What is DCA and who is it for?

For 'Dollar-Cost Averaging', this is an investment strategy. It consists of buying an asset (share, ETF, cryptocurrency,...) at regular intervals, for the same amount, over a given period of time, regardless of the price of the asset in question.

The DCA is a very good investment strategy when market conditions are uncertain, when the investment concerns an asset with high volatility, or simply to build a long-term wealth.

DCA can reduce the impact of volatility on an asset.
It can reduce the average purchase price, and protects against a purchase at the wrong time, by smoothing the entry price.
By buying at regular intervals in a highly fluctuating market, DCA makes it possible to buy more assets at low prices and less when the price is high.
It makes it possible to regularly accumulate one or more assets, in order to build up a wealth over time.

It should be noted that while the DCA is a good investment strategy during periods of fluctuation (when prices rise and fall), on the other hand, this strategy is not very suitable during market phases where trends are clearly marked (bullish or bearish).

This strategy is particularly aimed at long-term investors, whether beginners or experienced.