BuyUcoin launches crypto SIP facility with 10 tokens
Invest in Crypto SIP in India — Step by Step Guide for Beginners
How To Do Crypto SIP in India?
The global crypto market capitalization is 160.92 Trillion, up 2.83 percent from the previous day. Bitcoin is currently worth $3,527,752.07. Bitcoin presently has a 41.28. Cryptocurrencies are among the most volatile financial instruments. As a result, savvy investors adopt a methodical investment plan (SIPs). SIPs can be started with as little as Rs 100 and invested on a daily, weekly, or monthly basis. A cryptocurrency SIP protects you from huge losses if the value of your coin falls abruptly.
BuyUcoin, India’s oldest cryptocurrency exchange, has introduced a Systematic Crypto Investment Plan (SCIP) for the investors with the option to choose from 10 crypto assets. The SIPs are available in bundled plans that distribute the investment among crypto-assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Chainlink (LINK), Dogecoin (DOGE), and Bundled Crypto Assets.
What is Crypto SIP?
A Crypto SIP is an investment instrument given by BuyUcoin to investors that allows them to invest small amounts on a regular basis rather than in large sums. A SIP in a cryptocurrency would save the investor from significant losses even if the value of your coin suddenly comes crashing down.
The high volatility of the cryptos is not hidden from anybody. So, the safe investors opt for the Systematic Crypto Investment Plans (SCIP). You can invest with a fixed amount with SCIP on a daily, weekly, and monthly basis as per your convenience.
How does Crypto SIP Works?
- Rupee Cost Averaging
The Rupee Cost Averaging function of Crypto SIP is unique in that you end up buying more units when the market is down. This is due to the basic feature of SIP, in which you will buy more and begin your sip in bitcoin at every market correction. This not only lowers your investing costs but also leads to large rewards. It helps to reduce the “timing” aspect, and if you invest consistently, regardless of market level, you can earn higher potential returns.
Saving a small sum of money regularly for lengthy periods of time can have an exponential influence on your investment because of the power of compounding. The examples below demonstrate this:
At the age of 40, Alice begins saving for his 60th birthday. Assuming a 7% return and a monthly investment of Rs. 1000, his entire corpus after 20 years will be Rs. 5,28,000.
At the age of 20, ‘Bob’ begins saving for his 60th birthday. Assuming 7% returns and a monthly investment of Rs. 1000, his total corpus at the end of 40 years will be astonishing Rs. 26,56,436 — about 5 times A’s corpus.
Regular investments made over a longer period of time produce higher returns.
Advantages of Investing in Crypto SIP
A SIP (in crypto) can do amazing things. investing via SCIP is always a good idea.
- Financial Discipline: The consistency of SCIPs promotes financial discipline. It promotes forced savings and assists you in building a corpus without limiting your lifestyle.
- Flexibility: SIPs allow for greater flexibility in investment. You have the option to increase or decrease your contribution at any moment.
- Convenience: SIPs are a simple way to invest. It’s simple to do online with a one-time set of instructions. Your SIPs will begin to collect automatically.
- Lower risk: Investing in lump sums may expose you to greater capital risk. A SIP spreads your investment over time, lowering the risk to capital and allowing you to better navigate volatility.
Invest in Crypto SIP in India via BuyUcoin
To keep your investment safe, you can use the Systematic Investment Plan (SIP) in cryptocurrencies offered by the secure platform BuyUcoin. The service is comparable to the SIP offerings in mutual funds or stocks. BuyUcoin powers and develops a user-friendly platform. On a daily basis, users can invest in bitcoin or start a SIP. Furthermore, the investment can be made on a daily, monthly, weekly, or quarterly basis.
Invest in Crypto SIP in India — Step by Step Guide for Beginners
- To begin investing in Crypto SIP, you must sign up and create an account on BuyUcoin.
- After successfully registering, complete the one-time KYC process. For KYC a picture of PAN, Aadhar, and the Latest Selfie is required.
- The account details like email and mobile number must then be verified.
- Then add the Bank Details.
- Once the necessary documents have been uploaded, click on ‘SIP’ or visit thttps://trade.buyucoin.com/sip-plans-crypto
- The frequency and amount of investment must also be specified. Later, select SIP. Enable the SIP to begin.
- To deposit money for BuyUcoin or to start a SIP in bitcoin, go to ‘Wallet’ and click ‘Deposit Money.’
Is Crypto SIP More Beneficial Than The Traditional Mutual Funds?
People nowadays prefer to spend their money in a variety of investment channels that have the potential to build substantial wealth and yield higher returns than traditional investing possibilities. Crypto SIPs provide users with the chance to make their money multiplied within a short amount of time. Mutual funds and Crypto SIPs follow a single rule that the investor shall only invest after knowing all the technical and his money management and risk appetite.
Bitcoin has become a sensational asset and has wowed the globe with its high return capability; none of the top asset classes comes close to the amount of returns Bitcoin has produced. After Bitcoin, the crypto market SIPs are now creating hype among the investors of every age group. Since cryptos are highly volatile, they tend to completely outshine the returns of mutual funds. However, mutual funds have their value and tend to give high returns with low risk.
- The investment time is very fast when compared to the traditional method.
- The crypto SIPs returns are extremely high.
- There are no redemption charges on the crypto SIPs.
- Yields higher rewards in the long term. Invest the right amount as per risk tolerance.
- The lowest amount of trade fee is applied only at the time of each purchase and redemption. In contrast, In Mutual funds, a 1.5% expense ratio is used forever.
How to choose which Crypto SIP is best for you?
After making up their mind to start a SIP, investors are usually confused regarding the coin they should invest in.
- If you are a beginner, first invest in coins that exist for an extended period and have massive market capitalization such as Bitcoin, Ethereum, and other blue-chip cryptos.
- After that, invest in cryptocurrencies having medium-sized market capital and are traded on crypto exchanges for at least four years. It will help you to understand your emotions along with the volatility.
- If you are looking for quick returns and have a high-risk appetite then you should invest in the high-risk category, i.e., new cryptocurrencies one month to one year old.
Cryptocurrencies are growing as a new asset class that offers significant investment prospects. It all comes down to the individual and their risk tolerance. A new investor may be enticed by the high returns of cryptos, but he or she should also be mindful of the additional risks they entail. Cryptocurrencies and mutual fund investments both have pros and cons. After considering the risk-return trade-off, one should invest in either based on their risk tolerance ability.
Note: A key point to remember as an investor is that SIP in Bitcoins does not make it any less risky. Investors should make their financial decisions with their financial advisors.
Invest in Crypto SIP in India — Step by Step Guide for Beginners was originally published in BuyUcoin Talks on Medium, where people are continuing the conversation by highlighting and responding to this story.