What is a crypto SIP or DCA plan?
SIP is commonly used in India to describe investing a fixed amount on a schedule. In crypto, the same behaviour is often called dollar-cost averaging. It spreads purchase timing across many dates, but it does not guarantee profit, reduce the asset’s underlying risk or prevent a long period of losses.
How this calculator works
The calculator converts the annual return assumption into an effective monthly rate and models one equal contribution at the end of every month. At 0%, estimated value equals total contributions. A negative assumption can model loss scenarios as well as positive ones.
What the estimate leaves out
- Changing crypto prices and the sequence of monthly returns
- Trading fees, spreads, slippage and network costs
- Tax on later VDA transfers and applicable TDS
- Exchange failure, frozen withdrawals or custody loss
- Stablecoin, bridge, smart-contract and banking risk
- Missed, increased or irregular contributions
Crypto SIP risk checklist
- I can afford the contribution without borrowing or delaying essentials.
- I understand the asset rather than buying only because it fell.
- I checked platform access, withdrawals, custody and concentration risk.
- I preserve every purchase and INR cost record for tax reporting.
- I have a rule for reviewing, pausing and eventually exiting the plan.
- I tested a negative-return scenario before relying on the result.
Frequently asked questions
No. Regular timing does not guarantee capital protection or profit.
No. It spreads entry dates; the accumulated holding still changes with the market.
Purchases create records. A later sale, swap or spending transaction can require a VDA calculation.
Use several assumptions, including a loss. The calculator does not supply a prediction.