Whitebit SIP Calculator is based on Dollar Cost Averaging(DCA). It helps you to calculate the amount of wealth generated in a given duration if bought monthly. Dollar-Cost Averaging is an investment strategy in which an investor invests a small amount of money periodically to avoid the impact of volatility on the overall purchase.
The purchases occur at a fixed period which reduces the huge effort in tracking the market for better buy prices. Dollar-cost averaging aims to avoid making the mistake of making one lump-sum investment that is poorly timed with regard to asset pricing. It is a great method to create wealth over a long period of time.
How to use Whitebit SIP calculator
Whitebit SIP Calculator calculates the overall amount returned if someone invests a small chunk of money periodically. In order to use this calculator, you need to know three-parameter.
- Investment Amount - It is the amount of money that you have decided to invest in Whitebit. For example, If I have decided to invest 100 $ per month, You need to fill 100 in the input field of the investment amount.
- Investment Time - It is the tenure of your investment i.e total time you will remain invested in Whitebit. You can select investment time from the dropdown.
- Investment Frequency - Investment Frequency means how frequently you are buying Whitebit. If you are planning to invest one time in a month, you can select monthly as Investment Frequency
Once you have decided on these three parameters, you have to click on the calculate button and you will get the return result
How Whitebit SIP calculator works
It gets historical price data from www.coingecko.com and calculates the return. CoinGecko is one of the largest and earliest crypto data aggregators, operating since early 2014. It currently tracks nearly 5893 tokens from more than 398 cryptocurrency exchanges. The accuracy of this tool completely depends on the price data of CoinGecko.
All transactions that has been considered to calculate the total return can be found in the transaction table. It shows you different data points that we have taken into account to reach the final outcome.
Disclaimer - The investment return quoted should not be considered as an advice on whether to invest in bitcoin or any other crypto. Kindly, do your research or contact a financial advisor before taking any investment decision.