. Over many intervals, this produces an average acquisition cost that sits between the period's highs and lows.
The approach is frequently discussed in the context of Bitcoin because of bitcoin's historically high price volatility. A single large purchase timed poorly can result in a very high average cost. Spreading purchases over time distributes that timing risk across many different price points rather than concentrating it in a single moment.
DCA is a descriptive term for a purchase pattern, not financial advice. Whether any approach to acquiring bitcoin is appropriate for a given individual depends on their personal situation, knowledge, and risk tolerance. This page explains the mechanics of the strategy, not whether it is suitable for any particular person.