Dollar-cost averaging (DCA) calculator for THETA (THETA) backtesting
Visualise and calculate historical returns of investing $100 in THETA every 7 days from Jul 2023 until now
Value in FIAT
in 3 months
THETA selling price
1st order $0.77
Over 9 instalments of $100, every 7 days
Earnings over time
Estimate the development of your earnings over time
THETA price over time
Price development vs. average cost
Profit/Loss every 7 days
Based on your purchase interval you would make profit 33% of the time
What is Theta Network?
Theta Network is a blockchain platform designed for the media and entertainment industry. It enables video and media platforms to reduce content delivery CDN costs, generate incremental revenues, and rewards end-users for sharing their storage and/or bandwidth on any PC, mobile, Smart TV, or IoT device. Theta supports Turing complete smart contracts and is fully compatible with Ethereum, allowing the development of a range of Web3 applications, including NFTs, DEX/DeFi, and DAOs, for the next generation of media and entertainment platforms.
Theta Blockchain consensus mechanism
Theta Blockchain has a multi-level Byzantine Fault Tolerant (BFT) consensus mechanism that combines a committee of 20-30 enterprise validator nodes with a second layer of thousands of community-run guardian nodes. Validator nodes propose and finalize new blocks in the chain, while guardian nodes act as a check on malicious or non-functional validator nodes. This design makes the Theta Blockchain highly decentralized, and the thousands of guardians offer an extra layer of security. The Theta Blockchain can process 1,000 transactions per second, and its consensus mechanism is fast, green, and has virtually zero carbon footprint.
Smart contract support and EVM compatibility
The Theta blockchain provides full support for Turing-complete smart contracts, which can enable digitized item ownership, innovative payment-consumption models, transparent royalty distributions, trustless crowdfunding mechanisms, and much more. The Theta Virtual Machine is compatible with the Ethereum Virtual Machine, making it easy for Ethereum-based contracts to be ported over to Theta. This means thousands of smart contract developers can easily start building on Theta, tapping into its growing user and capital base.
What is Theta Metachain?
Theta Metachain is a concept announced by Theta Labs in April 2022, targeted to launch on Dec 1, 2022. It is an interconnected network of blockchains, a “chain of chains,” that allows permissionless horizontal scaling of the Theta blockchain network to achieve potentially unlimited transactional throughput and block finalization time of 1-2 seconds or less. The Metachain consists of one “main chain” and an unlimited number of “subchains,” which execute transactions independently. This provides a viable path to infinitely scale the processing capacity of the Metachain. The subchain SDK will implement a built-in interchain messaging channel which connects the subchains and the main chain, allowing crypto assets like TNT20/721 tokens to flow freely across the chains. The process of creating a subchain is permissionless, meaning anyone can register and launch a subchain without Theta Labs' approval.
Dual token design
Theta Network has a dual token design that includes the governance token, THETA, and the operational token, TFUEL. THETA is used to stake as a validator or guardian node, contribute to block production, and protocol governance of the Theta Network. By staking and running a node, users earn a proportional amount of the new TFUEL generated. The supply of THETA is fixed at 1 billion and will never increase. TFUEL is used for on-chain operations like payments to Edge Node relayers for sharing a video stream, or for deploying or interacting with smart contracts. Relayers earn TFUEL for every video stream they relay to other users on the network. The supply of TFUEL increases annually at a fixed percentage set at the protocol level.
Theta Edge Network?
In addition to the Validator and Guardian Nodes, the Theta Edge Nodes form the Theta Edge Network, which is a fully decentralized network for data storage, delivery, and more generally edge computing. As of February 2022, there were over 130,000 Theta Edge Nodes worldwide. Theta Video API, powered by Theta Edge Network, allows developers to add decentralized video to any website or application without any central servers, content delivery or video hosting software. Theta EdgeStore is an append-only, content-addressing, decentralized key/value storage network for the permanent web, also acting as a decentralized content delivery network for any type of files. Theta Labs has received patent approval for USPTO Application No. 17/218,245, a technology developed for implementing decentralized digital rights management (DRM) via NFTs in a decentralized network. This technology can be used for managing rights across a number of domains, including live performances and concerts.
What is a DCA-CC Calculator and How to Use it?
If you want to test out your investment strategy, you'll need to understand how it works and what you're hoping to achieve. This is where the DCA-CC calculator comes in - it can help you see if your strategy will generate the return you want.
The calculator is separated into two modes: the dollar cost average calculator and the lump sum investing calculator. You can use either one to budget for your investments on a regular basis, or to invest all your money at once.
To use the DCA-CC, start by entering a DCA or lump sum investment amount. Then, select the time period, interval, and investment you want to use. The calculator will show you how your strategy would perform under those conditions. You can also experiment with different parameters to see how they affect your results.
And that's not all! The DCA-CC also lets you see how your investment would fare if you used the lump sum strategy. So if you're not sure which approach is right for you, this calculator can help you compare and make the best decision.
What is DCA (Dollar Cost Averaging)?
DCA is like buying a little bit of your favorite cryptocurrency each week or month regardless of the price. By buying equal dollar amounts at regular intervals, you're helping to smooth out the bumps of a volatile market.
Think of it as when buying a house. When you want to buy a house, you don't just fork over all the cash upfront. You make a down payment, and then you pay the mortgage every month. Over time, the house is yours.
DCA is like that, but with investments. You spread your investment out over time, so you're less likely to buy when the market is high. And just like with a house, you eventually own more and more of your investment.
By buying a little bit of your favorite cryptocurrency each day, week or month, you're making small, regular payments that will help you get the coin you want without waiting for a price dip.
Of course, there is always the risk that the price of the coin could continue to fall. However, this risk can be mitigated by using DCA when the market is trending upwards.
How to use DCA-CC to backtest your dollar cost average strategy?
Do you want to know how effective your dollar cost averaging strategy would have been in the past? The DCA-CC calculator can tell you for sure!
This tool is designed to help you backtest your investment strategy, so you can compare it against other strategies and decide which one is best for you.
When you first use the tool, we'll make some assumptions about your potential investment. For example, we'll assume you're investing $10 in bitcoin every week for the past three years.
Of course, you can change the parameters at any time to get more accurate results. So why wait? Use the DCA-CC calculator tool now and find out how your investment strategy would have fared in the past.
Top 3 cards
Value in FIAT, BTC selling price and Total investment cards are the easiest to understand. However, we'll give a little more explanation:
What is DCA Value in FIAT card?
The Value in FIAT card is a great way to see the value of your investments after a dollar cost averaging period. This card can help you understand how DCA affects the value of your investment over time.
The scale on the lower part of the widget displays the investment to interest ratio. In other words: it shows how much of your investment is lost or how much was added to your investment due to the earnings.
What does the DCA Value in FIAT card show?
This card lets you know how much your cryptocurrency is worth in Fiat currency at the end of your investment period. In other words, the price you sell it at.
The card also shows you the price of your first order, so you can see how the market volatility affects your investment over time.
Lastly, the card shows the ratio of the selling price to the average price. This is helpful in determining the value of your investment strategy and how it impacts the selling price.
What is a DCA Total Investment card?
The total investment card calculates how much money you would have invested, given an initial investment and an investment interval, over a specified period of time.
For example, if you invest $100 every month for 3 years, the total investment card would show you how much money you would have invested at the end of those 3 years.
We are presenting two charts here: a chart of earnings over time, and a chart of price over time. These charts can help provide context and perspective, and allow you to see what would be different if you entered or exited the market at a different time.
Earnings over time
This chart shows how much money you've made over time from your investments. It includes your balance in FIAT (the dollar equivalent of cryptocurrencies) as well as your total investment up to that day.
BTC price over time
This chart shows the price of a given cryptocurrency over time, as well as the average cost of a cryptocurrency on any given day.
This chart can help you understand the value of dollar cost averaging as a strategy, and how it may impact your earnings.
What is a Fact card?
The Fact card is an automated message that summarises all the information from all the charts in a short, sharable sentence.
What is Profit/Loss card?
The Profit/Loss card is a tool that can help you to better manage your risks by understanding how often you might be making a profit. As with everyhing else here, this card can provide guidance and clarity in your decision-making process.
What is Purchase history?
What you'll find here is a table of purchase data, which includes information like how much cryptocurrency you could buy with the money invested on a given day, or how much you would have profited or lost at a given point in history.
What is Lump Sum Investing strategy?
Lump sum investing strategy is a method of investing where you invest a fixed sum of money all at once. This is in contrast to dollar-cost averaging, where you spread your investment into several installments over a period of time.
Lump sum investing has its pros and cons. On the plus side, you only have to make the investment decision once. And, if you’re investing in a volatile asset like cryptocurrency, you may benefit from buying when prices are low and selling when prices are high. On the downside, you could end up buying at the top of a market bubble – and we all know how those end.
So, should you go with lump sum investing or dollar-cost averaging? That depends on your investment goals and your personal risk tolerance. If you’re the type of person who can stomach the ups and downs of the market, and you believe in the long-term potential of the asset you’re investing in, then lump sum investing may be the way to go.
How to use DCA-CC to backtest your lump sum investment strategy?
DCA-CC is a powerful, easy to use backtesting tool that can be used to test and optimise your investment strategy.
The DCA-CC calculator will help you calculate the performance of your investment strategy across different market conditions.
You can also compare your performance against other strategies such as dollar cost averaging.
It's easy to use and only takes a few seconds to set up.
Here's how it works:
Enter the amount of money you want to invest.
Choose the cryptocurrency you want to invest in.
Choose a time range
Press the "Calculate" button.
The DCA-CC calculator will then show you how much money you would have made if you had invested that money in the cryptocurrency at that price.
Lump Sum Widgets
Both lump sum investment and DCA widgets are very similar, yet the strategy we employ is different. Some data is presented differently, so we will mention only these differences here.
Top 3 cards
As with the DCA strategy, we have three key cards here: Value in FIAT, BTC selling price and Total investment.
What is a Lump sum selling price card?
This card displays the value of the chosen cryptocurrency - the current selling price.
It also displays the ratio of the current selling price to the buying price. This information is helpful in showcase the value of your investment strategy and its impact on your selling price over time.
What is a Lump sum Total Investment card?
The amount on the total investment card will always be different from the investment parameter you entered into the calculator. This is because we calculate the total investment using the DCA strategy. Doing this allows us to show you the impact of investing the same amount of money using two different strategies.
As a reminder, in the DCA strategy, the total investment card takes your initial investment and your investment interval and multiplies it over the time period provided.