What it is
On IndiaBitcoin, powered by Unocoin, it is called a Systematic Buying Plan (SBP). You choose an amount, from ₹10, and a frequency: daily, weekly or monthly. The plan buys that rupee amount of Bitcoin each time. SBP trades carry a 0% fee on Unocoin. Instant buys and sells are charged 0.5% plus 18% GST on the fee.
Because the rupee amount is fixed, you receive more Bitcoin when the price is lower and less when it is higher. This is rupee-cost averaging. It does not remove risk, and it does not guarantee a profit.
The arithmetic of small amounts
- ₹10 a day is ₹3,650 a year.
- ₹500 a week is ₹26,000 a year.
- ₹5,000 a month is ₹60,000 a year.
One Bitcoin is 100,000,000 satoshis, so you never have to buy a whole coin.
See it on real prices
The SBP Time Machine replays a plan against daily Bitcoin prices in rupees since 2016. Pick an amount, a frequency and a start month and it shows the total put in, the Bitcoin accumulated and the value at the live price. It also shows a bank fixed deposit at an assumed 7% for comparison, labelled as an assumption. It is a look backward, not a forecast.
Honest risks
- Bitcoin's price can fall sharply. A plan can be worth less than you put in.
- Crypto is unregulated in India and there may be no regulatory recourse for loss.
- Start with an amount you could hold through large swings.
- Sales are taxed at a flat 30% with no loss relief, see tax on a Bitcoin SIP.
Next
- SIP or lump sum?
- Ask Satoshi, in English, Hindi, Kannada or Tamil.
Common questions
What is the minimum for a Bitcoin SIP in India?
₹10, through a Systematic Buying Plan on Unocoin, with 0% SBP fee.
Is a Bitcoin SIP safe?
It reduces the pressure of timing but it does not remove risk. Bitcoin's price can fall and crypto is unregulated in India. Only invest what you can hold through large swings.
Can I change or stop a SIP?
You can manage your plan in the Unocoin app. For account questions, contact Unocoin support.
Risk: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Everything here is education, not investment, tax or legal advice.