Unit 3 · Level 2 · The Long Game
DCA: the boring superpower
DCA means investing a fixed amount on a fixed schedule (say €100 every month) regardless of price. High prices? Your €100 buys less. Low prices? It buys more. You buy MORE when things are cheap, with zero forecasting skill required.
Free to play. No ads, no token, no account needed to start.
What you get asked
The core mechanical advantage of DCA is…
€100 at €50/unit = 2 units; €100 at €25/unit = 4 units. The math tilts your average cost toward the cheap periods, automatically.
What problem does DCA really solve?
Lump-sum investing often wins on paper, but paper doesn't panic. DCA's real edge is that humans STICK to it through crashes.
DCA works best when the schedule is ___, with no skipping scary months.
The scary months are exactly the ones doing the heavy lifting (cheap units!). Automation protects the plan from your feelings.
Match the approach to its nature
DCA and trading aren't enemies. Many pros DCA long-term holdings AND trade a separate, smaller account.
Markets crash 30% two months into your DCA plan. The DCA-correct response is…
Your fixed amount now buys 30% more units. Feeling-safe-again usually returns at higher prices. The plan already knew crashes would come; that's WHY it's a plan. (Never invest money you need to live on. Ever.) 🐜
The rest of this unit
DCA, market cap, tokenomics and earnings: telling investments from trades.