What is dollar cost averaging (DCA) in crypto?

DCA is investing a fixed dollar amount at regular intervals regardless of price. For example, buying $100 of Bitcoin every week. This strategy reduces the impact of volatility by averaging your entry price over time.

Is DCA better than lump sum investing?

Studies show lump sum investing outperforms DCA about 66% of the time in rising markets. However, DCA reduces downside risk and emotional stress. In crypto's volatile markets, DCA can significantly reduce your average entry during drawdowns.

DCA Calculator

CryptoCompare API

123Switch Tab

Cryptocurrency

Investment per Period (USD)

Frequency

Start DateEnd Date

Configure your DCA strategy and click “Run Backtest”

DCA Calculator

Related Tools