Cryptocurrency exchanges are beginning to offer systematic investment planning (SIP) routes to invest in Bitcoin, Ethereum, and many other cryptocurrencies. With virtual digital coins finally gaining legal status in our country, the crypto industry is preparing to launch more products to investors. Similar to the SIP of investment trusts, crypto exchanges such as Bitbns, ZebPay, BuyUcoin allow you to invest in crypto through the SIP route. Similarly, CoinSwitch, which claims to be the largest crypto investment app with 15 million registered users, recently launched a subscription plan (RBP), a systematic way to invest in crypto assets.
Cryptography is an attractive asset class and is more volatile than traditional assets. A systematic investment method eliminates the risk of temperamental decision making. The subscription plan also allows investors to systematically purchase crypto and experience the power of compound interest by making regular and decentralized purchases, said Ashish Singhal, founder and CEO of CoinSwitch. increase.
Arihant Bardia, CIO of Valtrust Capital, states that cryptocurrencies are a new asset class in both India and the world. “It’s time for sophisticated investors to better understand the risks in this area and access investment opportunities,” he said.
“As more Indians continue to diversify their investment portfolio in crypto, regular purchase plans allow long-term investors to systematically invest, time the market and make emotional trading decisions, according to Shinharu. It makes it possible to avoid the urge. Users with a low risk profile to explore this new asset class, “Singhal adds.
According to the Bitbns SIP Calculator, investing £ 1,000 per month in Bitcoin for 5 years will generate a profit of Rs 372,000. The total investment for 5 years will be £ 60,000.
Similarly, if you invest the same amount in Bitcoin every month for the past three years, it will be Rs 164,000. In the case of Ethereum, the profits would have been huge. A total of £ 36,000 invested through a £ 1,000 SIP each month will be Rs 456,000 over the same period.
However, huge past profits are not the only reason to invest in crypto assets. Cryptocurrency carries a high risk. Investors should not act in fear of FOMO (FOMO).
The government put an end to long-standing speculation about cryptocurrencies when Finance Minister Nirmala Sisaraman introduced the long-awaited cryptocurrency system in last week’s budget. FM has announced a comprehensive tax rate of 30% applicable to the transfer of “Virtual Digital Assets” (VDA). Hours after the budget announcement, FM made it clear after the budget meeting that cryptocurrencies could not be converted into currency, but would be treated as a national asset.
“Currencies are currencies only if they are issued by a central bank, even if they are cryptocurrencies. Others are loosely called cryptocurrencies, not currencies,” said Sisaraman. ..
Amitabh Kant, CEO of NITI Aayog, confirmed that the government has not banned cryptography in the country. “Initiating taxation means that a regulatory mechanism will be established regardless of whether some of it needs to be regulated by RBI or SEBI. The budget provides absolute clarity. The government has not banned cryptocurrencies. In fact, they treat cryptocurrencies as an asset class defined as virtual digital assets, “Kant told Fortune India.
According to a CREBACO report, India’s crypto asset market is worth $ 15 billion and is made up of over 6 million users, which is 0.5% of India’s population.
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