Crypto Glossary

Daily Cost Averaging

Daily cost averaging is a common strategy of buying a small amount of crypto (often Bitcoin) every single day – automatically. While often called “daily”, truth is that it can be done on any recurring schedule of your choice.

The idea is simple…

The market has volatility. Price goes up and down constantly. Most people don’t have the time to sit there track the price fluctuations… much less sit there and try to manually time the market. In fact, in most cases, trying to time the market usually means you get it wrong.

By daily cost averaging, you don’t try to time the market. You just buy a little bit on a regular schedule, no matter what. The net effect is that your average buy-in price tends to average out in your favor.

Daily cost averaging is a smart strategy that removes the guesswork and emotion from when to buy. It is best done using smaller amounts. The best platform to enable this is Coinbase, which enables yo to set up a recurring transaction that will take place automatically. Set it and forget it.

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