Dollar-cost averaging (DCA) is buying ₹5,000 of Bitcoin every week — regardless of price. It's boring. And it beats 80% of active traders over any 2-year period. Here's the full guide.
Instead of trying to time the market (impossible), you invest a fixed amount at regular intervals. Example: ₹5,000 of BTC every Monday. When price is high, you buy less BTC. When price is low, you buy more BTC automatically. Over time, your average cost per BTC is better than most lump-sum buyers.
If you DCA ₹5,000/week into BTC from Jan 2023 to Jan 2025 (2 years): total invested ₹5.2 lakh. Your average purchase price would be ~$32,000 BTC. BTC hit $100,000 in late 2024. Your ₹5.2 lakh became ~₹16.25 lakh (+213%). No stress, no timing, no trading — just consistency.
Lump sum (investing everything at once) outperforms DCA if you buy at the perfect low. But nobody can predict the perfect low. DCA outperforms lump sum when you buy at the wrong time (near the top). Given that most investors panic-buy near tops, DCA is the safer, more consistent approach for most people.
CoinDCX and Mudrex both offer recurring buy features. Set up: ₹5,000/week into BTC or ETH, auto-execute on a fixed day. Then do nothing. Track in Koinly for tax purposes. The key: don't stop during bear markets — that's when DCA is buying cheapest. Consistency over 2-3 years is the strategy.
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