Investing through Systematic Investment Plan (SIP) in mutual funds is fairly common. Financial planners recommend investing in a disciplined manner on a regular basis to avoid impulsive reactions and short term volatility. Now, cryptocurrency exchanges like ZebPay that recently launched its SIP in Bitcoin and Ethereum, are following suit.
For the uninitiated, SIPs work their best for an asset class which is volatile in nature. Investing via SIP provides cost averaging benefit in the long term. “Bitcoin and Ethereum prices can see large fluctuations depending on the demand and supply in the market, therefore, rupee cost averaging is the best way to get an average price on these assets,” said ZebPay in their announcement release.
ZebPay, one of India’s oldest cryptocurrency exchanges, last month launched a new application called ZEBB that allows users to invest in the top two largest cryptocurrencies -- Bitcoin and Ethereum via SIP. The app allows users to invest as low as Rs 100.
ZEBB app allows users to automate their SIP investing on a regularly recurring schedule (such as weekly), and enjoy instant buy/sell with 0 per cent buying fees. Users simply have to sign up, complete the KYC process and start buying Bitcoin or Ethereum. The app is available on Play Store and Apple Store for all Indian users.
“At ZebPay, we have always encouraged investors to dollar or rupee cost average. SIP is known as one of the most efficient models of wealth creation, helping users to invest in the best possible average buy price. If, for instance, an investor had bought Rs 100 Bitcoin every week in the past year, they would have gained around 72% on their total investment of Rs 5,200,” says Avinash Shekhar, Co-Chief Executive Officer, ZebPay. With ZEBB, Shekhar adds, the company is making it easy and effortless for investors to do so.
Moreover, Bitcoin and Ethereum are revolutionary technologies with tremendous growth potential. Bitcoin is the largest and Ethereum is the second largest cryptocurrency. Other cryptocurrency exchanges like Bitbns’s Bitdroplet and Unocoin also allow the SIP facility.
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