Educational
Beginner
May 1, 2025

What Is Dollar Cost Averaging?

Timing the market is hard, especially with volatile assets like Bitcoin. Dollar cost averaging offers a simple way for Australians to invest regularly and build confidence over time.

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What Is Dollar Cost Averaging?

Dollar cost averaging, or DCA, is an investment strategy where you purchase a fixed amount of an asset at regular intervals, regardless of the current market price. Instead of trying to time the market, DCA smooths out your purchase price over time by spreading your investment across different price points.

For example, you might invest $100 into Bitcoin every two weeks rather than spending $1,200 all at once. Sometimes you’ll buy when the price is high, other times when it’s low, but overall you reduce the impact of short-term volatility.

Why DCA Works for Bitcoin

Bitcoin’s price history is marked by sharp highs and deep corrections. While the long-term trend has been positive, short-term timing is difficult — even for experienced investors.

Dollar cost averaging offers several benefits:

  • Reduces timing risk by spreading purchases across market conditions
  • Builds consistency with a simple, repeatable investment routine
  • Minimises emotional decision-making by removing the need to react to every price swing
  • Supports long-term growth by steadily building your Bitcoin position
    For Australians new to crypto, DCA is a practical entry strategy that avoids the pressure of trying to “buy the dip.”

How to Start DCA with Bitcoin

Let’s say you choose to invest $50 in Bitcoin every Monday using Elbaite. Over four weeks, your investment might look like this:

  • Week 1: BTC at $70,000 → 0.000714 BTC
  • Week 2: BTC at $65,000 → 0.000769 BTC
  • Week 3: BTC at $60,000 → 0.000833 BTC
  • Week 4: BTC at $68,000 → 0.000735 BTC

Each buy is automatic or planned, not timed to market sentiment. Over time, your average entry price reflects a blend of market levels rather than one fixed point.

When Is DCA a Good Strategy?

Dollar cost averaging is well suited to:

  • New crypto users building confidence
  • Long-term investors who want to accumulate steadily
  • Anyone on a regular income looking to automate part of their investment strategy
  • Buyers avoiding price speculation or short-term trading

DCA works best when you believe in the long-term value of Bitcoin and want to build a position without stressing over day-to-day movements.

Why Self-Custody Still Matters

Even when using DCA, it’s essential to maintain control over your assets. Buying Bitcoin regularly means nothing if your crypto is held by a third-party platform with control over your keys. Self-custody ensures:

  • Only you can access your Bitcoin
  • No platform can freeze, misplace or mismanage your funds
  • Your investment remains fully portable and verifiable

This principle aligns with the core philosophy of Bitcoin — financial freedom with personal responsibility.

The Elbaite Advantage for DCA in Australia

Elbaite is Australia’s award-winning, fully regulated crypto exchange founded in 2017. It is the only platform that lets Australians invest their way, whether through:

Every Bitcoin purchase on Elbaite can be sent directly to your self-custody wallet — mobile, hardware or desktop. Prefer to start with on-platform storage? That’s available too. You’re never locked in, and can switch to full custody when ready. With 1:1 asset storage, onshore security, and compliance with Australian regulations, Elbaite is the secure and flexible choice for DCA investors.

Conclusion: Invest Consistently, Store Securely

Dollar cost averaging is a smart way to reduce stress and build your Bitcoin stack over time. Whether you’re just starting or looking for a disciplined approach to grow your holdings, DCA offers a path forward without needing to predict the market. Start with Elbaite today and experience secure, self-custody trading designed for Australians who want to invest their way.

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Andre - Elbaite Client

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