How much could your crypto be worth if you had regularly bought a small amount over time?
Try it for yourself
How to set up a repeat transaction
On Uphold, you can set up a repeat transaction easily and quickly.
Tap Repeat transaction.
Pick the frequency for the transaction.
Select when it should start and end.
Label the transaction for future reference.
Confirm your trade.
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Learn more about DCA
Dollar-cost averaging (DCA) is a purchasing strategy which can lead to better results than attempting to time the market. Instead of buying all your funds in one go, the idea is that you break it up into a series of smaller purchases which you make at regular intervals. The goal is to reduce your exposure to market volatility and help lower your purchase costs and increase your returns.
Dollar-cost averaging works by buying the same amount of money into an asset on a regular basis, regardless of the asset’s price. For example, you could purchase $100 worth of Bitcoin once a month, irrespective of market volatility. The asset price will often go up and down, so you may get fewer tokens for your money on some occasions. However, over time this will even out and the average cost per token will often work out more favorably than if you were to try to time your trades.
To calculate the dollar-cost average of your portfolio, divide the sum of total cost by the number of total assets.
Here’s the dollar-cost averaging formula: Total cost divided by total number of tokens = dollar cost average.
In the long term, dollar-cost averaging can:
- Reduce market risk;
- Lower purchase costs;
- Save time otherwise spent tracking asset prices.
It’s a great way to start trading if you’re new to crypto - and we’ve made it even easier for you on Uphold. Set up a regular deposit into an asset today with our automated transaction tool: get all the benefits and none of the hassle.
Note: While DCA has many benefits, it's important to note that it may not be suitable for everyone and doesn't guarantee profit / protect against loss.
The purchase, sale and custody of cryptoassets are regulated by the FCA for anti-money laundering purposes but this does not indicate any approval by the FCA of Uphold’s cryptoasset activities. Cryptoassets are very high risk, speculative investments. When purchasing, selling and/or holding cryptoassets, you will not have access to the Financial Ombudsman Service (FOS) or the Financial Services Compensation Scheme (FSCS) if something goes wrong. You should be aware and prepared to potentially lose some or all of your money. You should carefully consider whether trading or holding cryptoassets is suitable for you in light of your financial condition. Past performance is not a reliable indicator of future results.
Additional risk warnings are contained in Uphold’s Terms & Conditions.
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