How much could your investment be worth if you had regularly bought a small amount of your favorite crypto? Find out with our crypto dollar-cost averaging calculator.
Choose an asset, recurring deposit amount, frequency of purchase, and start/end dates, and discover what your crypto holdings would have been using a DCA investment strategy.
Let’s crunch the numbers
Learn more about DCA
What is Dollar-Cost Averaging?
Dollar-cost averaging (DCA) is an investment strategy which can lead to better results than attempting to time the market. Instead of investing all your funds in one go, the idea is that you break it up into a series of smaller purchases which you make at regular intervals. The goal is to reduce your exposure to market volatility and help lower your investment costs and increase your returns.
How does Dollar-Cost Averaging work?
Dollar-cost averaging works by investing the same amount of money into an asset on a regular basis, regardless of the asset’s price. For example, you could invest $100 inonce a month, irrespective of market volatility.
The asset price will often go up and down, so you may get fewer tokens for your money on some occasions. However, over time this will even out and the average cost per token will often work out more favorably than if you were to try to time your trades.
How do you calculate the average dollar cost?
To calculate the dollar-cost average of your portfolio, divide the sum of total cost by the number of total assets.
Here’s the dollar-cost averaging formula: Total cost divided by total number of tokens = dollar cost average
What are the benefits of Dollar-Cost Averaging?
In the long term, dollar-cost averaging can:
- Reduce market risk
- Lower investment costs
- Save time otherwise spent tracking asset prices
It’s a great way to start trading if you’re new to crypto - and we’ve made it even easier for you on Uphold. Set up a regular deposit into an asset today with our automated transaction tool: get all the benefits, and none of the hassle.
Not Financial Advice
Please note that Uphold and its affiliates do not provide investment, tax, or legal advice. This article is for informational purposes only and takes no account of particular personal or market circumstances, and should not be relied upon as investment, tax, or legal advice. For investment, tax, or legal advice and before taking any action you should consult your own advisors. Note that digital assets such as cryptocurrencies present unique risks for investors. Please see our before investing.