- What is dollar-cost averaging (DCA)?
- Dollar-cost averaging means buying a fixed dollar amount of an asset on a regular schedule, whatever the price. You get more coins when the price is low and fewer when it is high, which spreads your entry price over time instead of staking everything on one day.
- Would DCA or a lump sum have done better with Pudgy Penguins?
- Over the last year, $100 a week into Pudgy Penguins added up to $5,300 and is worth $6,272 (+18.3%). Putting the same $5,300 in on the first day would be worth $1,658 (-68.7%). A lump sum comes out ahead when the price climbs from the start; spreading purchases comes out ahead when the price falls first.
- Does it matter how often I buy PENGU?
- For Pudgy Penguins over the last year, the return on money put in was: every day +18.0%, every week +18.3%, every month +13.4%. The schedule usually moves the result far less than the start date does.
- Does the calculator include fees and taxes?
- Fees are zero unless you fill in the fee field. Exchanges usually charge a percentage of each purchase, which reduces the coins you get every time, so enter your exchange's rate for a realistic figure. Taxes are not modelled.
- Where do the prices come from?
- Daily closing prices of the PENGU/USDT pair on Binance, from December 17, 2024. Each purchase is filled at that day's close. A day with no data uses the previous close.
