Why you should include Crypto in your retirement plan
It is no longer news that Cryptocurrency is the future of finance which means one doesn't have to think twice about investing in cryptocurrencies like Bitcoin, Ethereum, Steem, TRX, BNB, and other good cryptocurrency that has potential growths.
Now as human beings we are there are some points in our lives where we can no longer work due to old age and other factors, but eating retirement benefits may not be enough to settle bills. Some factors determine how people set up their retirement benefits which can be based on their monthly income, number of children, and so on.
A $1 worth of Cryptocurrency that is purchased today can be worth $5 and above 2 years from now, which is one of the key reasons why you should consider adding cryptocurrency to your retirement plan if you want to enjoy yourself during retirement.
It is said that consistency is the key to whatever a person is doing which is the key for you to achieve your crypto retirement portfolio. This Dollar Cost average (DCA) strategy is the best way you can build a retirement crypto portfolio.
DCA is simply a market strategy used by investors to accommodate a coin that is too expensive to buy. It is a strategy that you can use an buy BTC or any high cryptocurrency gradually. For instance, let's assume that you are earning $2000 as a monthly salary you can decide to invest $400 monthly in BTC for 5 years.
DCA is the best way you can use and own the number of cryptos that you wish to have even if you don't have the available money at hand.
We all know how important cryptocurrency is to the world which means adding crypto to your retirement plans you will benefit a lot. However, keeping too much talk aside, below are the advantages.
- Diversification
- High returns
- Inflation hedge
- Diversification
With crypto investment, you can easily diversify your investment into different digital assets, because it is easy to buy, sell, and even swap (convert) one crypto for another crypto.
- High Return
Cryptocurrency investment is one type of investment that has the potential of giving 20x of your capital in a single day, unlikely when you invest yours in physical assets. The potential of crypto to give you a high return on your investment is more certain than when you just stock your money in your back account.
- Inflation hedge
When it comes to hedging in economics cryptocurrencies like Bitcoin, Ethereum, Steem, and others against inflation. Bitcoin which was created in 2009 with a trading price of just a cent, is worth more than $25k today.
Fiat currency is open to facing an inflation crisis, just like in the case of Nigeria's naira against the US. Dollar that is now $1 equals 1,110 Naira. With this, those who invested in cryptos will not feel the impact of inflation, compared to those who don't invest in crypto.
Whatever has advantages also has its disadvantages which makes things balance. To this gage disadvantages here are;
Price volatility
Regulatory issue
No consumer protection
Price Volatility
The price of cryptocurrency is highly volatile and fluctuates up and down which means that the profit you made this minute, can still be lost in the next minutes.
- Regulatory issue
Till today, cryptocurrency is facing the issue of getting regulated by the government which sometimes affects the industry. With this whatever you do in the industry, it's at your own risk because no law protects your investment.
- No consumer protection
In the crypto industry, if you should lose your investment to fraudster you can't recover it back. Everything is done virtually without your physical presence. Whatever you do it's at your detriment.
Conclusion:
This post is not investment advice but an educational post that aims to educate you on the reason why you should consider adding crypto to your retirement plans and not a recommendation for you to buy any crypto yet.
The crypto market is highly volatile and whatever you do should be for your good which means before investing you should meet your financial adviser to guide you through.
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To be honest, I personally would put a maximum of 10% of my retirement assets in crypto because it is very risky and very volatile.
but I'm not discrediting crypto performance, guys.
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It is very important to have retirement plans but anyone using cryptocurrency as his retirement plan should be prepared for anything.
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