Dollar-cost averaging is the process of making purchases of Bitcoin (or any crypto) on a fixed or regular schedule, regardless of its current trading price.
This is done by dividing the total investment amount across periodic purchases.
What are the benefits of dollar-cost averaging?
- It takes the guesswork out of timing the market.
- It doesn’t require a sizable upfront investment.
- It enforces buying smaller portions of Bitcoin, limiting your exposure to volatility.
- When the price is low, your dollar buys you more.
What are the disadvantages of dollar-cost averaging?
- It takes time to build your desired Bitcoin position.
- It lowers your chance of buying at exact bottoms.
- When the price is high, your dollar buys you less.
Dollar-cost averaging in action
The example below illustrates the effectiveness of buying AUD 50 worth of Bitcoin per week over 3 years, from July 2022 to June 2025.
*Prices shown are based on historical data between 1 July 2022 and 30 June 2025. Past performance is no guarantee of future results. Cryptocurrency is a volatile asset. Capital at risk.
Recurring Buy on Independent Reserve
Independent Reserve has a feature called Recurring Buy that allows you to create automated strategies to dollar-cost averaging into bitcoin or your preferred crypto.
