Dollar-cost averaging (DCA) is a strategy where you buy smaller amounts of Bitcoin at regular intervals — say, weekly or monthly — regardless of the price. It’s an alternative to buying Bitcoin with a lump sum.
TL;DR: Bitcoin DCA, in plain English
- You invest small amounts regularly
- It helps smooth out the ups and downs of market prices
- Great for beginners — no need to guess the “right time” to buy
- Works best when you stick with it over the long term
- Like any strategy, returns aren’t guaranteed, but it’s a steady, low-stress approach
DCA in action
Below is an example of how Bitcoin dollar cost averaging (DCA) works over time, showing how breaking up your purchases across time can help to even out the price you’re paying.
Chart sourced from River
Should I dollar cost average into Bitcoin?
There are two main reasons you’d look to dollar cost averaging into Bitcoin.
Scenario 1: You have a lump sum to invest
You’ve set aside $5,000 to buy Bitcoin and want the best price. Putting all that money down in one go is quick, but it comes with risks.
In an ideal world, you’d buy Bitcoin every time the price dips and get it at a discount (known as buying the dip). However, as most investors will tell you, timing the market is hard.
Professional traders trying to time the market will look into things like past Bitcoin prices, key crypto indicators, and technical analysis. However, this isn’t beginner-friendly, and past trends never guarantee future performance.
This is where Bitcoin DCA comes in. It’s beginner-friendly because you’re not trying to play the market. By breaking up your purchase over time, you smooth out the price you pay, spreading your risk and taking the emotion, time, and stress out of investing.
Example: You break your $5,000 into 52 weekly payments across the year (at roughly $96 per week).
Scenario 2: You’re starting small
Maybe your budget only allows for spending $15 a week on Bitcoin.
It might not sound like a lot, but that $15 a week adds up to $780 over a year and would have bought you roughly 0.005 Bitcoin, based on the average Bitcoin price over the past year.
At the time of writing, 0.005 Bitcoin would be worth roughly $900, and a 15% return on your investment. It’s easy to see how those numbers can add up over time!
Big players DCA Bitcoin, too!
Bitcoin dollar cost averaging isn’t just for ordinary investors; even large institutions use it.
Strategy (a large software firm) has spent roughly $51 billion to buy 628,791 Bitcoin over its purchasing history. Strategy did this by purchasing Bitcoin in regular increments, helping manage its market exposure and price risk.
The result? It paid an average price of $103,137, which puts Strategy’s total Bitcoin holding value at $115 billion (a ~125% return), based on August 1 2025 prices.
Are there any downsides?
Like any strategy, DCA isn’t perfect:
- You won’t necessarily catch the lowest price: If Bitcoin dips and then quickly rebounds, lump-sum buyers might come out ahead.
- It takes time: You’ll need patience. DCA works best as a long-term approach.
But for most everyday investors, DCA is about confidence and consistency, not chasing quick wins.
Final thoughts
Dollar-cost averaging is one of the easiest ways to buy Bitcoin.
- It helps reduce the emotional highs and lows of crypto.
- It’s a consistent, time-tested strategy.
- DCA is available to every Aussie — whether you’re investing $10, $5,000, or anything in between.
- It won’t always deliver the best returns. If Bitcoin dips and then quickly rebounds, lump-sum buyers might come out ahead.
- To spread your risk, you can also dollar cost average when you buy other crypto, such as when you buy Ethereum, Solana or Dogecoin.
- Ultimately, whether buying through DCA or as a lump, the best strategy depends on your personal risk appetite, financial goals and the amount of funds you have available for investing.
How to buy Bitcoin in Australia?
You can easily buy Bitcoin in Australia with a range of payment options, including:
With bitcoin.com.au, it couldn’t be easier!
