When investment is made in crypto via SIPs, it turns out to be the finest strategy for investment. Beyond reducing the risk, this staggers the investments. This makes SIP one of the best investment plans in cryptocurrency that helps generate wealth across the long term.
Typical factors make cryptocurrencies an excellent medium of investment because, over the years gone by, investors have come across reasonable gains investing in cryptocurrencies.
But, when we take the prior few months gone by into consideration, we see that some ups and downs have also come into the picture. Investors are hence considering the ways to slow down and reduce the risks, when investing in cryptos such as Ethereum, Bitcoin, Dogecoin, and Shibu Inu. Having a proper cryptocurrency investment plan in place hence becomes important.
Another important development that lays an effect on crypto investments is the wait for regulations and the levying of crypto taxes. This makes investors conscious regarding what they should be doing to safeguard their investments in crypto.
In this article, we attempt to help out the crypto investors with these issues and discuss the Recurring Buy Plan (RBP). RBP is a systematic way of investing in crypto assets, via which, one not just reduces the risks but staggering the investments also simplifies. This clears the path for generating wealth over the long term.
The right way to invest in crypto
As of recent, crypto exchanges have come up with three products that help counter the volatility often associated with the markets. They are:
- Systematic Investment Plans (SIPs)
Via a SIP, a crypto investor can invest a predefined amount in specific crypto each month. This lets one leverage the power of rupee cost averaging, and one does not have to conduct impulsive buying.
- Recurring Buy Plan (RBPs)
RBPs bear similarities to SIPs, but are used primarily in equity markets, such as mutual funds and stock markets.
- Crypto Investment Plans (CIPs)
CIPs also have many similarities with conventional SIPs. But, beyond the same, they put forward the feature of investing a particular amount each week in predefined cryptos. This makes it a great crypto investment plan.
The primary purpose of having these products in place is to ensure that the risk reduces, investments are staggered, and the impulsive buying and selling of cryptos can be kept in check. Moreover, these products further ensure that the investors benefit from compounding returns and develop a portfolio for long-term growth.
The advantages that these plans put forth include:
- Reduce the risk
- HOLD friendly
- Ensure stagger investments
- Leverage the benefits of rupee cost averaging
- Bring wealth across the long term
- One does not have to worry about timing the market
- Induces financial discipline
- Avoid trades associated with impulsive selling or buying
The Crypto market is undoubtedly associated with its volatilities, which makes it a murky space when we consider the high taxes being imposed, and the regulations. An important risk that comes into the picture is the odds of losing the entire investment made instantly.
But crypto exchanges from across India are countering these matters via products such as Recurring Buy Plans (RBPs), Systematic Investment Plans (SIPs), and Crypto Investment Plans (CIPs). The key advantages that these products bring with them are that they help avoid impulse selling and buying, stagger the investments and reduce the risks.