Buying a fixed sum on a schedule
The first method takes one decision away from you: when to buy. You pick a sum and a date, say $100 on the first of every month, and buy whatever that sum gets you at that day’s price.
When the price is low the $100 buys more coins. When it’s high it buys fewer.
Take a made-up coin over five months.
You paid $500 for 13 coins, so each cost you $38.46 on average. The average of the five prices was $41. The same $100 bought more coins in the low-price months, which is why you paid less than the average price.
The price coming back to $50 is part of the made-up example, and a schedule promises no recovery.
The method’s real value is that you no longer have to guess when to buy. It also spreads one big nervous purchase over many small dull ones.
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