Cryptos are extremely volatile. It is difficult to track these assets on a continuous basis. These can cause extreme loss or profit, depending on when one enters the market.

In crypto investments, we can buy them directly or through ETFs and through interest-bearing funds. One more way to invest is through SIP-like products. These are also called ‘recurring buy plan’. It works on the line of SIP investments in mutual funds. However, cryptos are still unregulated. SIP-like investments help in dollar cost averaging. Dollar cost averaging refers to investing a fixed amount of money in a fund, stock or crypto at regular intervals irrespective of the fluctuations in the value of the assets. It results into buying more assets when the value is low, thus reducing the average cost per unit.

The transactions are done through a crypto exchange or investment platform that offers SIP. One can start SIP in any virtual assets, say Bitcoin or Ether or a basket of tokens. The process is similar to mutual funds SIP. However, there is no cut-off time in crypto investments, as it is 24×7 market. It is generally monthly SIP but there could be daily SIP. Crypto exchanges use UPI route for payments.