What is dollar‑cost averaging in bitcoin?

Dollar‑cost averaging means putting the same amount of money into bitcoin on a regular schedule, regardless of the price. Spreading your buys across multiple market highs and lows averages your cost and removes the stress of trying to time the market. It's a way to build a position gradually, and it works best if you believe bitcoin will increase in value over the long term.

Does DCA reduce risk in a volatile market?

DCA reduces "timing risk" by preventing you from guessing the perfect entry point. Buying on a schedule smooths out volatility and helps avoid impulsive decisions during emotional market moments. However, it does not eliminate market risk: think of DCA as a discipline for dealing with volatility, not a guarantee of safety.

How often should I buy when using DCA?

Choose a schedule that balances convenience and cost, such as weekly, biweekly, or monthly. Many bitcoiners time it with their paycheck frequency – their DCA buy happens right after they get paid. To get a meaningful average price using DCA, it is recommended to stick with the strategy for an extended period of time, buying through different market conditions.

How does Bitcoin Well's Recurring Buy work?

Our setup is simple; sign up, connect your bank account, choose your fiat amount and buying frequency. That's it! Your purchases happen on schedule whether markets are up, down, or sideways. You are in full control the whole time. No contracts or commitments; pause, modify or cancel the Recurring Buy whenever you want.

How do I know if my DCA amount is right?

The right amount is one you can comfortably sustain. Easily doing $200 bi-weekly? Bump it to $300. Feeling financially stretched? Drop it to $150. You can always adjust; our platform makes changes simple. The magic of DCA is in starting and staying consistent, not rigidly sticking to a fixed amount.

What if I start dollar-cost averaging into bitcoin at the worst possible time?

People who started DCA at bitcoin's 2017 peak ($20k USD) or 2021 peak ($69k USD) have double-digit ROI today if they stayed consistent. The market timing that feels so crucial in the moment becomes irrelevant over longer timeframes.

What about taxes and complexity?

Our platform handles the record-keeping automatically. Every purchase is tracked with date, amount, and price for easy tax reporting. As a general rule, you only pay taxes when you sell bitcoin for more than you paid. So if you're dollar-cost averaging for years without selling, there's nothing to report on your annual taxes. For specific guidance on your situation and regional requirements, consult with a professional accountant.

Bitcoin DCA Calculator

This bitcoin DCA calculator goes beyond simple yearly averages and retrospective analysis.

See how dollar-cost averaging performs through bitcoin's historical market cycles, including bear markets, accumulation phases and bull runs.

Disclaimer: This bitcoin DCA calculator is an educational simulation tool only. It generates hypothetical scenarios based on values you select and a simplified 4-year cycle model based on historical halving patterns. This cycle framework is a speculative theory commonly discussed in the bitcoin community, but it is not a prediction of future market behavior and should not be relied upon for investment decisions.

The results illustrate how a dollar-cost averaging strategy could behave with the above assumptions; they are not predictions or guarantees. The value of bitcoin and other digital assets can fluctuate significantly based on a variety of factors. You should carefully evaluate your own financial situation and seek independent financial advice before making investments.

Bitcoin price

Live market price

DCA calculator settings

Move the sliders below to set the parameters for the DCA simulation.

Monthly investment amount

$0$0$5,000

Investment timeframe

Market cycle settings

Select the magnitude of the bear market drawdowns and bull market impulses.
These settings are what the calculator uses to simulate the price over time.

🐻 Bear Market Drawdown (peak to trough)

0%-0%95%

🐂 Bull Market Impulse (trough to peak)

+0%+0%+2100%

Fixed values: Accumulation (+15%), Distribution (-10%), Monthly Volatility (±20%)

Set the parameters to start

Adjust the sliders above to see the bitcoin DCA simulation.

Bitcoin DCA calculators often underestimate accumulation

The flawed assumption

Some DCA calculators take today's price and apply a steady annual return across the entire dollar-cost averaging period.

Why this breaks

This assumes every single purchase over the next several years happens at or above today's price level.

Historical trend

Bitcoin has historically moved in cycles with dramatic volatility; it often undergoes significant corrections before reaching new peaks.

The result

The amount of bitcoin that can be accumulated through a DCA strategy is likely understated, as the buying opportunities that volatility creates aren't accounted for.

An example of how this plays out

Let's take a 4-year DCA strategy starting today:

CAGR type calculator

• Takes current price as baseline
• Applies ~20% annual growth
• Every purchase happens at progressively higher prices
• Dollars buy less bitcoin each month

Our calculator's approach

• Accounts for historical volatility patterns
• Models the drawdowns that often occur
• A portion of purchases happen at lower prices
• More bitcoin accumulated during bear phases

The difference can be dramatic; often 50-100% more bitcoin accumulated when you account for both bear and bull market cycles versus steady-growth assumptions.

Bitcoin dollar-cost averaging;
low time preference

Chosen by those who plan in decades, not days.
Steady accumulation compounding over time.
Self-custody to ensure independence.

Future-proof your money.

Set up an automatic bitcoin purchase with a Recurring Buy order:

• Never miss a purchase
• No second-guessing timing
• Set it up once; stack sats on autopilot

Quick account setup • 100% self-custody

Why bitcoin DCA often beats "timing the market"

Almost everyone has looked at bitcoin's price charts and thought:

"If only I had bought at the bottom"

Unfortunately, this type of perfect timing only works in hindsight; even professional traders with years of experience struggle to consistently predict the price movements of bitcoin.

Dollar-cost averaging takes a different approach. The strategy smooths out bitcoin's volatility over time through consistent accumulation.

How to start dollar-cost averaging bitcoin

Practical steps commonly used to begin a dollar-cost averaging strategy.

Choose a sustainable amount

Guidelines:

• Start with what feels comfortable
• Increase later if budget allows
• Consistency beats size
• Even $100/month will compound

Ask yourself: "Can I maintain this amount during a recession?"

Match your paycheck

Optimal timing:

• Weekly paycheck? Weekly DCA
• Monthly salary? Monthly DCA
• Buy with "fresh fiat"
• Make it automatic like rent

Aligning DCA with your income makes it sustainable.

Automate everything

Why automation wins:

• Manual buying relies on willpower
• Life gets busy, markets get scary
• Automation removes human error
• Purchases happen rain or shine

Your stack grows on schedule, every time, without fail.

Start buying

Why start now:

• Waiting costs opportunity
• Consistency compounds over time
• Recurring Buy stacks on autopilot
• Patience today; freedom tomorrow

Time and consistency are central to a dollar-cost averaging approach.

Quick account setup • Cancel anytime

Frequently asked questions

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Bitcoin DCA Calculator

Bitcoin price

Market cycle settings

Cycle position

Set the parameters to start

Calculation methodology & assumptions

Bitcoin DCA calculators often underestimate accumulation

The flawed assumption

Why this breaks

Historical trend

The result

An example of how this plays out

CAGR type calculator

Our calculator's approach

Bitcoin dollar-cost averaging;
low time preference

Set up an automatic bitcoin purchase with a Recurring Buy order:

Why bitcoin DCA often beats "timing the market"

How to start dollar-cost averaging bitcoin

Choose a sustainable amount

Match your paycheck

Automate everything

Start buying

Frequently asked questions

Join the Bitcoin Well Insider

Bitcoin DCA calculators often underestimate accumulation

The flawed assumption

Why this breaks

Historical trend

The result

An example of how this plays out

CAGR type calculator

Our calculator's approach

Bitcoin dollar-cost averaging;
low time preference

Set up an automatic bitcoin purchase with a Recurring Buy order:

Why bitcoin DCA often beats "timing the market"

How to start dollar-cost averaging bitcoin

Choose a sustainable amount

Match your paycheck

Automate everything

Start buying

Bitcoin DCA Calculator

Bitcoin Well's Bitcoin DCA Calculator

Bitcoin price

Market cycle settings

Cycle position(Advanced adjustment)

Cycle position

Set the parameters to start

Calculation methodology & assumptions

Bitcoin DCA calculators often underestimate accumulation

The flawed assumption

Why this breaks

Historical trend

The result

An example of how this plays out

CAGR type calculator

Our calculator's approach

Bitcoin dollar-cost averaging;low time preference

Set up an automatic bitcoin purchase with a Recurring Buy order:

Why bitcoin DCA often beats "timing the market"

How to start dollar-cost averaging bitcoin

Choose a sustainable amount

Match your paycheck

Automate everything

Start buying

Frequently asked questions

What is dollar‑cost averaging in bitcoin?

Does DCA reduce risk in a volatile market?

How often should I buy when using DCA?

How does Bitcoin Well's Recurring Buy work?

How do I know if my DCA amount is right?

What if I start dollar-cost averaging into bitcoin at the worst possible time?

What about taxes and complexity?

Join the Bitcoin Well Insider

Bitcoin DCA calculators often underestimate accumulation

The flawed assumption

Why this breaks

Historical trend

The result

An example of how this plays out

CAGR type calculator

Our calculator's approach

Bitcoin dollar-cost averaging;low time preference

Set up an automatic bitcoin purchase with a Recurring Buy order:

Why bitcoin DCA often beats "timing the market"

How to start dollar-cost averaging bitcoin

Choose a sustainable amount

Match your paycheck

Automate everything

Start buying

Bitcoin dollar-cost averaging;
low time preference

Bitcoin dollar-cost averaging;
low time preference