Definition ∞ Periodic accumulation describes a strategy where an investor regularly purchases a fixed amount of a digital asset over a set period, regardless of its current price. This approach, often known as dollar-cost averaging, aims to reduce the impact of market volatility by averaging out the purchase price over time. By consistently acquiring assets, individuals can build their holdings without attempting to time market fluctuations. It is a long-term investment strategy focused on consistent growth rather than short-term gains.
Context ∞ Periodic accumulation is a widely discussed investment strategy in cryptocurrency news and financial advice, particularly for new investors seeking to enter volatile markets. Articles often highlight its benefits in mitigating risk and simplifying investment decisions. The strategy is generally recommended for those with a long-term outlook on digital assets, providing a disciplined approach to building a portfolio amidst market cycles.
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