Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
What is DCA?
DCA stands for “dollar cost averaging”. It is a technique used by investors to mitigate the risk associated with buying assets – like cryptocurrencies – at market prices that can be volatile.
When you DCA into an asset, you commit to buying that asset at fixed intervals – like once per week or once per month – regardless of the current market price. Over time, this technique smooths out the UPS and downs of price movements, allowing you to buy the asset at an average price that is lower than if you had bought it all at once.
Why use DCA with Bitcoin?
Bitcoin and other cryptocurrencies can be volatile, and the price swings can be dramatic. If you want to buy Bitcoin but are worried about timing the market, then DCAing into Bitcoin could be a good strategy for you.
By buying small amounts of Bitcoin at fixed intervals over time, you can minimize your risk and take advantage of any dips in the price.
How to DCA into Bitcoin
There are a few different ways that you can go about DCAing into Bitcoin. One popular method is to set up a recurring buy order on an exchange or trading platform that allows you to schedule regular purchases of Bitcoin (or other cryptocurrency).
Another option is to use a service like dollar-cost-averaging.com which automate the process for you by buying small amounts of cryptocurrency on your behalf at regular intervals.
Conclusion: What Is DCA Bitcoin? Decentralized digital currency without central bank.