For this study, MyProfitFactor applies the same hypothetical $100 purchase on the first available daily candle of every calendar month. The charts use actual BTCUSDT and ETHUSDT spot candles from 1 January 2024 through 19 September 2026.
What DCA does—and what it does not do
Dollar-cost averaging spreads purchases across time. More units are acquired when price is lower and fewer when price is higher. This smooths the entry price, but it does not guarantee profit, protect against a permanent decline or remove the need to choose a suitable asset and custody method.
A reproducible monthly framework
Fixed amount
Invest the same amount every month. Changing it after rallies or sell-offs turns the test into discretionary timing.
Fixed date
Use the first available daily candle of each month. A different recurring date is valid, but it must be chosen in advance.
Spot only
The example uses unleveraged spot exposure. Borrowing changes both the mechanics and the loss profile.
Separate assets
BTC and ETH are calculated independently. A portfolio allocation needs its own target weights and rebalancing rule.
Review, do not improvise
Review the thesis and custody periodically, while keeping the purchase rule stable between reviews.
Keep records
Track date, execution price, fee, units purchased, total units and average cost.
Real BTC and ETH candles with every monthly purchase
Each yellow marker is one $100 purchase at that day’s close. The dashed yellow line shows the final average acquisition cost for the full sample.
Bitcoin · BTCUSDT · 1D
2024-01-01 — 2026-09-19 · UTC
Ethereum · ETHUSDT · 1D
2024-01-01 — 2026-09-19 · UTC
How to read this sample
The same schedule produced different outcomes for BTC and ETH because their paths differed. A rising final price helped both examples, while purchases made near local highs raised the average cost. A lump-sum investment at the beginning would have benefited more from the early advance in this particular window, but it would also have concentrated all timing risk on one day.
Where DCA can disappoint
The asset keeps deteriorating
Regular purchases compound exposure to an asset whose fundamentals or market structure may have weakened.
The horizon is too short
Several purchases near a cycle high may remain underwater for months or years.
Fees are ignored
Small frequent orders can lose efficiency when trading and withdrawal fees are high.
Custody is weak
A disciplined schedule does not protect funds held on an unsafe account, exchange or wallet.
A practical implementation checklist
- Choose the asset and write down why it belongs in the plan.
- Set the amount, frequency and execution date before the first purchase.
- Define where the asset will be held and how withdrawals will be handled.
- Record every order and calculate the fee-adjusted average cost.
- Review the thesis on a schedule—not after every volatile day.
The useful part of DCA is discipline, not certainty
DCA is most coherent when the investor has a long horizon, stable cash flow, a researched asset and a secure custody process. The method manages entry timing; it does not answer whether the asset deserves to be owned.
Data source
Binance Spot REST API · This is a transparent historical illustration, not a promise or a complete backtest.