It’s pretty usual to invest in mutual funds using a Systematic Investment Plan (SIP). To minimise impulsive reactions and short-term volatility, financial planners advocate investing in a disciplined and consistent manner on a regular basis. Now, cryptocurrency exchanges are catching up, BuyUcoin one of the oldest cryptocurrency exchanges in India recently launched a Simple Investment Plan (SIP) in Bitcoin, Ethereum and other popular cryptocurrencies.
In recent times people prefer to park their money in numerous investment avenues that depict the potential of solid wealth creation and generate manifold returns than the traditional investing options. The investor has to choose from the traditional financial instrument like bonds and mutual funds to the rising digital options like cryptocurrency, NFT. Bitcoin has become a sensational asset and shocked the world with its high return capacity; none of the top asset classes comes even closer to the amount of returns Bitcoin has yielded.
Crypto SIP provides users with the chance to make their money multiplied within a short amount of time. Mutual funds and Crypto SIP’s follow a single rule that the investor shall only invest after knowing all the technical and his money management and risk appetite.
Crypto SIP’s are more beneficial in certain areas when compared with Mutual funds
- The investment time is very fast when compared to the traditional method.
- The profits on crypto SIPs are phenomenal.Bitcoin’s mean annual return is 408.8%
- There are no redemption charges on the Crypto SIPs.
- Yields higher rewards in the long term. Invest the right amount as per risk tolerance.
Cryptocurrency SIP V/S SIP in Mutual Funds
|Crypto SIP||Traditional SIP|
|Investment in crypto SIP can be made within a few minutes||The process of investing is simple but is accompanied by lengthy documentation.|
|Trading Time||Crypto Markets function the whole year i.e., 365 days 24*7.||Investing is time-bound and stops when the market closes at the end of the day.|
|Investing costs are very less as compared|
to traditional SIPSs.
|Investing fees are comparatively high because of transaction fees.|
|No extra charge for redemptions||1% Exit load applicable for redemptions within 1 year.|
|825% for monthly investment in Bitcoin|
for the last 5 years, as of today
|46% for monthly investment in NIFTY 50 for last 5 years, as of today|
FAQ’s related to BuyUcoin Crypto SIP
How many cryptocurrencies are available for SIP in BuyUcoin?
We can create SIP for any currency that is active in production. But it depends on the plan that you prefer. You can invest across 10+ crypto assets where the SIP investments are offered through bundled plans which strategically spreads the investment across popular crypto-assets such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Chainlink (LINK), Polkadot (DOT) among many others.
Check out the https://www.trade.buycoin page where you will be able to see all currently available SIPs
What is the maturity time period of SIP? Is it available for a Short time?
Yes, you can also avail a shorter maturity time period of SIP. As, Investment through BuyUcoin SIP can be done on a daily, weekly, monthly, and quarterly basis offering immense flexibility to the investors. You can also extend the maturity time period of SIP. Also, note that You can close your sip subscription anytime. To maximise returns, financial planners believe that crypto SIPs should be held for at least five years.
The most important aspect of a crypto SIP is to keep it running for a long time. SIP investors invest a predetermined amount in a specific scheme at predetermined intervals for a predetermined period of time. This SIP calculator will show you the total SIP returns as well as the SIP value at maturity.
Minimum and Maximum Amount for SIP?
The minimum and maximum amount for SIP that you would like to invest completely depend on the SIP plan that you choose. However, the BuyUcoin SIP is aimed towards the democratization of crypto investing in India where investors can begin their crypto journey.
Risk in Crypto SIP?
The risk associated with SIP is determined by the investment option chosen, taking into account the risk profile, risk appetite, and liquidity. The risk in SIP, on the other hand, can be managed and reduced by the following good investment strategies.
There are various tools available to calculate the risk in SIPs, such as the sip calculator (also known as the SIP return calculator).SIPs are not without risk. However, they do not completely eliminate risk. SIP investments, as opposed to lump-sum investments, will reduce your losses.
Investing Charges in SIP (Trade Fees)
Investing in cryptocurrency through a Systematic Investment Plan (SIP) is a popular way to park money. However, it’s worth noting that individuals who are first-time investors or who want to invest small amounts of money in cryptocurrencies on a regular basis can also use the SIP route.
There are no Investing or Trading charges in BuyUcoin SIP. As BuyUcoin is always transparent with its customers, we always ensure zero hidden charges in your trading.
Redemption Charges of SIP
There are no redemption charges in BuyUcoin SIP
Can I direct Invest in SIP with INR? Or is it only for stable coins?
You can directly invest in BuyUcoin SIP with INR.
In India, the Systematic Investment Plan (SIP) is a very safe way to invest in cryptocurrencies as well. If you make a lump sum investment in a cryptocurrency trade, depending on market conditions, you could end up paying a very high price for a cryptocurrency.
When investing through SIP, you don’t have to worry about market timing. Yes. In fact, it is preferable to make a long-term investment in SIP. Instead of waiting for money to accumulate before investing, you begin investing with whatever amount you are able to save. This ensures that your money is always invested. Not only that, but by investing for the long term, you ensure that short-term market volatility has no impact on your investment.
Can I redeem SIP before the completed Maturity date? If yes then how much will it be charged?
SIP premature close can be done also kindly note that no fees will be charged if you want to redeem SIP before the completed Maturity date. Unless your investments are subject to a lock-in period, you can withdraw them on a regular basis.
After Completed Maturity Date How much are the fees for redemption?
No fees are charged for redemption after the completed maturity date. The redemption value is the price at which the issuing company will buy back the bond from investors before it matures. A callable bond allows the bond’s issuer to pay off its debt early.
In this case, you only sell a portion of your investment rather than the entire amount. This means that even after you redeem held units, your SIP remains active. Your SIP will continue to buy units the following month.
If you are pleased with the SIP’s performance and do not have any other demanding financial obligations, you can choose to extend the maturity date of the SIP investments. Reinvest in a variety of assets to meet your financial objectives.
Where are the SIP invested Crypto coins Stored?
SIP invested crypto coins are stored in the wallet of the user’s account.