Good News! For all users to start a Systematic Investment Plan (SIP) in digital crypto gold on the SunCrypto app. The phrase “crypto gold” refers to gold-backed cryptocurrencies that are accessible via SIP-style investing.
Starting a SIP in Digital Crypto Gold
“Starting a SIP in Digital Crypto Gold” (often referred to as Gold-backed tokens) is a modern strategy that combines the stability of gold with the efficiency of blockchain technology. Unlike traditional digital gold (which is held on SunCrypto), “Crypto Gold” usually refers to tokens like PAX Gold (PAXG) or Tether Gold (XAUt), where 1 token equals 1 troy ounce of physical gold.
On SunCrypto, you can start a Digital Crypto Gold SIP with as little as ₹100, allowing you to gain market experience with a minimal investment.
Understanding the Asset “Digital Crypto Gold”
- Ensure the token is backed 1:1 by physical LBMA-certified gold bars stored in secure, audited vaults (e.g., Brink’s).
- Most digital crypto gold runs on the Ethereum blockchain (ERC 20). This affects where you can store it and the “gas fees” (transaction costs) you pay.
- Understand that holding the token has a direct ownership on a physical asset, which can often be redeemed for actual gold if you hold enough units.
Mechanics of a Digital Crypto Gold SIP
- Investing a fixed amount (e.g., ₹1,000 or $50) at regular intervals to lower the average purchase price over time.
- Unlike physical gold, you can start with very small amounts (fractional ownership).
- Using exchange “Recurring Buy” features to automate the process so you don’t have to time the market.
Risks and Safeguards for Digital Crypto Gold
- The risk that the company issuing the token (like Paxos or Tether) doesn’t actually have the gold they claim.
- The technical risk that the code governing the token has a bug or vulnerability.
- Crypto laws are still evolving. In many regions (like India), digital crypto gold is treated as a Virtual Digital Asset (VDA), not just “gold.”
Platform Selection for SIP in Digital Crypto Gold
- Choose SunCrypto crypto exchange that supports recurring buys for digital crypto gold tokens.
- Decide whether to keep your gold on SunCrypto with multisignature Ledger insured Cold Wallet.
- Be aware of the difference between the buying and selling price, which can eat into your returns.
Taxation (Crucial Topic)
- VDA Taxation: In many jurisdictions, digital crypto gold is taxed under crypto laws. In India, for example:
- 30% Tax on any gains (with no indexation benefits).
- 1% TDS on every sell transaction.
- Loss Offsetting: Unlike stocks or physical gold, you often cannot offset losses from one crypto asset against gains from another.
How to Start a SIP in Digital Crypto Gold (General Steps)
- Account Setup and KYC: If you haven’t already, download the SunCrypto app and complete the registration and mandatory KYC (Know Your Customer) verification process. This requires documents like your PAN and Aadhar card.
- Fund Your INR Wallet: Link your bank account and deposit the desired amount of Indian Rupees (INR) into your SunCrypto wallet using a supported method like UPI or bank transfer. Ensure you have sufficient balance to cover your first SIP installment.
- Navigate to the SIP Section: On the app’s home screen or main menu, look for and select the “SIP” or “Recurring Buy” option.
- Configure Investment Details:
- Select Asset: Choose the cryptocurrency you want to invest in (e.g., PAX Gold (PAXG) or Tether Gold (XAUt)) from the available list.
- Set SIP Amount: Enter the fixed INR amount you wish to invest in each cycle (minimum of ₹100).
- Choose Frequency and Date: Select how often you want the investment to occur (daily, weekly, or monthly) and pick the specific date for the deduction.
- Review and Confirm: Review all the details (asset, amount, frequency, and date) and accept the terms and conditions. Click “Set SIP” or “Start SIP” to confirm and activate the plan.
Once set up, the amount will be automatically debited from your INR wallet on the scheduled date, and the corresponding crypto will be purchased at the prevailing market price. You can track and manage your SIP performance from your portfolio section in the app.
Disclaimer: Crypto products & NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.