Crypto SIPs Are Gaining Traction In India. Here's Why It Is Catching On

Notably, the average age of Crypto SIP investors is 34, slightly higher than the overall average of 30 for crypto investors.

Since their introduction in 2022, Crypto SIPs have gained significant traction across India, especially in major cities.

Source : David Peterson/Pexels

Systematic Investment Plans (SIPs) have long been a cornerstone of traditional investment strategies, particularly in stocks and mutual funds. It is encouraging to see this approach gaining traction in India’s crypto exchanges, fueled by a surge in grassroots adoption. By launching user-friendly products that facilitate seamless entry into the crypto space, these platforms empower millions to invest with minimal capital — some as little as Rs 100. This development enhances accessibility and fosters a disciplined investment culture among new entrants to the market.

Appeal Of Crypto SIPs

Crypto SIPs offer a structured approach to investing by allowing individuals to allocate a fixed amount to crypto assets at regular intervals. This method effectively addresses the challenges associated with market volatility while providing several unique benefits.

One of the primary advantages of Crypto SIPs is their ability to mitigate risk through rupee-cost averaging. This strategy involves purchasing more crypto when prices are low and less when they are high, smoothing out the impact of market fluctuations and reducing the likelihood of making substantial investments at inopportune times.

Moreover, Crypto SIPs encourage disciplined investing by promoting consistent contributions over time. This regular investment pattern helps investors stay aligned with their financial goals, regardless of market conditions and makes entry easier with smaller amounts. As a result, crypto investments become accessible to a broader audience.

Shift Toward Long-Term Investing

Since their introduction in 2022, Crypto SIPs have gained significant traction across India, especially in major cities. Notably, the average age of Crypto SIP investors is 34, slightly higher than the overall average of 30 for crypto investors. This trend indicates that older demographics find Crypto SIPs to be an appealing entry point into the crypto market, aligning with their preference for long-term, steady growth.

This widespread adoption signals a shift in investor behaviour towards a more disciplined, long-term approach. To further enhance user experience, exchanges are planning to introduce an auto-debit feature, allowing investors to automate their SIP contributions and eliminate the need for manual intervention. Popular choices for Crypto SIPs include Bitcoin, Ethereum, Cardano, Polygon, and Solana.

How To Start Investing In Crypto Via SIP In India

To start investing in Crypto SIPs in India, the first step is selecting a reputable SIP service provider that offers crypto investment options. Look for an exchange that prioritises security, and compliance with regulatory requirements, including registration as an FIU-IND entity. Given the long-term nature of SIPs, it is essential to choose a well-established and compliant exchange.

Once you’ve identified a suitable provider, complete the registration process and undergo the Know Your Customer (KYC) procedures mandated by regulatory guidelines. This typically involves submitting identification documents to verify your identity.

After completing registration and KYC verification, you can choose the crypto assets you wish to invest in and specify the amount for your SIP. It’s important to carefully determine the day and frequency of your investments, typically available as daily, weekly, monthly, or quarterly options. Set a schedule that aligns with your budget and financial objectives to maximise the benefits of your SIP strategy.

(The author is the Chief Growth and Marketing Officer at CoinDCX. This article has been published as part of a special arrangement with CoinDCX) 

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.