What is Dollar-Cost Averaging in Crypto Trading?

• DCA refers to buying a fixed amount of crypto on a schedule.
• This strategy avoids the “waiting for the best time” dilemma.
• DCA is mainly used to spread entry prices over time rather than relying on a single purchase date.
• DCA does not eliminate market volatility or guarantee returns.
• Fees can matter more with DCA, as it involves more trades over time.

Key takeaways: DCA is a budgeting-based approach to buying crypto over time. It’s commonly used in volatile markets to avoid making one large purchase at a single price. It is also used by users who want to invest a fixed amount each month. DCA does not remove market risk, as this is one of many buying strategies.

Dollar-cost averaging (DCA): buying a fixed dollar amount of a crypto asset on a schedule.
Lump-sum buy: buying a larger amount of crypto in one transaction.
Recurring purchase: a platform feature that automates repeat buys on the user’s schedule.
Timing risk: the risk of buying right before a price drop, or selling right before a price rise.
Volatility: how quickly and significantly prices move up and down.

DCA is a simple buying approach and is best explained with an example. Instead of buying $1,000 worth of crypto today, a user might buy $250 per week for four weeks. The goal is to spread out the entry point over time.

Crypto prices can move quickly. With DCA, a user buys through both higher and lower prices over time. This results in an average entry price based on the schedule. This can make the process feel more structured for users who prefer a routine. It avoids the pressure of picking the “right moment” to buy.

Many Canadians use DCA because it matches how people budget (for example, buying a small amount of crypto each week or each payday). It can be a practical tool for smaller deposits and repeat buys, especially on platforms that support common CAD funding methods, like Interac e-Transfer.

DCA is designed to reduce timing risk, but it is not a “safer” buying strategy. If a crypto asset’s price declines over a long period, spreading buys over time will not prevent losses. A structured DCA approach may help some users maintain consistency in their purchasing schedule. However, it does not make a volatile asset non-volatile.

A lump-sum buy means users get full exposure immediately to the crypto asset they want at one price. DCA means the user’s exposure is spread out over time and at a range of prices. Neither approach is “better”; they are just two different ways to buy crypto.

No. DCA is not a guarantee, nor does it protect against losses. It is simply a purchasing pattern that can reduce concerns over short-term price movements. It can also help users stick to a repeatable buying routine.

DCA involves the same cost categories as any other crypto buying activity. Ndax lists a flat trading fee of 0.20% on all buy and sell orders on its published fee schedule as of February 2026. A flat trading fee means the same percentage rate applies to each trade, regardless of size or order type.

Because DCA typically means more individual buys, users should be mindful of the fee structure and minimum trade sizes.

Yes. Ndax users can set up an “auto invest” feature. This consists of recurring purchases daily, weekly, or monthly, starting as low as $1. On Ndax, the DCA-style approach is done by setting a recurring purchase schedule for a crypto asset and the CAD amount.

The platform executes those instructions automatically on the selected cadence, whether daily, weekly, or monthly.

Yes. DCA has no relationship with how crypto is stored. Storage is a separate decision (custodial platform account vs. self-custody wallet).

Overcommitting is the most commonly cited mistake to avoid. In this case, users select an amount to invest that is unrealistic to maintain. Other mistakes include making many small buys without understanding the fee impact, and confusing DCA with a guarantee.

Another mistake is changing the schedule frequently based on short-term headlines. This defeats the purpose of using a repeatable approach.

Is DCA only for beginners?
No. DCA is used by all types of investors because it’s a simple, repeatable way to buy crypto over time.

Can I DCA with small amounts in Canada?
Yes. DCA purchases on Ndax can start as low as $1.

Do users need to “time the market” when using DCA?
Not really. DCA is designed to reduce the need to pick a single entry point.

Does DCA remove crypto volatility?
No. DCA changes how users enter the market. Volatility still exists.