Crypto SIP: A Complete Guide

Zebpay
4 min readDec 4, 2023

SIPs, or systematic investment plans, allow you to invest in investment schemes such as mutual funds via periodic payments. This financial strategy makes investments more accessible, as you do not have to invest large amounts to start your investment journey. Once you begin a SIP scheme, money will automatically be debited at regular intervals, automating the investment process. Additionally, investment experts will handle your SIP investments. This is ideal for beginners or for those who do not have time to make complex financial decisions.

SIP’s benefits also make it ideal for crypto. Many crypto platforms now offer users crypto SIP schemes to help begin their crypto investment journey. It is an easy way to begin investing in crypto through schemes like crypto mutual funds. Crypto SIP allows you to take advantage of the benefits of this lucrative asset class. You can earn from it without being a crypto expert or if you lack the capital or time to execute large crypto trades.

What is a sip in crypto?

Similar to mutual funds, crypto SIPs can help you yield good returns by managing the risks of the volatile crypto market. Market volatility is considered healthy as it creates opportunities to earn profits. However, investing a large amount of money at once in a volatile market might result in a loss. Therefore, strategically investing in crypto SIPs at regular intervals can help you beat the volatility of the crypto market. SIP in crypto involves investing a fixed amount at regular intervals in a specific crypto or a set of cryptos that you are comfortable investing in.

Crypto SIPs offer a safer alternative for first-time crypto investors. It offers a better entry point in a volatile market as you invest small amounts at regular intervals. It is ideal for your long-term crypto investment plans.

Benefits of SIP

Convenience and flexibility

Crypto SIPs can help you manage your portfolio more conveniently. You do not have to invest time to predict the best entry price point or track the crypto market frequently, as it takes care of all these aspects. It is a practical and flexible way to invest in crypto, as you can select the investment range based on your goals. You can put in a modest amount of money with the help of this investment strategy instead of investing large sums all at once. So if the market falls, you do not lose as much due to this approach. You can always increase or decrease the amount and the time intervals of your investment.

Rupee-cost averaging

Crypto SIP allows you to enter the crypto market at different times. This strategy is also called dollar- or rupee-cost averaging, as it helps you average your entire crypto investment fund. It can lessen the effects of the crypto market’s volatility in the long run. It is one of the most popular investment strategies to withstand and overcome the volatility of the crypto market.

Compound Interest

Compound interest is the answer to how to take profits in crypto and reinvest them. Many investment experts say staying invested in the market is vital for high returns. You can reinvest your earnings through crypto SIPs to grow your wealth quickly.

Discipline in investing

By consistently investing in a disciplined manner, a crypto SIP can help you develop the habit of saving regularly. It provides a monthly auto-debit option where SIP payments get automatically debited from your account. Through this, you can earn passive income that can be used to make further investments.

You can gain in the long run if you steadily increase the amount you invest in crypto SIPs. You can scale your SIP investment along with your paycheck.

Avoid early withdrawal

You may need to make an early withdrawal from your investments to cover an expense. However, this should be your last resort, as spending time in the market is vital to making profits through crypto SIPs. You must try to avoid it, but if you must, withdraw when crypto prices are high so that you do not lose on returns.

Track crypto portfolio regularly

It is vital to analyze your crypto portfolio regularly, even if you do not track the market daily. This helps you identify any gaps, whether it is meeting your expectations, or if you need to make any changes to your investment strategy.

Conclusion

It is vital to study and analyze crypto projects to make sound investment decisions at the right time. Investors can diversify their portfolio through SIPs in crypto by investing in a token or a set of tokens. Amateur and experienced crypto investors can use crypto SIPs to earn passively with relative ease. Limit your withdrawals to let your crypto investments grow through SIP in crypto.

Use the crypto SIP strategy and experience the power of crypto trading with ZebPay

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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