Cryptocurrency is placing itself as a new asset class available for investment. And there are various development taking place every day.
Investing in cryptos has become easy thanks to various apps that facilitate investing in dollars and INR.
All this has led to India having the highest number of crypto investors globally.
Many big investors are optimistic about crypto and accept that it will become big because of technological benefits and use cases in Decentralized Finance(Defi) and Decentralized Apps(DApps).
Apps like Vauld are listing new coins and coming up with new features like Automatic Investment Plan(AIP); I will be doing a complete Vauld AIP Review in this article.
You might already be well aware of SIPs in mutual funds. SIPs bring consistent investment to mutual fund houses every month.
SIPs have also made it easy for ordinary retail investors like you and me to participate in the stock markets.
For millions of people in India who can invest a fixed amount every month but cannot track and analyze the stocks day in and day out, SIPs have been a crucial instrument to get this population to invest.
The same is happening in the crypto market, now you do not need to sit and track every day. Just automate the investment.
Why automate and how we will go through step by step.
- What Is Vauld AIP?
- Why Crypto SIP?
- How To Set Up Vauld AIP?
- How To Track Ongoing AIP?
- How To Stop Or Pause AIP?
- Frequently Asked Questions
What Is Vauld AIP?
AIP is an automatic Investment Plan where you find various baskets of cryptos or even create your own basket and start systematic investments.
You can even set rules to buy on the dip of 2% – 10% or Once A Day, Twice A Day, Or Thrice A Day.
Another rule you can use is to buy Daily, Weekly, Or Monthly for 1 Month, 3 Months, Or 6 Months. This is like a traditional SIP in Mutual Funds but more flexible than that.
I will go through how to create the AIP but first, let’s see why it makes sense to invest in SIP mode in cryptos.
Why Crypto SIP?
The Crypto market is too volatile; it is tough to estimate its peak and low.
If you are not a full-time trader, it becomes difficult to track tokens every day and decide on buy and sell.
Also, you should be ready to digest 10-20% of up and down in a day if investing in cryptos.
#2. Control Impulsive Investment
Any crypto tokens price can go up and down by 10 -20% in a day; which leads to a huge urge to buy and sell during the day. This mindless buying and selling of emotions without any rationale can result in losses.
This kind of impulsive buying and selling should be avoided to make money in cryptocurrencies. And the better way would be to automate the process.
#3. No Time To Track Cryptos Daily
Most of us are not full-time traders in the stock or crypto market and have our job or business to look after.
To invest you need to have a constant inflow of cash and our job or business is the source, so we cannot sacrifice that to sit and track cryptos daily.
In this scenario, the best is to keep on investing regularly in good assets without tracking the market too much.
#4. Dollar-Cost Averaging
Dollar-cost averaging is dividing your money and investing at different levels to reduce the impact of volatility.
As crypto is one of the most volatile assets, you should avoid investing in bulk at any level and go systematically.
In this image, red dots depict investments at regular intervals through all the volatility, and the line shows the average price going up slowly.
If you make a lump sum investment at the wrong levels, then it would take a lot of time to see any gain. Dollar-cost averaging is the perfect technique to lower investment costs on a volatile asset.
The solution to all this is to automate the crypto investment so that there is no intervention of human emotions, one of the ways is to do Vauld AIP; how will we see next.
How To Set Up Vauld AIP?
Step 1: Create Account On Vauld
To create your first Vauld AIP, you need to have a Vauld account. Click on the link below to open your account and save 20% on trading fees.
How To create an account? Do read this complete Vauld Review.
Step 2: Create AIP
Once your account is created, login into Vauld and select Invest > AIP option.
On the right, you will find a bunch of readymade baskets on which you can start the AIP.
A basket is a collection of a certain number of tokens. Each basket is made with a specific goal to fulfill.
E.g., The Best Of Crypto basket comprises only BTC and ETH, which account for 75% of crypto market capitalization.
In the same way, there are other baskets like Best Of Centralized Tokens and Decentralised Everything, etc.
Either choose one basket from Vauld AIP or create your basket by clicking on Create New Basket. Select the tokens to include in the basket and click on Create Allocation.
If you include only one token in the basket, 100% fund allocation is to that token but if you include more than one then you get an option to control the fund allocation to specific tokens as below.
Step 3: Setup The Frequency
Vauld provides a feature to set up the frequency of purchase for the basket. You have 2 options either Buy On Dip or set as Daily, Weekly, Or Monthly.
If you select Buy On Dip then have to select on fall of how many % the purchase should trigger.
Set the Duration for the AIP and Amount, Click On Create AIP, and done.
Once created, AIP cannot be edited or changed; for any change, you have to delete the existing one and create a new AIP.
How To Track Ongoing AIP?
You can track ongoing AIPs under Invest > AIP
When you create AIP, the first transaction will take place on the same day and the next transaction date will be calculated from thereon.
Every time AIP is executed you will receive a confirmation by mail.
How To Stop Or Pause AIP?
To Stop or Pause go into Ongoing AIP and select PAUSE or STOP as below.
To make good money in crypto in long term you need to have a conviction on the blockchain and cryptocurrencies which will come if you keep on learning.
Do not invest in tokens you don’t understand and the safest would be to invest in ones that are already big and doing good.
Invest regularly some portion of your savings into cryptos through AIP. I hope you now know how to do Vauld AIP, it’s pretty easy and straightforward.
Frequently Asked Questions
What time does the daily AIP get processed?
AIP gets executed at 9:30 UTC on the execution day.
Can I close an AIP before the predefined time?
Yes, you can either STOP or PAUSE your AIP at any point.
What if I don’t have enough currency in my wallet when the AIP is getting processed?
In this scenario, AIP gets paused and a mail is sent to you regarding the same. You will have to start the AIP again manually.
What are the fees when buying through AIP?
The rate for AIP transactions is the same as instant buy at that point.
How is the dip percentage calculated?
To calculate the dip percentage, the current price of the basket is calculated against the price 24 hours earlier.