Yes exactly, with the DCAing method you can start from investing a smaller amount then you keep on maintaining the standard amount and sooner you might get another opportunity which might make you increasingly increase the amount which you allocated to your investment (from investing $15 to investing $20 or $30 in Bitcoin) and other things are it doesn't matter how much you put monthly what matter is how consistent you keep on buying. When you bitcoin of $30 every month a year is =$360 and during the year there might be a month when you will allocate more than $30 that's why you have to keep on buying so you can meet up.
Yes, imagine investing money regularly instead of just saving it in the bank can potentially lead to higher profits. By using the DCA strategy of investing $30 every month, you can earn a profit on your investment. The same example you have given, if you invest $360 in one year using DCA, it’s difficult to predict the value of the investment at the end of the year. But it’s possible that you could earn a decent profit.
Generally speaking the longer that you are in, the more that your earliest of purchases have had opportunties to compound in value, and surely it is not exactly a strict line, but generally speaking the longer the better. So for example if we look over a longer period of time and we go with $10 every week, and since there are 52 weeks in a year, after a year we would have $520 invested, and after 10 years we would have $5,200 invested.
So yeah we can calculate the amount that we intend to invest and then attempt to shoot for that, but we cannot tell exactly how much it is going to be worth based on how much the asset (in this case bitcoin) is going to go up in value.
Another thing that we could do is to create some kind of a spread sheet to project out our anticipated investment in terms of both how much we expect to contribute and outline some estimates of various scenarios regarding how much it might appreciate, and sure we can have some scenarios outlined out as best case scenarios medium case scenarios and worse case scenarios..
Once we put those estimates in place, we could also figure out how much our investment scenarios might also change if we expect changes in our abilities to invest more and we could potentially increase our investment amounts by 20% each year, perhaps if it were to be within our possible budgets.
So maybe if we anticipate that the BTC price will go up about 8% per year and the amount that we invest goes up 20% each year, then the next 10 years might look like this:
Date BTC_Price $ Invested Total$Invested BTC TotalBTC Total$Value1/14/25 $59,999.40 $520.00 $520.00 0.00900009 0.00900009 $540.00
1/14/26 $64,799.35 $624.00 $1,144.00 0.01833352 0.02733361 $1,771.20
1/14/27 $69,983.30 $748.80 $1,892.80 0.02808670 0.05542031 $3,878.50
1/15/28 $75,581.96 $898.56 $2,791.36 0.03835201 0.09377231 $7,087.50
1/14/29 $81,628.52 $1,078.27 $3,869.63 0.04922868 0.14300099 $11,672.96
1/14/30 $88,158.80 $1,293.93 $5,163.56 0.06082384 0.20382483 $17,968.95
1/14/31 $95,211.51 $1,552.71 $6,716.27 0.07325363 0.27707845 $26,381.06
1/15/32 $102,828.43 $1,863.25 $8,579.52 0.08664438 0.36372284 $37,401.05
1/14/33 $111,054.70 $2,235.90 $10,815.43 0.10113401 0.46485684 $51,624.54
1/14/34 $119,939.08 $2,683.09 $13,498.51 0.11687340 0.58173025 $69,772.19
You can see that the first year or two don't really do anything, but the longer that you are in, the more that the value starts to compound upon itself, and even though over 10 years, we barely had a doubling in the price of BTC, we end up getting quite a bit of appreciation in our value since we would have had invested nearly $13.5k, yet the value of our holdings would be close to $70k.. and of course, we can play around with these kinds of numbers to try to figure out if there might be more aggressive or less aggressive investment scenarios but also we can make assessments if we consider the BTC price to go up a lot in value or a little bit in value, and we could have steady anticipated appreciation or maybe we might assume some years to be up and some to be down, yet we might ask ourselves for the purposes of projecting out future BTC price fluctuations does it help us to predict with a lot of granularity or might we be better served by keeping our projection more general and then just adjust it each year after it has played out?