A Rs 5,000 monthly SIP in TRON has delivered strong long-term gains, significantly outpacing other digital assets over five years. However, Indian investors must account for a 30% flat tax plus a 4% cess on all gains. Because crypto losses cannot be offset against other profits in India, the actual take-home return for investors is often much lower than the gross performance figures seen on trading platforms.
Systematic Investment Plans (SIPs) in the cryptocurrency market have been a strategy for investors looking to smooth out the extreme price swings typical of digital assets. Recent data as of August 2026 highlights that TRON has been a standout performer for those using this disciplined investment approach. A monthly SIP of Rs 5,000 in TRON has generated returns of 104.58% over three years and 241.72% over five years. This performance compares favorably to other major assets, showing that a long-term approach has helped some investors capture growth despite the sector's inherent volatility.
However, the recent performance of digital assets is a reminder of the risks involved. While long-term charts show high growth, the one-year performance for several major cryptocurrencies, including Bitcoin and Ethereum, has been negative. For investors, this volatility means that an SIP strategy—which involves buying regardless of price—requires a high tolerance for risk and a long investment horizon to potentially overcome short-term market slumps.
For Indian investors, the biggest hurdle is not just market movement but the tax regime introduced under the Finance Act 2022. Every time an investor books a profit, it is subject to a flat 30% tax, plus an additional 4% cess. This tax applies regardless of the investor's total income slab or the holding period of the asset. Unlike equity mutual funds, where long-term capital gains often enjoy exemptions or lower tax rates, crypto gains are taxed at the highest possible level.
Another significant risk for investors is the rule regarding loss offsetting. In India, current regulations do not allow investors to set off losses from a poor-performing trade against the profits made on a successful one. This creates an asymmetric tax burden. If an investor makes a profit on TRON but loses money on another asset, they still owe tax on the full profit from TRON, with no tax relief provided for the loss elsewhere. This rule significantly increases the effective tax rate and makes portfolio management much more difficult.
Additionally, a 1% Tax Deducted at Source (TDS) is levied on the transaction value of every sale. While this TDS can be claimed as a tax credit when filing returns, it acts as a drag on liquidity, as a portion of the investor's capital is locked with the government until the tax return is processed. For retail investors, these costs combined—the 30% tax, the cess, and the impact of TDS—significantly erode the net value of their investments. Looking ahead, investors should account for these tax liabilities when calculating their expected returns and avoid relying solely on gross performance numbers provided by trading apps.