Illustration: Chris Gash. Many investors follow the strategy of dollar-cost averaging to invest money in the stock market. But does it always deliver the most bang for the buck?

Dollar cost averaging is a strategy that can help you lower the amount you pay for investments and minimize risk. Over the long term, dollar cost averaging can help lower your investment costs and ...

Dollar-cost averaging works by putting a fixed amount of money in the market at regular intervals rather than one large lump sum. It allows you to buy more low-priced shares when the market is ...

By dollar-cost averaging, or making a consistent investment of $50 each month, you would have ended up with 64.61 shares.

Dollar cost averaging can ensure that you invest your money in equal monthly amounts. You can buy whatever amount of shares you can for $2,000 every month and you can do this for six months.

Learn how dollar-cost averaging works in 2025, its benefits, potential drawbacks, and how to get started with this straightforward investing strategy.

Dollar-cost averaging could also look like if you decide to invest $5,000 of your savings by splitting that cash into five parts, where $1,000 is invested each month for five months.

In both scenarios, dollar-cost averaging provides better outcomes: At $60 per share. Dollar-cost averaging delivers a $6,900 gain, compared to a $2,400 gain with the lump sum approach.

Dollar-cost averaging is one of the easiest techniques to boost your returns without taking on extra risk, and it’s a great way to practice buy-and-hold investing.

Indeed, once you've finished dollar-cost averaging, you may find your final portfolio is too aggressive for your risk tolerance. Here's what you're missing out on.

Dollar-cost averaging bitcoin in an automated manner has emerged as a popular way to “stack sats” among Bitcoiners. BTC $108,670.19 + 1.16 % ETH $2,510.09 + 3.33 % USDT $1.0003 + 0.00 % XRP ...