Flat rate investments in cryptocurrencies are risky. And timing the market is difficult. This is exactly where a disciplined approach to investing helps. Much like SIP in mutual funds, analysts in the cryptocurrency field have started to admire SIP in bitcoin. This is to eliminate the risk of capricious decision making. Bitbns, allows investors the possibility of investing regularly in Bitcoins via a systematic purchase plan (SPP). It works on the same lines as SIP in mutual funds. SPP in bitcoins by Bitbns is called “Bitdroplet”.
“Bitdroplet is a systematic buying plan for Bitcoin DCA that allows you to invest fixed amounts at regular intervals. Bbitcoin DCA works like a SIP in Bitcoin. You buy fixed amounts of Bitcoin at regular intervals, so you buy at different price points to counter the impact of volatility, ”says Gaurav Dahake, CEO of Bitbns.
Bitdroplet allows investors to start small by investing as little as ₹75 per day. It supports daily, weekly or monthly investments.
Return potential of SIP in Bitcoins
According to Bitdroplet.com, if you had invested $ 10 since January 2011 and invested once a month, your investment would be worth almost $ 700,000 today. Essentially, your total investment would have been (12 x 10 x 9) = $ 1,080.
“Can you think of another investment product that gives you over 64,000% return in a decade? Nobody can. And that’s what makes a bitcoin SIP unbeatable in terms of return,” says Gaurav Dahake.
In a shorter three-year term, via bitcoin SIP, you would have invested $ 360 ($ 10 per month) and made over $ 700. That’s almost a staggering 94% return.
Here’s how a monthly investment of ₹500 in bitcoins over the past five years have reportedly increased against other asset classes. However, there is no guarantee of past performance in the future.
The risk still exists
However, SIP in Bitcoins does not make cryptocurrency any less risky. Investors should make an informed decision by speaking with their financial advisors before investing. They should understand how the segment works before they jump in by just looking at the feedback.