# DCA (Dollar Cost Average)

#### What is Dollar Cost Averaging?

Dollar Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money into a specific asset at regular intervals, regardless of the asset’s price.\
This approach helps reduce the impact of market volatility, as your purchases are spread out over time — sometimes buying at higher prices, sometimes at lower prices — resulting in an averaged purchase price.

Key benefits:

* **Reduces timing risk** — you don’t need to guess the “perfect” entry point.
* **Smooths volatility** — spreading purchases over time avoids putting all funds in during market peaks.
* **Simple and disciplined** — removes emotional decision-making.

#### How it works in RebalanceNow\.io

With RebalanceNow\.io, you can set up automated DCA strategies for supported exchanges.\
Once configured, the system will automatically purchase your chosen cryptocurrency at the frequency, day, and time you select.

**Steps to create a DCA strategy:**

1. **Create a new DCA (menu) strategy** in your dashboard.
2. **Select a platform** (e.g., Bitvavo).
3. **Select the target trading pair** (e.g., ETH-EUR).
4. **Enter the investment amount** in the quote currency (e.g., EUR, USDT).
5. **Set frequency** (daily, weekly, monthly).
6. **Choose day and time** (in your time zone) for execution.
7. **Save** — your strategy will run automatically.

***

#### Important conditions

* Coins used in your **rebalancing strategies** on the same exchange **cannot** be used for DCA.\
  This prevents conflicts where DCA purchases could interfere with your rebalancing calculations.
* Ensure you have sufficient balance or deposit automation in place.
* You can pause or delete strategies at any time without affecting other strategies.


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