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Afraid to invest in bitcoin? Unocoin's SIP plan might help

You've heard of investing in mutual funds via systematic investment plans. Here's how you can do an SIP in bitcoins.

December 16, 2016 / 02:06 PM IST

Sidhartha ShuklaMoneycontrolOnce a subject of scepticism because of being decentralised and independent of any central authority, the cryptocurrency bitcoin has gained more acceptance by governments and people alike.Despite the growing talk surrounding the digital currency, it still remains a mystery for many and the volatility in its price does not make it a lucrative investment.Bangalore-based startup bitcoin trading platform, Unocoin, launched its full-featured mobile bitcoin app, with 24/7 access to real-time bitcoin market prices and instantaneous trading transactions on November 28. What's even better is it also provides a systematic investment plan (SIP) to buy bitcoins.As is known, SIPs are a conservative way to make any investment, compared to investing in one go.The feature, accessible through the app as well on Unocoin’s website, can be used to average out the price volatility of bitcoin, similar to how it can be used to buy mutual fund units. Using the apps wallet, one can start with as less as Rs 50 per interval.“This feature helps with financial discipline by averaging out your cost and thereby reducing risk and resulting in generating better returns,” Sathvik Vishwanath, CEO and Co-Founder of Unocoin, told Moneycontrol in an interview.The investment method holds the potential to spark a major interest rush in the cryptic currency, not least because the government's demonetisation drive has triggered a hunt for alternative, "safer" currencies and asset classes. Since the cash ban, demand for bitcoins surged through the roof. Vishwanath says the currency attracted a highest of 35 percent premium.-The graph shows that the highest weekly bitcoins were traded in NovemberWith the recent rally in bitcoin sustaining and no regulatory opposition in India, Unocoin aims to quadruple its revenue in the next one year and aims to become profitable in the next 9 months.