Crypto Value Averaging (VA) Strategy Calculator

Explore the Value Averaging investment strategy. Our calculator helps you determine how much to invest (or potentially divest) each period to keep your crypto portfolio's value growing along a predetermined path.

Important: This is a simulation tool based on the price inputs you provide. Value Averaging can be complex and may require large investments or sales. Not financial advice.

Value Averaging Strategy Setup

Initial State & Targets

Initial Portfolio Value ($)

Can be 0 if starting new.

Initial Coin Quantity (Optional)

If known, provide this OR Initial Price at Start.

Initial Price at Start ($) (Optional)

Price per coin when strategy begins. Needed if Initial Value/Quantity is set.

Target Value Growth Per Period ($)

Number of Investment Periods

Price Inputs for Each Period

Enter the expected price of the cryptocurrency at the end of each investment period (i.e., when you'd re-evaluate and make your VA investment/divestment).

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How to Use the Value Averaging Simulator

This tool helps you model a Value Averaging strategy:

Initial State: Enter your crypto portfolio's starting dollar value. If you have existing coins, also enter the quantity and current price per coin. If starting fresh, these can be $0 or 0 coins.
Target Growth Per Period: Decide how much you want your portfolio's total value to increase by each period (e.g., grow by $100 every month).
Number of Periods: Define the duration for how many periods (e.g., months, quarters) you'll re-evaluate and invest.
Price Inputs: For each period, enter the anticipated price of the cryptocurrency at the end of that period. This is when you'd make your VA transaction.
Simulate: The calculator will show how much you'd need to invest (or sell) each period to meet your target value, along with other metrics.

What is Value Averaging (VA) in Crypto?

Value Averaging (VA) is an investment strategy where you aim to have the total value of your investment increase by a predetermined amount during each period. Unlike Dollar-Cost Averaging (DCA) where you invest a fixed dollar amount, with VA, the amount you invest (or potentially sell) varies.

If your portfolio's value is below your target for the period, you invest the difference to reach the target.
If your portfolio's value is above your target, you invest less, nothing, or even sell some assets to bring the value back to the target path (though selling is less common in accumulation phases for many).

The goal is to force you to buy more when prices are low (to catch up to the target value) and less when prices are high.

Pros & Cons of Value Averaging for Crypto

Pros:

Potentially lower average cost per coin compared to DCA, especially in volatile or declining markets.
Forces a disciplined approach to investing based on portfolio value targets.
Can lead to more aggressive buying during dips.

Cons:

More complex to implement than DCA. Requires calculating investment amounts each period.
Investment amounts can vary wildly. You might need to invest a very large sum if the market drops significantly, or have nothing to invest (or even need to sell) if the market moons.
Can be psychologically challenging to sell during a strong rally if the strategy dictates it.
May require having significant cash reserves ready for large investment periods.

Compare this to the simpler Dollar-Cost Averaging strategy.

Strategy Simulation Disclaimer

This Value Averaging Calculator is for simulation and educational purposes. The outcomes depend heavily on the price inputs you provide, which are speculative. Real market conditions are unpredictable. This strategy can involve variable and potentially large investment amounts. This is not financial advice. Consult a qualified financial advisor.