What is DCA (dollar cost averaging) and how to do it in crypto

Reading time: 5 min · Last checked: 2026-10-20

What DCA means

Dollar cost averaging (DCA) means investing the same amount at fixed intervals, for example 50 EUR every Monday, whatever the price. When the price is low your 50 EUR buys more, when it is high it buys less. Over time you end up with an average entry price instead of one lucky or unlucky moment.

Why people use it

It removes the hardest decision, which is when to buy. It also stops you from putting everything in at a local top after a news spike. The trade off is that if prices only go up, a single early purchase would have done better. DCA is about lowering regret, not maximising returns.

What it costs

The fee on each recurring buy matters more than anything else. Some apps charge 1% or more plus a spread on every purchase, others use normal trading fees around 0.1%. With 52 buys a year that difference adds up. We list the fees per exchange on best exchanges for DCA.

How to set it up

Pick an exchange with automatic recurring buys, choose the coin, the amount and the frequency (weekly or monthly is fine for most people), and fund the account by bank transfer. Check the first execution, then leave it alone. If you are still choosing an exchange, start with best exchanges for beginners.

Common mistakes

Buying too often with fixed fees, stopping the plan in every dip, and DCA into small coins that may never recover. Many people stick to Bitcoin and Ether for the automatic part and keep anything else small.