DCA Strategy Seen as Helping Investors Mitigate Cryptocurrency Market Volatility Risks: Here's the Explanation

Jakarta, VIVA – Amid the cryptocurrency market’s recent tendency to move within a limited or sideways range, a consistency-based investment strategy like Dollar Cost Averaging (DCA) is once again becoming relevant, particularly for novice investors aiming to build portfolios gradually without being influenced by short-term volatility.

Indodax Vice President Antony Kusuma stated that such market conditions can be utilised as an opportunity to implement more disciplined and measured investment strategies.

“In sideways market conditions, many investors tend to wait and see or even try to guess the lowest point. However, a strategy like Dollar Cost Averaging can be a more realistic approach, as it does not rely on market timing,” said Antony, quoted from his statement on Wednesday, 29 April 2026.

DCA is an investment approach or strategy in which investors purchase assets routinely with the same amount over a certain period, without depending on price conditions. This approach allows investors to accumulate assets gradually while helping to dampen the impact of price fluctuations.

“With this approach, investors actually have the opportunity to accumulate assets more optimally when prices correct, so the portfolio can be better prepared when the market turns bullish, and investors can enter the market consistently without excessive emotional pressure,” said Antony.

Furthermore, he added that this strategy can help novice investors manage risks. When prices fall, investors potentially acquire more assets, while when prices rise, purchases continue with smaller amounts. This mechanism naturally helps create a more balanced average purchase price while opening up potential portfolio growth in the long term.

Additionally, DCA can help build more disciplined investment habits and reduce the tendency for emotion-based decision-making, which is often a challenge for novice investors. Nevertheless, Antony reminded that this strategy still carries risks and needs to be adjusted to each investor’s financial situation.

“DCA can help investors manage volatility risks, but it does not eliminate risks entirely. Investors still need to use cold funds and ensure the strategy used matches their individual risk profiles,” he added.