Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals — for example a set sum every week or month — instead of trying to buy everything at the perfect moment.
Why people use it
Crypto is famously volatile, and timing the market is hard even for professionals. By spreading purchases over time, DCA buys more when prices are low and less when they are high, smoothing out your average entry price and removing a lot of the emotion from investing.
What DCA does not do
DCA is a discipline, not a guarantee. It does not protect you from a sustained downturn, and in a market that only rises, investing everything up front would have done better. It simply reduces the risk of putting all your money in at a single unlucky price.
Test it against real data
The best way to understand DCA is to see how it would have played out. Our DCA Calculator runs a plan against real historical prices, so you can compare amounts, frequencies and time periods for yourself.
This guide is general information, not financial advice. Past performance does not predict future results. See our Methodology.