Determine your average entry price when buying an asset in smaller chunks as the price drops. DCA is the most effective way to manage risk in volatile markets.
New Average Entry Price
$0.00
Total Tokens Accumulated
0.0000
Catching the exact "bottom" of a crypto dip is nearly impossible. Instead of risking all your capital on a single entry point, DCA allows you to scale into a position as the price drops.
Because you buy more tokens when the price is lower, your average entry price decreases faster. This means you need a smaller bounce in price to return to profitability.
Imagine you have $10,000 to buy Bitcoin.
Lump Sum: Buy $10k at $60k. If price drops to $50k, you are down heavily and must wait for $60k to break even.
DCA: Buy $2k at $60k, $2k at $55k, $2k at $50k. Your average entry is now around $54k. You break even much sooner!
Use the table generated above. Log into your exchange (like Binance or Bybit) and set "Limit Buy" orders at the specific Target Prices for the corresponding USD amounts.
This calculator uses a Price-based step DCA. Time-based DCA (e.g. buying $100 every Monday regardless of price) is another popular method for long-term holders.
Download the complete quantitative guide: Position Sizing Formulas, Prop Firm Drawdown Rules, and MQL5 Parameter Cheat Sheets.
