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    What is SIP (Systematic Investment Plan)?

    एसआईपी
    A crypto SIP means investing a fixed rupee amount into cryptocurrency at regular intervals, similar to mutual fund SIPs popular in India. It applies the DCA strategy to crypto.

    Full Explanation

    SIP (Systematic Investment Plan) in crypto works the same way as mutual fund SIPs familiar to Indian investors. You commit to investing a fixed amount (₹500, ₹1000, ₹5000) at regular intervals (daily, weekly, monthly) into one or more cryptocurrencies. This is essentially Dollar Cost Averaging (DCA) applied to crypto. Benefits: removes emotional buying, smooths volatility, builds discipline, accessible with small amounts. Most Indian exchanges support auto-buy features for crypto SIPs.

    Example

    A monthly ₹5,000 SIP in Bitcoin since 2020 would have generated significant returns despite the 2022 bear market. Fedha Academy's SIP Calculator lets you backtest different scenarios.
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