Crypto exchanges launch SIPs for assets despite uncertainty in India
BENGALURU: Despite uncertainty around cryptocurrency in India, as at present there are no regulations or any ban on its use, many crypto exchanges have already launched Systematic Investment Plans (SIPs) to buy crypto assets.
Just like SIPs in mutual funds, investors can invest periodically to buy crypto assets. The latest crypto investing platform to launch the SIP feature is Y Combinator-backed Mudrex.
Using SIPs, investors can spread out their capital investment instead of making a lump sum purchase, thereby reducing their risk on their crypto investment.
Edul Patel, CEO and Co-founder, Mudrex says, “We have for a long time believed in the power of long-term investing and it comes as no surprise that SIPs were a much-requested feature on Mudrex. With the release of the feature, we hope that users will be able to maximise long-term wealth creation in a new and rapidly growing asset class like crypto.”
Another crypto platform Giottus introduced a SIP feature last month with investment options starting from `100. CoinSwitch too introduced a SIP-like recurring buy plan feature for its investors.
Ashish Singhal, Founder and CEO of CoinSwitch said that as more Indians continue to diversify their investment portfolio with crypto, the CoinSwitch recurring buy plan will allow long-term investors to invest systematically and avoid the impulse to time the market and make emotional trading decisions.
Also, investors should remember that the government has proposed a 30% tax on crypto income. It means if they are withdrawing the money, they will be taxed flat 30% irrespective of the total amount.
Compared to traditional markets, cryptocurrency markets are known for their volatility. Buyers should be well aware of this volatility before investing in them.
Sathvik Vishwanath, CEO and Co-founder of Unocoin says, “It is also important to choose a trustworthy platform. If and when the portfolio grows beyond a point, it is also a good idea to withdraw the crypto to private wallets then keeping it in the platform forever,” he added.