Average Cost Basis vs Dollar-Cost Averaging / DCA
Quick comparison to help you distinguish these two crypto terms.
Average Cost Basis
intermediate
fundamentals
The average purchase price of an asset across multiple transactions, calculated by dividing total investment cost by total units owned, used for determining capital gains and tax liability.
Read full definitionDollar-Cost Averaging / DCA
beginner
strategy
Dollar-cost averaging is an investment strategy where you invest a fixed amount at regular intervals regardless of price, reducing the impact of market volatility on your overall purchase cost.
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