Dollar cost averaging: The simplest strategy to build your wealth

Dollar cost averaging is one of the most successful investment strategies for growing your crypto wealth.

What is dollar cost averaging?

DCA is a strategy that works for both billionaires like Buffett and first-time investors. While the name may sound like financial jargon, all dollar cost averaging means is choosing an asset, deciding how much you can afford to invest, and buying it at regular intervals. Simple.

For example, imagine you decide to invest €100 in Bitcoin every two weeks. It does not matter whether the price goes up or down; you buy the same amount each time. 

When the price dips, your €100 buys more Bitcoin, and when it rises, it buys less. 

Over time, this averages out your purchase price and helps you accumulate more Bitcoin without trying to predict market highs or lows.

Why is it good

Mainstream finance promotes a brutal culture of long hours, total dedication to corporate hierarchy, and high stress. In-house analysts at big institutions often have a ride-or-die approach to what is known as market timing, that is, knowing the right moment to buy. 

But as numerous financial crises and ruined careers have shown, this guesswork comes at a cost —and, on average, it is not profitable. Fortunately, strategies like DCA make saving stress-free.

Sometimes the opinions of two billionaires can help put things in perspective. Buffett might be worth just shy of €137 billion, but, as Elon Musk said, his job —reading company reports —is kind of boring. 

While Buffett says those who are prepared to read financial reports for days at a time should go ahead, he recognises that it is not for everyone. This is why he recommends DCA for everyone else.

For those who have been watching the markets in recent years, one thing is clear: uncertainty has become the norm. Bitcoin has seen sharp corrections and substantial recoveries as global interest rates, institutional adoption, and regulatory shifts continue to shape the market. 

Dollar cost averaging remains one of the most reliable ways to navigate this volatility. By committing to regular purchases over time, you smooth out price fluctuations and stay focused on long-term growth. This steady approach is the same principle behind many of the world’s most trusted savings and investment plans.

Straightforward investing

While Buffett might be known as anti-crypto, that does not mean the no-nonsense Nebraskan’s recommended investment strategy is as well. The crypto markets experience more than their fair share of volatility, and that can be frightening to some investors.

Regular investment intervals can significantly reduce the effect of short-term volatility, making DCA one of the simplest and most resilient ways to build a crypto position over time.

Crypto is about giving people control over their finances, but the initial learning curve can sometimes prevent effective investing. This is where DCA stands out. The control that DCA gives you over how much and how often you buy allows your knowledge to develop in tandem with your investment.

In a fast-moving world, most people do not have the luxury of monitoring their assets around the clock. That is why Bitwala offers a monthly savings plan for Bitcoin and Ether. 

All you need to do is choose how much and how often to invest. After that, set it, forget it, and let your wealth accumulate.