Reduce risk: The DCA strategy helps investors reduce risk and preserve capital by dividing their investments into smaller portions. It provides added liquidity and portfolio management. When the market drops, it can be viewed as an opportunity to buy. Therefore, DCA can promote the potential for long-term investment profits during the period when prices start to rise.

Optimize investment costs: When you position yourself to buy at a low price, your profit margin will be high when prices recover or grow. It is not easy to predict market volatility in the future, and the DCA strategy will help you have enough capital to buy the cheapest positions possible.

Limit emotional investment: The clear difference between a seasoned investor and a beginner is the firmness of their actions. Using DCA in trading will prevent you from being emotionally influenced by price fluctuations. This is a mistake that most new investors make.