DCA vs lump sum in crypto: compare them on real prices
Short answer
Take the same total amount and the same start date. Buy it all on day one (lump sum), or split it into equal weekly or monthly buys (DCA). Compare the value today and, just as important, the worst fall from a high along the way. On past Bitcoin prices lump sum often ended higher when prices rose, while DCA usually had a smaller worst drop; it depends heavily on the start date.
- Pick a start date and an amount.
- Lump sum: buy everything on the start date.
- DCA: split the same total into weekly or monthly buys.
- Compare value now and the worst drop for both.
- Try several start dates, including a market top.
Copy-paste code
DCA average cost
average price paid = total money in / total coins bought
(each buy: coins = amount / that day's price)Good to know
The result depends a lot on the start date: try several.
Information only, not financial advice.
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Is DCA better?
Not always. It spreads the timing risk; lump sum is ahead more often when prices rise over the period. Neither is a prediction.
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