Question 1

What is dollar-cost averaging (DCA)?

Accepted Answer

Dollar-cost averaging means investing a fixed amount on a regular schedule — for example $100 every week — regardless of price. It removes the pressure of timing the market and smooths your average entry price over time. It's the most common way people accumulate Bitcoin from their income.

Question 2

Is DCA better than investing a lump sum?

Accepted Answer

It depends on whether you already have the money. If you have a lump sum available today, historically deploying it all at once has beaten DCA in strongly rising markets like Bitcoin's, because your money starts working sooner. But most people don't have a large lump sum — they invest income as it arrives, which is DCA by necessity. DCA Butler shows both side by side so you can see the gap for any period.

Question 3

How often should I buy — daily, weekly, or monthly?

Accepted Answer

Over long periods the difference between daily, weekly, and monthly buys is small, because they all average into the same long-term trend. More frequent buys smooth your entry price slightly more but can mean higher cumulative fees on some exchanges. You can backtest all three frequencies here and compare the results directly.

Question 4

What is the Bitcoin Power Law?

Accepted Answer

The Power Law is a model, formalized by physicist Giovanni Santostasi, in which Bitcoin's price grows as a power of time since inception. It explains about 96% of Bitcoin's price variance over more than a decade and is grounded in network-adoption effects. DCA Butler uses it to define 'fair value' and the floor/ceiling bands that drive smart-DCA timing.

Question 5

Can this predict Bitcoin's future price?

Accepted Answer

No. The Power Law and Rainbow models describe Bitcoin's historical trend with high statistical fit, and the probability outlook projects a distribution of outcomes assuming that trend continues. But past performance does not guarantee future results, and any model can break if Bitcoin's adoption or market structure changes fundamentally. Treat the forecasts as scenarios, not predictions.

Question 6

When should I take profits or sell?

Accepted Answer

That's a personal decision based on your goals and risk tolerance, not something a backtester can decide for you. A common approach is to sell in increments as price rises into historically expensive zones, rather than trying to call the exact top. DCA Butler lets you set sell multipliers per valuation band so you can test a rules-based profit-taking plan against history.

Question 7

What are sats?

Accepted Answer

A satoshi (or 'sat') is the smallest unit of Bitcoin — there are 100 million sats in one BTC. Because most people accumulate fractions of a Bitcoin, it's common to think in terms of 'stacking sats.' DCA Butler shows both your BTC and your total sats stacked in the results.

Question 8

Is DCA Butler financial advice?

Accepted Answer

No. DCA Butler is a free educational backtesting and modeling tool. It shows what historical strategies would have returned and projects scenarios from public models. It is not financial advice, and past performance does not guarantee future results. Always do your own research and consider your personal situation.

Question 9

How does DCA Butler make money?

Accepted Answer

DCA Butler earns affiliate referral fees when users sign up for the exchanges we recommend (River, Swan, Strike). You pay the same as you would going there directly — the fee comes out of the exchange's take. We only recommend exchanges we'd genuinely use, and the recommendations don't change based on payout — each card states the actual fees so you can compare directly. The backtester, projection, goal planner, and methodology are free with no signup, and that will not change.

Question 10

Can I retire on Bitcoin — how long would my stack last?

Accepted Answer

DCA Butler's Live Off Your Stack tool simulates exactly that: you enter your BTC stack, a monthly dollar withdrawal, and a horizon, and it reports the probability the stack survives, how long the median path lasts, and the monthly spend with roughly 90% survival odds. It runs hundreds of price paths from the same Power Law model as the rest of the site. Two honest caveats: selling monthly exposes you to sequence risk (an early drawdown drains the stack fastest), and every number assumes Bitcoin's historical trend continues — which no model can promise. Educational only, not financial advice.

Question 11

Is DCA Butler open source?

Accepted Answer

Yes — the entire site is open source under the MIT license at github.com/netasset/btcdca. Every number shown is computed by code in that repository: the Power Law model, the backtester, the Monte Carlo projections, and the Grade My Stack parser all live in a unit-tested math library that anyone can read, run, and challenge. That's also how the privacy claims are verifiable — you can confirm in the source that your pasted buy history is parsed entirely in your browser and never transmitted or stored.

Zone	= $	= $
Below Blue🔥 Maximum undervalue	$300	—
Blue💙 Deeply undervalued	$200	—
Teal🟢 Undervalued	$100	—
Green✅ Fair value	—	—
Yellow🤔 Slightly overvalued	—	$100
Orange⚠️ Overvalued	—	$200
Red🚨 Extreme bubble zone	—	$300

Zone	Deviation	= $	= $
Below Floor🔥 Historical extreme low	Below -58% Below floor — extreme low	$300	—
Floor Zone💙 Deeply undervalued	-58% to -35% Floor zone — deeply undervalued	$200	—
Undervalued🟢 Below fair value	-35% to 0% Undervalued — below fair value	$100	—
Overvalued🟡 Above fair value	0% to +100% Overvalued — above fair value	—	$100
Ceiling Zone⚠️ Approaching ceiling	+100% to +300% Ceiling zone — approaching peak	—	$200
Above Ceiling🚨 Historical extreme high	Above +300% Above ceiling — extreme high	—	$300

What if you'd bought Bitcoin smarter? Test Rainbow vs Power Law vs plain DCA on 16 years of real data.