Nearly three decades after the first mutual fund SIP was introduced in India, today’s industry is valued at over INR 1 lakh crore and is adding almost 10,000 crores every month to its kitty.
Banking big on fantastic returns, low risk, and strong regulations, SIPs in mutual funds are today one of the most coveted asset classes for the common investor.
May it be equity or mutual funds; SIP has proved its ability to mitigate volatility over time. Riding on the power of compounding, the investment strategy has helped investors build lucrative returns, especially in the case of reinvested returns. While risk and returns are the key factors driving investment decisions, and both are directly related, yet a high-return low-risk investment is a dream avenue for any investor.
Cryptocurrency is one of the most popular asset classes that have gained immense investor interest in recent years. Besides soaring market caps, incredible innovations, real-world use-cases hinged on Blockchain technology, and the faith vested by the investor community inclusive of the institutional genre from across the globe have been some of the major growth drivers for the industry. However, despite such massive growth and popularity, volatility has been an area of concern, owing to which many enthusiastic investors have preferred to adopt a cautious approach.
Much similar to equity and mutual funds, following the SIP strategy in crypto can potentially aid in yielding better risk-adjusted returns even in the midst of a volatile market. Volatility is a natural part of market activity and is considered healthy as it aids market correction and also creates opportunities for profits. However, investing in a lump sum in the face of high volatility may not be a good idea, and therefore a strategic spread in regular intervals – daily, weekly or monthly through SIP to beat volatility. Backed by a disciplined approach of Sipcryp, SIP in crypto entails a systematic investment of a fixed amount of money at regular intervals in a particular crypto or a crypto basket that investors can choose from.
SIPCRYP provides a staking platform on stable & fundamental coins for the community & acts as a Validator
SIPCRYP work just like their traditional counterparts. Instead of making one large purchase, SIPs allow you to invest in the crypto market through smaller payments over an extended period thru the SIPCRYP platform. This also helps you average out the buying price of the token and reduce the impact of volatility.
Benefits of SIPCRYP
1) Mitigate volatility – Under crypto SIP, an investor typically purchases fixed amounts of stable coin or fundamental coin at regular intervals, such that he is buying at different price points, which in turn enables him to counter the impact of volatility. While investing in crypto through SIPs can be done either on a monthly basis, considering the recent volatility,
2) Pocket Friendly – SIPs, be it in mutual funds or stocks, have traditionally proven to be a very pocket-friendly way of building wealth, and crypto SIP are no different. Investors can kick-start their investment journey with as little as ₹500 monthly.
Auto investments – With a SIP plan in action, a specific amount is mechanically debited from one’s account at the requisite intervals. Besides beating volatility, this strategy also helps eliminate the tedious task of thinking through and making a purchase decision every time. One can also set up multiple SIPs across different cryptocurrencies to passively build a robust crypto portfolio.
Leveraging the power of compounding –
Compounding can aid in effectively mitigating volatility in crypto. Besides regular investments, through SIP, one can also re-invest one’s returns to generate wealth. Here by leveraging the power of compounding, one can enjoy the yields generated through long-term lock-in of investments.
Disciplined investing – By encouraging consistent investments in a disciplined fashion, SIP can help build the habit of regular savings. With a monthly auto-debit plan on the go, similar to EMI payments, the SIP instalment gets automatically debited from one’s account every month as soon as salary hits the account. This aids in generating passive revenues, which can be used for further investments.
Very similar to equity and mutual funds, SIP in crypto also should be availed as part of a long-term investment strategy. It might take time to build visible results. However, it can potentially offer better yields while mitigating risks. Besides maximising yields through compounding, the long-term horizon also helps eliminate the risks of impromptu investment decisions, especially in the wake of high volatility in the market.
Like every other form of investment, it is important to understand and analyse cryptocurrencies, too so as to be able to make the right investment decision at the right time. Through SIP in crypto, besides taking the plunge, investors can also diversify and build a crypto portfolio by systematically investing in a particular token or a host of tokens. While new investors can consider well-established tokens such as BTC and Ethereum, mature investors with a higher risk appetite can also consider stablecoins such as Tether, Polygon and Solana BNB & pond.
SIPCRYP platform acts like a valditor & Fund manager who advises the community to invest in stable & fundamental coins & stakes to provide staking profit along with an appreciation of crypto. Join our community:
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