20 September 2021
A Systematic Investment Plan (SIP) is an investment technique in which an investor must put the same amount of money in a specific mutual fund at regular intervals. SIP investing allows an investor to participate in the financial market without actively timing it, and the investor can benefit by purchasing more units when the price rises. Rupee Cost Averaging is a mechanism used to minimize the average cost per unit of investment.
SIP in Bitcoin is also known as periodic investment or recurring deposit. It is easier to put a small amount of money into an investment on a regular basis than it is to make a huge commitment all at once. Regardless matter the amount of investment, if you invest regularly, your investment may be quite small. Periodic investing also reduces the danger of market swings by slowly increasing your entire position. Another motive to start a Systematic Investment Plan (SIP) is not to monitor the market attentively. Instead, investors establish a plan, choose an asset, and begin investing without spending a lot of time watching the market actively.
The popularity of Cryptocurrencies is increasing by the day, and there are numerous efforts underway to bring Bitcoin into the mainstream of the financial system. Bitcoin was the first Cryptocurrency, launched a decade ago, and it continues to dominate the market in terms of market capitalization and trade volume. The demand and supply for Cryptocurrency determine its price. Although it has been proved that Bitcoin has provided the highest return on investment since its inception, there is also a significant risk associated with Crypto investments, and setting up a SIP in Bitcoin (or another Cryptocurrency) is a wonderful method to reduce that risk.
The following are Three secure platforms where you can start a Crypto SIP in India:-
1. Bitdroplet Powered By Bitbns :-
BitDroplet allows users to invest in Bitcoin with small investments; they call it Systematic Purchase Plan (SPP). BitDroplet is a product of the famous Indian Cryptocurrency exchange BitBns, which was started in 2017. Customers can buy Bitcoins or start a SIP with as low as Rs. 100 each day. Additionally, the payment could be paid once a week or once a month.
How can you make a cash deposit for a Bitdroplet Transaction?
To deposit money for Bitdroplet or start a SIP in Bitcoin, you need to go to ‘Wallet’ and click on ‘Deposit Money’. Currently, Bitdroplet wallet can store your investment only in the form of USDT. The minimum transfer from Bitbns to Bitdroplet Wallet should be 0.01 USDT. if you do not have USDT funds you need to first buy them from Bitbns and then transfer it to your Bitdroplet wallets.
According to the platform, a 5-year investment in Bitcoin has yielded a 1251 per cent absolute return. A 5-year SIP that started at Rs. 500 per month will be worth Rs. 1,18,310.
2. Unocoin App:-
The Unocoin App may be used to enrol for the SIP function, which the platform refers to as Systematic Buying Plan. Remember that the investment can begin for as little as Rs. 50.
How should you start a Cryptocurrency SIP with the Unocoin App?
- First, as a first-time user, you must register
- After completing the registration process, you will be required to create a 6-digital passcode, as well as answer six questions that must be remembered for data retrieval if the situation arises so.
- After that, you must verify your account. Inputs such as bank details must be provided in the KYC process.
- After you’ve uploaded all of the required documents, click on ‘SBP’. Choose between Bitcoin and Ether for SBP. The frequency of investment as well as the quantity must be indicated. After that, select SBP Enable to begin the SIP.
Unocoin is an eight-year-old Bengaluru-based startup and India’s first entrant into the Bitcoin industry. In less than three years of operation, the company has attracted 45 prominent investors from five different nations. Unocoin was the first to implement SIP in Bitcoin in 2015.
3. Zebpay :-
Another platform that offers SIP investment in Bitcoin is Zebpay. According to the return calculator on Zebpay’s website, if you invest Rs. 1000 every week for 5 years, you will be able to earn Rs. 3,37,571 from your total investment of Rs. 2,60,000, assuming a 10% annual rate of return.
Dollar-cost averaging- investing fixed sums at regular times – is encouraged at ZebPay. This helps to accumulate more units compared to the person who invests in one-go because of the price differential at various purchase points.
Currently, the country’s most popular and oldest exchange only offers SIP in Bitcoin, which may be started for as little as Rs. 100 on a weekly or monthly basis.
At Zebpay, you can start a SIP using Bitcoin.
- Get the ZebPay app on your smartphone or tablet.
- Complete your KYC: here you must complete your KYC by uploading two pictures, providing your bank account information, and depositing rupees to begin your SIP.
Conclusion: All of the platforms listed above are safe to use. Before you invest, you should study everything about the market. Many people may not realise it, but there are a lot of random phrases in Crypto that you should be familiar with, even if you’re only interested in spending a small amount of money. The Bitcoin market is incredibly volatile, and no one knows what will happen next. As a result, it requires patience, and if you stick with it long enough, you can earn monetarily.
Disclaimer:- The author's thoughts and comments are solely for educational reasons and do not represent financial, investment, or other advice.