📈 What is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price. It helps spread your risk over time and can smooth out the impact of market volatility. For example, instead of investing €1,000 all at once, you could invest €100 each month for 10 months.
✅ Benefits of Comparing DCA in Bitcoin, Stocks, and Gold
- See performance side by side: Understand how each asset has historically performed under the same investment conditions.
- Identify the most resilient asset: Whether it’s during bull markets or crashes, compare which asset held up best.
- Make informed decisions: Use real data to support your investment strategy and adjust your DCA plan accordingly.
⚖️ Why Compare Bitcoin, Gold, and the S&P 500?
These three assets represent different worlds:
- Bitcoin is a high-growth digital asset with high volatility.
- S&P 500 is a benchmark for traditional stock market performance.
- Gold is a store of value, known for stability and inflation protection.
By comparing them in a single view, you can decide which aligns best with your financial goals and risk tolerance.
❓ Is DCA a good investment strategy?
Yes, especially for long-term investors. It reduces the risk of investing all your money at a market peak and builds discipline by avoiding emotional decisions.
💰 How is the portfolio value calculated?
At each scheduled investment date, the historical price of the asset is used to determine how much you would have bought. The total current value is calculated using today’s price.
🔄 Can I use this tool for other assets?
Currently, the tool supports Bitcoin, S&P 500, and Gold. Future updates may include more cryptocurrencies and market indices.
✅ Benefits of Using DCA
- Reduces the risk of investing at market peaks
- Helps you build long-term investing discipline
- Doesn’t require a large initial capital
- Allows you to take advantage of market dips
- Minimizes emotional decision-making