There are a lot of ways to invest money. In recent time, SIP become very popular among common people. We will talk about a different type of SIP today- Crypto SIP. Systematic Investment Plans (SIPs) are a simple and disciplined way to invest in cryptocurrencies. Investors invest a fixed amount of money into crypto at regular intervals, similar to SIPs for stocks or mutual funds.
According to Sumit Gupta, co-founder of CoinDCX, “With a crypto SIP, you set up automatic purchases of your chosen cryptocurrency through the exchange. You decide how much you want to invest and how frequently. For example, daily, weekly, monthly, or quarterly, your money is invested accordingly.” According to Sumit Gupta, there are many benefits of investing in cryptocurrency through SIPs. This allows you to avoid some of the fluctuations of the crypto market and helps you create wealth in the long term. Regular investments allow you to buy more units when prices are low and fewer units when prices rise, thereby reducing the impact of market fluctuations. Some SIPs allow investments from as little as ₹100, making crypto accessible to more people.
SIPs allow you to invest in multiple cryptos, thereby reducing risk and keeping your portfolio balanced. According to Sumit Gupta, features like auto-debit make investing easier and eliminate the need for manual investments. SIPs can typically be initiated on CoinDCX in cryptocurrencies like Bitcoin, Ethereum, Cardano, Polygon, and Solana.
Crypto SIPs were introduced in India in 2022 and have now become quite popular. The average age of SIP investors is 34 years, compared to 30 years for typical crypto investors. This means that more mature and long-term investors are opting for SIPs. People are now interested in long-term investing rather than speculative or short-term trading.
How to start a crypto SIP
Select a regulated exchange.
Complete KYC as per Indian regulations.
Choose a cryptocurrency to invest in.
Set the investment amount, time and frequency.
Crypto SIPs allow you to invest regularly in digital assets. This method is simple, disciplined, and risk-reducing. It also helps you weather market fluctuations.
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