Cryptocurrencies are among the most volatile instruments available. That is why astute investors prefer a methodical investment strategy (SIPs). You can begin with a minimum of Rs 100 and invest in SIPs on a daily, weekly, or monthly basis. An SIP in a cryptocurrency protects you from large losses if the value of your coin unexpectedly drops.
Features of BuyUCoin Crypto SIP
Benchmark
A benchmark is an unmanaged set of securities that are used to gauge the performance of an underlying investment. It is a standard against which the performance of a crypto SIP is assessed. BuyUCoin Crypto SIP is benchmarked against the top 30 Crypto Assets(Coins) based on Market Capitalization and growth potential with impact investing.
Rupee Cost Averaging
The unique feature of Crypto SIP is the Rupee Cost averaging, where you end up buying more units when the market is low. Conversely, you will buy less when the market is on the upswing. This is because of the inherent feature of SIP, where at every market correction, you will buy more and Start your sip in bitcoin.
Not only does this reduce your cost of investment, but also results in significant gains. The mutual fund SIP method is based on the principle of rupee cost averaging. It helps to mitigate the “timing” factor, and if you invest consistently, regardless of market level, it can help you earn higher potential returns.
It is critical to understand that rupee cost averaging is an effective long-term strategy. This method entails purchasing a set amount of cryptocurrency at regular intervals, similar to the SIP method of investing in mutual funds. One does not even consider the price; one simply purchases in order to accumulate it for investment purposes at predetermined intervals of time.
NAV (Net Asset Value)
In layman’s language, it is the price per share or unit of a bitcoin or cryptocurrency. It will be determined on the basis of time and date of investment in SIP. For Example today the price of BTC is INR 2700000 so for those who invest via sip today the NAV will be INR 2700000 and if someone invest tomorrow and the price is 290000 the NAV for that investor will be INR 290000
Investment Horizon
An investment horizon is the amount of time that an investor is willing to keep his or her portfolio. It is generally proportional to the amount of risk that an investor is willing to take.
It is the amount of time one expects to hold an investment before needing the money back. Time horizons are largely determined by investment objectives and strategies. It varies from Monthly, Quarterly, 1 year , 5 year and so on. You can close your sip subscription anytime.
Short Term – 1 year
Long Term – 5 years
Medium Term – 3 years
Instant Redemption – Anytime
Return on Investment
Return on Investment is 12%. The inflation rate is the percentage increase or decrease in prices over a given time period, which is typically a month or a year. The percentage indicates how quickly prices increased during the period. Inflation is a “silent” threat to investors because it erodes real savings and investment returns.
However, because the interest rate, or coupon, on most fixed income securities remains constant until maturity, the purchasing power of interest payments decreases as inflation rises.
The return which is shown is inclusive of the rate of inflation, that every year the rate of inflation increases and the return great and inflation will not hurt the investment.
Asset Allocation
Asset allocation is an investment strategy that aims to balance risk and reward by allocating assets in a portfolio based on a person’s goals, risk tolerance, and investment horizon.
The idea is to keep rebalancing your overall asset allocation in response to changes in your risk tolerance. The number of funds will be determined by the total monthly SIP that you intend to set up.
More than the number of funds, however, the selection of good funds is critical. It is applicable only for crypto SIP like Bitcoin sip, Ethereum SIP, Ripple sip, Mix of Stable Coins, NFT, Hybrid SIP – Bitcoin + Stable Coin + NFT.
Charges
There are no charges for investing in Crypto SIP with BuyUCoin and no charges on redemption and subscription of the SIP.
Exit Load : NIL
Entry Load : NIL
Their is no investing charges or trade fees and zero charges on Redemption of SIP before the maturity.
FAQs related to BuyUcoin Crypto SIP
Question: How many cryptocurrency available for SIP in BuyUcoin?
Answer : Investors can create a SIP for any currency that is active in production. But it depends on the plan they choose.
Question: What is the minimum and maximum Amount for SIP?
Answer : It depends on the choice of SIP plan by investors.
Question: What are the risks associated with the SIP?
Answer : The risks in SIP investment are subjected to the SIP Plan and the market.
Question: Can I direct Invest in SIP with INR? Or is it only for stable coins?
Answer : You can invest in SIP through INR.