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<\/figure>\n\n\n\nDCA removes timing as a source of error. Over a multi-year horizon in crypto, a weekly or monthly DCA into Bitcoin has historically outperformed approximately 90% of attempts at active timing by the same investor over the same period.<\/p>\n\n\n\n
Where DCA underperforms<\/h2>\n\n\n\n
In persistently rising markets, lump-sum investment outperforms DCA by definition. If you have $12,000 to deploy and the asset rises monotonically over the next twelve months, deploying all of it on day one produces a higher return than spreading it across twelve monthly purchases. This is the case academics use to argue against DCA, and it’s mathematically correct. The problem is that you don’t know in advance whether the next twelve months will be a persistent uptrend or a 60% drawdown followed by a recovery. DCA loses a small amount of return in the first scenario and saves a large amount in the second, which is a favourable expected-value trade for most investors.<\/p>\n\n\n\n
A reasonable DCA approach for crypto<\/h2>\n\n\n\n
Pick a fixed amount that’s small enough to be sustainable for at least twelve months and that doesn’t disrupt your other financial obligations.<\/p>\n\n\n\n
Choose a frequency \u2014 weekly or monthly are both fine. Automate the recurring purchase via the exchange’s scheduled buy feature. Don’t change the schedule based on price action. The point is to remove the decision, not to add a new one.<\/p>\n\n\n\n
When to break the pattern<\/h2>\n\n\n\n
Two cases. Tax-loss harvesting at year-end, where a tactical adjustment can reduce tax liability without changing the underlying thesis. And generational drawdowns \u2014 Bitcoin at $15,000 in late 2022, for example \u2014 where the asset is trading at a structurally low price relative to its long-term trajectory. Outside those cases, the discipline is the strategy.<\/p>\n\n\n\n The most successful crypto investors over five-year horizons are not the ones with the cleverest entries. They’re the ones who kept buying through the cycles when everyone else stopped.<\/p>\n","protected":false},"excerpt":{"rendered":" Dollar-cost averaging is the strategy nobody finds exciting and almost everyone should be using. The reason is not that DCA produces the highest possible return \u2014 it doesn’t \u2014 but that it produces near-optimal returns for the actual human behaviour of the people executing it. The strategy that you can stick to through a fifty […]<\/p>\n","protected":false},"author":1,"featured_media":256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n![\"\"](\"https:\/\/uabexchange.com\/eu\/wp-content\/uploads\/2026\/07\/1070-1-13.png\")
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