Almost everyone who invests in mutual funds has heard of a SIP, i.e., a Systematic Investment Plan. It is one of the most popular ways to build wealth slowly and steadily. But have you ever heard of a SIP in crypto?
Yes, you read that right. SIPs are no longer limited to mutual funds. Investors can now use the same disciplined approach to invest in digital assets like Bitcoin and other cryptocurrencies.
As interest in crypto grows, platforms are introducing structured ways for investors to participate without trying to time the market. One such method is the crypto SIP.
WHAT EXACTLY IS A CRYPTO SIP?
A crypto SIP works much like a mutual fund SIP. Instead of investing a lump sum, you invest a fixed amount at regular intervals, be it daily, weekly or monthly — into selected cryptocurrencies.
Raj Karkara, COO, ZebPay, explains, “A crypto SIP offers investors a structured and disciplined approach to building long-term exposure to digital assets by investing a fixed amount at regular intervals, helping smooth out market movements through rupee-cost averaging rather than short-term market timing.”
However, there are key differences. Mutual funds are professionally managed, priced once a day based on NAV, and operate within a long-established regulatory framework. Crypto markets, by contrast, trade 24/7 and are known for sharp price swings.
Karkara adds, “While mutual fund SIPs follow a similar investment discipline, crypto SIPs enable direct participation in an asset class which trades round the clock and continues to see growing investor interest.”
CAN SIPS REDUCE CRYPTO VOLATILITY?
Cryptocurrency markets are famous for sudden rises and falls. This volatility often discourages new investors. A SIP strategy aims to tackle that challenge by removing the pressure of perfect timing.
Karkara says, “A SIP strategy can be an effective and practical approach for managing crypto market volatility. By investing fixed amounts at regular intervals, investors naturally average their purchase prices over time, helping smooth out the impact of short-term price fluctuations.”
He also points out that SIPs promote consistency and reduce emotional decision-making, something that is particularly valuable in a fast-moving asset class like crypto.
IS BITCOIN THE FIRST CHOICE?
When it comes to crypto SIPs, Bitcoin remains the preferred entry point for many investors.
“We believe Bitcoin is the most established, resilient, and widely understood digital asset for investors entering and building exposure to crypto,” Karkara says.
According to him, Bitcoin continues to be the preferred choice for SIP investors who favour a rules-based, disciplined approach rather than reacting to short-term volatility. This trend reflects growing confidence in Bitcoin’s position as a foundational digital asset.
At the same time, diversification is becoming more common.
“We’ve seen meaningful interest in assets such as Ethereum, Solana, Cardano, XRP, and BNB, among others, which are often chosen to complement a Bitcoin-first approach,” Karkara adds.
HOW MUCH SHOULD BEGINNERS START WITH?
One of the biggest advantages of a crypto SIP is that it lowers the entry barrier.
“For beginners, a crypto SIP can be started with a minimum investment of just Rs 100,” says Karkara.
This allows new investors to begin cautiously and gain exposure gradually. Over time, as their understanding and confidence grow, they can adjust the amount they invest. The focus, he suggests, should be on building a steady habit rather than worrying about the size of the initial investment.
DIVERSIFICATION TOOL OR STANDALONE STRATEGY?
Should crypto SIPs be seen as a diversification tool or a separate investment altogether?
Karkara believes the answer depends on an individual’s financial goals.
“We believe investors can look at crypto SIPs either as a standalone investment approach or as part of a broader diversification strategy.”
Many investors today view crypto as one component of a diversified portfolio that may include equities, fixed income and gold. SIPs make it easier to integrate digital assets into this mix without constantly tracking market movements.
However, investors must also understand the regulatory and tax framework. In India, crypto gains attract a flat 30% tax, along with a 1% TDS on transactions. Exchanges must comply with strict AML and KYC requirements and register with the Financial Intelligence Unit – India (FIU-IND). Being aware of these rules is essential before investing.
Moreover, he believes that instead of treating crypto SIPs as an either-or choice, many investors use them to enhance their broader exposure strategy, adding balance and flexibility as markets and goals change.
WHO SHOULD CONSIDER A CRYPTO SIP?
A crypto SIP may suit investors who prefer a disciplined, long-term approach and want exposure to digital assets without watching price charts every day. It may appeal to those comfortable with volatility and open to including crypto in their broader financial plan.
As Karkara puts it, “We think that a crypto SIP tends to be most relevant for investors who are looking to bring structure and intentionality into how they allocate to digital assets over time, especially those who appreciate a simplified, repeatable way to participate in the market without being drawn into reactive decision-making.”
At the same time, crypto SIPs may not be suitable for those seeking guaranteed returns or those uneasy with sharp market swings.
Simply put, SIPs have long been associated with mutual funds, but the concept has now found its way into the crypto world. For investors curious about digital assets yet wary of volatility, a crypto SIP offers a more structured and disciplined entry point.
It is not a shortcut to instant gains, nor is it free from risk. But for those willing to take a long-term view, stay consistent and understand the rules of the game, a crypto SIP could be a thoughtful way to participate in the evolving digital economy.
