The Challenges of Crypto Investing: Beyond Price Fluctuations
Investing in cryptocurrencies often feels like a roller coaster ride, not just because of the volatile price swings but due to the emotional challenges it brings. The hardest part isn’t just watching the value of your holdings go up and down; it’s managing the fear and confusion that stem from sudden market changes and the anxiety of potentially buying or selling at the wrong time.
This fear can paralyze beginners, leading them to either freeze and do nothing or make impulsive decisions that result in losses. Navigating these psychological hurdles is crucial for anyone looking to succeed in crypto investing.
Introduction to Crypto SIP
Can I do SIP in crypto?
You can indeed start a Systematic Investment Plan (SIP) in cryptocurrencies with an investment as low as ₹100. Many platforms, including apps like Mudrex, offer daily, weekly, or monthly investment options, making it convenient to invest regularly.
What Is a Crypto SIP?
A Crypto SIP allows you to invest a fixed amount in digital assets like Bitcoin, Ethereum, or a basket of tokens known as Coin Sets at regular intervals. This concept is similar to traditional SIPs in mutual funds, except here, you are investing in cryptocurrencies. By investing incrementally, you mitigate risk and avoid panic reactions during market volatility.
How Does a Crypto SIP Work?
Consider starting a SIP in Bitcoin for ₹1,000 each month. You don’t need to monitor daily price changes. The platform automatically purchases Bitcoin worth ₹1,000 for you every month. This approach, known as dollar-cost averaging or rupee-cost averaging, ensures that when prices are low, you acquire more Bitcoin, and when high, you acquire less, averaging out your costs over time.
Steps to Start a Crypto SIP
Getting started with a Crypto SIP in India is straightforward. Platforms like Mudrex offer beginner-friendly options for various cryptocurrencies. Here’s a step-by-step guide:
- Sign Up: Download the Mudrex app and create an account.
- Complete KYC: Upload your PAN and ID proof, a process that takes just a few minutes.
- Add Funds: Add funds to your Mudrex wallet via UPI, bank transfer, or net banking.
- Choose Your Investment: Navigate to the coins section, select the crypto for your SIP, tap ‘buy’, and choose ‘recurring’.
- Set SIP Frequency: Decide on the frequency (weekly, monthly, or daily), the investment amount, and the preferred day for the transaction.
- Start Your SIP: Complete the initial payment using your preferred method, and your crypto SIP is set up.
How Is a Crypto SIP Different from a Regular SIP?
Crypto SIPs differ from traditional SIPs in several ways:
Potential for Higher Returns:
The crypto market is inherently risky but offers the potential for significant gains. While traditional SIPs deliver annual returns of 10-15%, crypto SIP returns can be much higher, although they are not guaranteed.
Fractional Investing:
You can invest in parts of a cryptocurrency with minimal amounts, such as ₹500, which is challenging with many traditional stocks.
24/7 Market Access:
Unlike stock markets, which operate only on weekdays, crypto SIP platforms like Mudrex allow round-the-clock investing, even on weekends.
Possible Hedge Against Inflation:
Some investors view cryptocurrencies, particularly Bitcoin, as a hedge against inflation due to their finite supply, potentially preserving value better than fiat currencies.
Conclusion
Crypto investing need not be intimidating. For those looking to start small and invest smartly, a Bitcoin SIP or Crypto SIP is an excellent entry point. With reliable platforms like Mudrex, you can initiate a SIP in crypto in India, monitor your returns, and progressively build wealth. Whether you seek the best app for Bitcoin SIP or guidance on starting an SIP in Bitcoin in India, this guide is your starting point.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for, or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please verify all information independently.
For more information, visit the source: https://m.economictimes.com/markets/cryptocurrency/how-to-start-a-crypto-sip-a-beginner-friendly-guide/articleshow/123116882.cms
