Till now, Bit droplet was probably the only platform that allowed SIP in crypto, gold and silver. And now Zebpay has started the option of starting a mutual fund like SIP in BTC and ETH. The minimum sip amount will be Rs 100, and you can go as high as you want. You can go and install ZEBB in order to use the option of SIP. But why do you even need a SIP option? Let’s see!
SIP or a Systematic Investment Plan is a very important part of any investment. In the case of making lumpsum, investment prices play a very important role. For example, if you make one investment of Rs 120 in a year on the day when the price is at the all-time high of Rs 12, then you get only 10 units. On the other hand, if it is at a low of Rs 8, then you get 15 units which is a 50% difference. So, in the case of a lumpsum investment, time plays a very important role, and it’s all about luck.
But to make good investments, you can’t rely on luck and hence the SIP plan. In this case, you make an investment of Rs 10 for 12 months throughout the year. And due to the averaging of the price, the units you get will be somewhere between 10-15. Now, this is not the best nor the worst but is definitely a much safe choice. It is also easy to carry out as you don’t need a large sum of money at once.
Zebpay’s SIP option
The SIP option for BTC and ETH is awesome as it allows for proper dollar-cost averaging. Crypto has very high volatility, one day, it is making a new high, and the next week, it is 40% down. So, if you do a SIP, the market volatility is of no concern to you. Even the CEO of Zebpay said that if someone made a weekly SIP of Rs 100 over the course of last year, he/she would have gained 72%. And this is considering the immense swings that BTC has seen. So, yeah, in crypto, SIP is the way to go.
What are your thoughts on Zebpay enabling the SIP option for BTC and ETH? And do you make lump sum investments or believe in SIP? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Former US Treasury secretary has changed his views on Bitcoin.