Glossary
Dollar-Cost Averaging (DCA)
Buying a fixed amount at fixed intervals so your average price smooths out volatility.
Dollar-cost averaging means committing the same amount on a schedule, regardless of price. It converts an all-or-nothing entry decision into many smaller ones.
It reduces the damage of buying at the top, which is its real purpose. It also lowers the damage of buying at the bottom, because much of your capital sits in waiting rather than in the asset.
The method suits assets you already believe in and can leave alone. It is not a strategy for tokens you need to enter at a specific level, and it accumulates positions in assets that keep falling for reasons that have nothing to do with entry price.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.