The trade-off
| SIP (SBP) | Lump sum | |
|---|---|---|
| Timing risk | Spread across many prices | One price decides the result |
| When prices rise steadily | Usually trails a lump sum bought early | Usually ahead |
| When prices fall then recover | Often averages in cheaper | Feels worse on the way down |
| Effort and nerves | Automatic, fewer decisions | One decision, then many second thoughts |
| Fees on Unocoin | 0% SBP fee | 0.5% plus 18% GST on the fee for an instant buy |
| Tax | Many small purchase records | One purchase record |
Which one is better depends on the path the price takes afterwards, and nobody knows that path in advance. That is the honest reason a regular plan appeals to many first-time buyers: it removes the need to guess.
Test both on real prices
Use the SBP Time Machine. Try a monthly plan against a single start-month lump sum of the same total. Notice how much the answer changes with the start date. That sensitivity is the lesson. Past prices do not predict future prices.
A middle path
Some people put in a modest amount at the start and set up a regular plan for the rest. Whatever you choose, use only money you could hold through a large fall. This is education, not advice.
Common questions
Is SIP better than lump sum for Bitcoin?
Neither wins every time. A lump sum bought before a long rise does better, a SIP often does better when prices fall and recover. Which happens is not knowable in advance.
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.