Foreign media reports that Binance founder Changpeng Zhao (CZ) recently reiterated the DCA (Discounted Average Cost) investment strategy, stating that it is one of the fundamental concepts long-term investors need to understand. He said that understanding these common terms is crucial for accumulating wealth through investment.

Emphasizing not to chase market timing

CZ's remarks came after discussions arose about whether long-term investors should enter the market during bull or bear markets. He consistently believes that accurately predicting market bottoms is not easy, and repeatedly trying to seize the best buying point is often more difficult to execute than investing in batches according to a plan.

DCA's approach is very straightforward.

DCA refers to investing a fixed amount of money at fixed time intervals without deliberately tracking short-term prices. For example, buying a certain amount of Bitcoin each month, buying more when the price is low and less when the price is high.

Suitable for long-term assets, but not a panacea.

CZ also acknowledges that DCA (Discounted Averaging) cannot guarantee profitability. During periods of heightened bullish sentiment, dollar-cost averaging (DCA) can sometimes underperform a lump-sum purchase; and if the wrong asset is chosen, the strategy itself cannot compensate for misjudgment. Even so, he still believes that this method has historically performed relatively well with long-term assets such as Bitcoin.