What is Dollar-Cost Averaging (DCA)?
An investment strategy where you buy a fixed dollar amount of an asset at regular intervals, regardless of price.
Dollar-Cost Averaging (DCA) removes the need to time the market. Instead of trying to buy at the bottom, you invest the same amount every week, month, or interval — buying more when prices are low and less when prices are high.
Example:
You invest $200/month in Bitcoin for 6 months:
| Month | BTC Price | BTC Bought |
|---|---|---|
| Jan | $40,000 | 0.005 |
| Feb | $35,000 | 0.00571 |
| Mar | $25,000 | 0.008 |
| Apr | $30,000 | 0.00667 |
| May | $38,000 | 0.00526 |
| Jun | $45,000 | 0.00444 |
Total invested: $1,200 | Total BTC: 0.03408 | Average price: $35,210 vs. a lump sum at Jan price of $40,000.
DCA works best when:
DCA does NOT protect you if the asset goes to zero. It smooths your entry, it doesn't guarantee profit.
Related Calculators
Bitcoin DCA
Calculate your Bitcoin average entry price, total BTC holdings, and unrealized P&L when dollar cost averaging into BTC at multiple price levels.
Ethereum DCA
Calculate your Ethereum average buy price, total ETH holdings, and current P&L when using a dollar cost averaging strategy into ETH.
Polkadot DCA
Calculate your average DOT entry price and projected returns when dollar cost averaging into Polkadot.