DCA: best strategy for Bitcoin and Altcoins


By Yaroslav Krasko Updated November 11, 2021
BikoTrading Academy

Trading is not a simple type of earning, especially if you are a beginner, or even have been on the market for a long time, but still do not understand how to trade and constantly lose money.

In this article, we want to share with you one of the best strategies used by global investment funds, namely the DCA strategy.

In the first part of the article, we will briefly explain what the DCA strategy is.

And in the second part, we will look at an example of how much you could earn using the strategy of dollar cost averaging for crypto and stocks.


What is DCA?

Simply put, it is a strategy in which you buy an asset for the amount you set each month, week, day, or other period chosen.

For example, you want to invest money in Bitcoin, Ethereum or another cryptocurrency. Your salary or monthly income is $ 2,000. You are willing to invest 10% ($ 200) of your monthly income. Additionally, you have determined that you will invest on the 1st of each new month, regardless of whether the price rises or falls. It’s simple, this is the strategy – DCA.

But we must warn you that this strategy does not give a 100% chance that you will earn or not lose your own money, as there are many other factors that can affect the outcome. As an example, the first thing that can happen is the choice of an asset, no one can guarantee that by investing in some unknown altcoin you will not lose all your investments.

At the same time, if you look at the long term, assets such as Bitcoin, S&P 500 and Dow Jones Industrial Average indices are a good option for investment.

dca for crypto

Bitcoin chart, the price has been rising for more than 10 years, is constantly updating its lows and highs.

dca crypto vs stocks

S&P 500 chart, the price of the index has been constantly rising for about 100 years.

How much can you earn on this?

People often ask the question: does dollar cost averaging work with bitcoin, crypto or S&P 500? Yes, of course, it works and now we will check it!

Let’s move on to the most interesting, let’s for example calculate how much you could earn using this strategy for the last 5 years by investing in S&P 500, Bitcoin, Ethereum and BNB. To do this, use a DCA calculator.

Bitcoin DCA

For 5 years, if you invested $ 200 in bitcoin every month, your net profit would be $ 90,000.


Ethereum DCA


At the same time, if you invested in Ethereum, your net profit would be about $ 300,000

Binance (BNB) DCA

dca for binance coin

Or, if you decided to invest in such a promising altcoin as Binance, you would get more than $ 1 million, investing only about $ 10,000. Of course, this is a riskier option to invest, but it would bring its investors extraordinary profits.

dca for stock market

And the last example, for more conservative investors – S&P 500. With an average annual growth of 8%, your net profit would be almost $ 2,800.


Dollar cost averaging works well for most assets, including Bitcoin, Altcoins and indexes as the S&P 500. The examples presented in this article illustrate this perfectly. Dollar cost averaging could have different variations. For example, you can invest not every month, but for example every week, or invest every day that closes with a fall, as a rule, such modifications bring a much higher return.

In addition to all of the above, it is worth noting that the cryptocurrency market has grown significantly and will not bring the same results as before, but this is definitely the best option if you do not understand what to do and where to start in the financial markets.