Dollar Cost Averaging (DCA) is an investment strategy where you invest a fixed amount at regular intervals, regardless of the asset's price. This approach helps reduce the impact of market volatility and is especially popular in the cryptocurrency market.

Reduces Market Timing Risk

By spreading your purchases over time, you avoid the risk of investing all your money at a market peak.

Emotional Discipline

DCA removes emotional decision-making from investing by following a consistent schedule regardless of market conditions.

Cost Averaging Effect

You automatically buy more coins when prices are low and fewer when prices are high, potentially lowering your average cost per coin.

Simple Example

Instead of investing $1,200 at once (lump sum), you invest $100 monthly for a year. If the price drops after your initial purchase, your subsequent investments buy at lower prices, improving your overall position.

Use the calculator below to see how a DCA strategy would have performed for your chosen cryptocurrency over different time periods. You can also compare its performance against a lump sum investment strategy.