Cryptocurrencies have gained so much popularity around the world, especially in India, in the last year. After a bloodbath in the crypto market, it has started gaining its position once again. Although the major currencies are not near their all-time highs the volume of the market has broken its all-time high.
This time people are hesitant to sell in a panic and trying to hold the position. Daily thousands of people are entering this market to gain profits, but most of them have no or very little knowledge about Cryptocurrencies. In such a situation, it is important to know what are the ways in which investing in cryptocurrency will be safe. If you too are looking to invest in this market but lack much knowledge, then here are some alternatives to invest in this market without having much know-how.
Before going further, it is important to understand here that volatility in the Cryptocurrencies market is very significant compared to the stock market. If there is a huge profit in a moment, then there can be a huge loss in an instant. That is why it is said that only those who are fond of taking risks should try it. Perhaps this is the reason why most of the investors who invest in cryptocurrencies in India are young. These youths are having more fun investing in cryptocurrencies than in the stock market. They also have no problem taking risks.So, if want to take a plunge into this market without much risk, here are the alternatives.
SIP like arrangement:
Now, you to step into the crypto market and want to take risks in less money, then there is a SIP like facility in crypto for that. Exchanges like BitBNS, Unocoin, Wold, Zebpay offer the facility to start SIP in cryptocurrencies. You can start investing in it with Rs 100 and can do it daily, weekly or monthly.
However, it is not like mutual fund SIP in which you can expect guaranteed returns over time. In mutual fund SIP, it is almost certain to get benefits in the long term. This is not necessarily the case with SIP in the cryptocurrency market. If the rate keeps falling in the long term, then you cannot expect good returns. The good thing is that you can start investing with less money and try to get returns. However, on a positive note, if you see the past trend cryptocurrencies have been giving humongous returns in a long term. Moreover, returns from the bullish crypto market are much higher than the mutual fund. So, if you want to take risks with low money, this is the best option for you.
Invest in Crypto-Basket:
Crypto Exchanges allows people to invest in crypto baskets or single coins. In this also you can start investing from Rs.100. If you want to take full advantage of this, then buy coins of different cryptocurrencies and create your own crypto basket and keep investing in them from time to time.
For this, initially by taking coins like bitcoin or Ethereum, you can start making baskets. These cryptos have been giving good returns from the beginning, so there is a possibility in the future as well. According to experts, money should be invested first in large capital coins such as bitcoin, then medium market and finally small market cap cryptocurrencies.
Choose Indexed Funds or Token funds:
On the lines of indexed funds for investing in the equity market, a crypto index fund has also been started. Many Crypto Exchanges around the world are offering these indexed funds. These funds work like ETFs in the equity market, where you do not invest in any single token but various tokens in pre-decided tokens.Considering the kind of movement that is being seen in the cryptocurrency market, many investors are now building crypto portfolios like mutual funds and equity funds. These indexed funds are managed or monitored by professional traders. So this solves the problem of studying charts and investing. You can invest in any indexed fund by looking at its past returns in long as well as short terms.