Doesn’t eliminate risk – Though DCA is a good strategy to mitigate volatility in buying cryptocurrency, it doesn’t remove risk. You can employ DCA and lose money because prices aren’t guaranteed to keep going up. The DCA examples provided are for Bitcoin, which has a longer history and clearer value proposition that most other cryptos. Using DCA for a speculative coin won’t mitigate inherent weakness in its design or use case.
Requires Patience – As mentioned above DCA is the slow and steady tortoise like approach to investing in crypto – it requires patience. This might seem frustrating, especially when Twitter is full of people bragging about massive dramatic profits during bull markets.
Best during a Bear Market – Cost Averaging means that you’ll never time the exact bottom of the market, and when the market is experiencing surging prices, a lump sum investment would likely prove more profitable. The whole point of DCA is that it is impossible to know with certainty when conditions are right for a single entry, so you’ll just have to accept that you won’t fully appreciate upswings, but will benefit once you’ve eventually been through both a bear and bull market.
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