What Is DCA and Why So Many Crypto Traders Use It

Dollar Cost Averaging (DCA) is a strategy where you invest a fixed amount of money at regular intervals, regardless of the current price. Instead of trying to buy the bottom, you let consistency do the work.

How DCA works in crypto

Imagine you buy $100 of BTC every week:

• When price is high, you buy fewer coins
• When price is low, you buy more coins
• Over time, you get an average entry price that reflects the market, not a single lucky (or unlucky) buy

Why beginners like DCA

DCA is popular because it:

• Removes the need to perfectly time the market
• Helps avoid emotional “all in” decisions
• Works well with long-term conviction in a project or asset

Test DCA before committing real money

A DCA calculator lets you answer questions like:

• What if I invest weekly vs monthly?
• How much would I have after 6, 12, or 24 months?
• What happens if price goes sideways for a year?

You can try these scenarios in the SatsTally DCA Calculator and see your average entry price and potential returns.