What is Crypto SIP:- Through SIP, it is easy to avoid fluctuations in the price of cryptocurrencies. And because they buy at each level, the average buy price of the investor is better.
Investment In Cryptocurrency In SIP: Investing in cryptocurrencies like bitcoin is attracting a lot of investors these days. However, as is the condition of the stock market, investors who have little knowledge of the stock market investments in the market through mutual funds. So that they can avoid the risk of investing in the market. Similarly, investors want to invest in cryptocurrencies but due to less information and the inability to monitor it 24 hours, investors want to avoid investing in cryptocurrencies directly. Such investors can now invest in cryptocurrencies through SIP, similar to mutual funds.
Recently, many crypto exchanges have come up with the option of investing in cryptocurrencies through SIP for investors. Platforms like CoinsSwitch Kuber, and Bitbns are also offering investors the option of investing in cryptocurrencies through SIP. According to experts, it is easy to avoid fluctuations in the price of cryptocurrencies through SIP. And because of buying at each level, the average purchase price of the investor is better and in the long term, one can get better returns on investment similar to mutual funds.
How to invest:
Investors must first open an account with a crypto exchange or an investment platform offering investment through SIP. Investors will have to update their KYC documents online. After this, the investor can load the money onto the platform and invest in any cryptocurrency like bitcoin or Ethereum through SIP.
There is a cutoff time for investing in mutual funds but it is not so in cryptocurrencies as they trade 24 hours a day. Apart from monthly SIP, investors can also do daily SIP so that volatility in cryptocurrencies can be avoided. Crypto exchanges accept automated payments via UPI.
However, with effect from April 1, 2022, 30 percent capital gains tax will be applicable on profits made from investments in cryptocurrencies. The government is calling cryptocurrencies regulated and has not yet recognized them. But the tax on cryptocurrencies is only being seen as a sign of acceptance.