What Is DCA (Dollar-Cost Averaging)?
DCA — or dollar-cost averaging — is the strategy of investing a fixed amount at regular intervals, regardless of whether the price is going up or down.
Instead of trying to time the "perfect moment" to buy (which no one can do consistently), you spread your investment over time. In months when the price is low, your contribution buys more. In months when it's high, it buys less. The result is a balanced average price — and less stress.
In our view, it is one of the most popular strategies among cryptocurrency investors. Simple, disciplined, and with historically documented results.
Why Does DCA Work Well in Crypto?
Cryptocurrencies are volatile by nature. Bitcoin has dropped 50% in weeks and risen 300% in months. Trying to time the bottom is a game that even professional traders lose.
DCA eliminates emotion from the equation. You set an amount, choose a frequency, and stick to the plan. Historically, investors who did DCA in Bitcoin for 3+ years had positive returns in virtually any time window — even starting at market peaks.
The secret isn't when to buy. It's to never stop buying.
How to Do DCA in Practice
Set an amount that fits your budget
DCA practitioners typically choose amounts that fit within their monthly budget without compromising essential expenses. Values like $100, $300, or $500 are common among those who follow this strategy.
Choose the assets
Bitcoin is historically the most established asset in the crypto market, and Ethereum is the second by market cap. Some investors choose to diversify across different cryptocurrencies, but each person should evaluate their own risk profile.
Pick the cheapest exchange
Every contribution has fees. If you invest $500/month and pay 0.5% more in fees than necessary, that's $30/year wasted. Use our comparator to save on every purchase.
Automate if possible
Some exchanges offer automatic recurring purchases, which makes it easier to maintain discipline. Those who practice DCA consistently tend to achieve more reliable results than those who make sporadic contributions.
DCA vs. Lump Sum — Which Is Better?
Lump sum means investing everything at once. DCA means spreading it over time.
Studies show that lump sum beats DCA in about 66% of cases, because the market tends to rise over the long term — and the sooner you're invested, the more you capture that upside.
But DCA wins in something studies don't measure: peace of mind. Most people can't invest $10,000 at once and watch it drop 30% the next month without panicking. DCA reduces that psychological risk.
What some investors do:
An approach some investors take is to combine both strategies — allocate a portion at once and distribute the rest over months. Each investor should evaluate what makes sense for their situation.
Common DCA Mistakes
Stopping when the market drops
The moment you most want to stop is exactly when DCA works best. Lower prices = more crypto per contribution. The biggest returns come from those who kept investing during bear markets.
Committing more than your budget allows
DCA is about discipline, not aggressiveness. Those who commit too much risk needing to withdraw within a few months, losing the benefit of the long-term strategy.
Ignoring fees
If you do weekly DCA of $50 and pay $2 per transaction, that's $104/year in fees — 4% of your investment. Compare exchange fees and adjust frequency if needed.
Excessive concentration
Putting 100% in a low-cap altcoin, in our view, is closer to a bet than a strategy. Diversification is a widely adopted principle in any type of investment.
Want to buy at the lowest price now?
DCA works best when you pay less with each contribution. Use our comparator to find the cheapest exchange right now.
Frequently Asked Questions about DCA
What does DCA mean?
DCA stands for Dollar-Cost Averaging. It is the strategy of investing a fixed amount at regular intervals (weekly, biweekly, or monthly), regardless of the current price of the asset.
What is the minimum amount to start DCA in crypto?
Most Brazilian exchanges allow contributions starting from R$10 to R$50. In practice, many investors choose amounts they can maintain every month without compromising essential expenses — consistency tends to be more relevant than the amount itself.
Does DCA work in a bear market?
Yes — and that is when it works best. During a bear market, your contributions buy more units at a lower price. When the market recovers, all that accumulation appreciates. Historically, investors who maintained DCA during bear markets had the best long-term returns.
Is it better to do weekly or monthly DCA?
Historical studies show that the difference in returns between weekly and monthly DCA is small in the long run. The factor that most impacts the result tends to be the consistency of contributions, not the frequency. It is worth noting that smaller and more frequent contributions can generate more transaction costs depending on the exchange.
Can I DCA into more than one cryptocurrency at the same time?
Yes, it is possible to apply DCA to multiple assets simultaneously. In the market, it is common to see investors distributing their contributions across different cryptocurrencies according to their risk profile and knowledge. Each person should evaluate what makes sense for their situation.
Is the data in this simulator reliable?
The calculations use real historical market prices. However, the simulator does not consider exchange fees, network fees (gas), or taxes — which can affect the real return. Past returns do not guarantee future results.
Ready to get started?
The best day to start DCA was yesterday. The second best is today. Compare prices across exchanges and make your first contribution at the lowest cost possible.
Legal notice: This simulator uses historical price data for educational and informational purposes. Past returns do not guarantee future results. Cryptocurrencies are high-risk investments — you may lose part or all of your invested capital. CriptoCortex does not make personalized investment recommendations. Always do your own research (DYOR) before investing. Affiliate links may generate commissions for CriptoCortex.