A simpler way to invest in volatile markets
Dollar-cost averaging removes the most stressful decision in crypto — when to buy. Instead of trying to call the bottom of every dip, you commit to a set AUD amount on a set schedule and let consistency do the heavy lifting. When the market falls your fixed buy picks up more units; when it rises you buy fewer. Over a long enough horizon, your average cost per unit lands somewhere in the middle of the price range, far from either the top or the bottom.
Why DCA suits Australian investors
Most Australian exchanges now support recurring AUD buys directly from your bank account, often with no fee on the deposit and a flat percentage fee on the buy itself. That turns a complex strategy into a 60-second setup. It also spreads buys across multiple tax years, which can help with CGT planning when you eventually sell — particularly given the 12-month CGT discount available on parcels held longer than a year.
How to choose your inputs
- Amount per buy: a number you genuinely won't miss from your weekly budget. The strategy only works if you keep going through a 50% drawdown.
- Frequency: weekly captures more volatility than monthly, but the difference is small over years. Pick whatever matches your pay cycle.
- Average buy price: for back-testing, take the average of the start and end price of the period — or pull the 7-day chart on a coin page to eyeball a mid-range number.
- Exit price: leave blank to use today's live AUD price, or type in a target to model "what if Bitcoin hits A$200k?".
What to do with the result
A positive number is encouraging but it's not a forecast — past performance doesn't predict future returns. Use it as a sanity check on the strategy rather than a promise of profit. When you do sell, run the profit through the profit calculator for after-fee P&L and the Australian tax estimator for a quick CGT view.