The term dollar cost averaging refers to investing in a asset over time, an example of this would be buying gold or silver or stocks or crypto ( such as $BTC ) over time. This allows an investor to slowly over time build up a portfolio.
There are many forms of dollar cost averaging. One form is buying a certain amount of an asset over time at any price and another form is buying a asset or dollar cost averaging into an asset over time when the price of this asset pulls back ( drops in price ).
The second form of dollar cost averaging in my opinion is the better option, essentially buying an asset on price declines, commonly referred to as pullbacks in the market. A good example of this is dollar cost averaging more during price declines and market recessions.
This allows an investor to then reduce there cost average over time and pause investing during strong market conditions. Often a good time to what I refer to as trim a market portfolio.
