Are you planning your retirement and want to get off the hook with enough passive income? Like many others, you might have thought of crypto investments as a retirement plan. Since the arrival of Bitcoin over a decade ago, cryptocurrency has become one of the most talked about topics globally. Crypto coins like BTC and ETH have already made many crypto millionaires in a very short time too!
Crypto trading and investments can be a good plan for lucrative returns at the time of your retirement and after. But how is the crypto and DeFi sector allowing you to be financially independent even after your retirement? Let’s find out!
Cryptocurrency: The Talk Of The Hour
Bitcoin was launched in 2009, and it has been just 13 years since the cryptocurrency was first introduced to the world. Bitcoin had near to no value in the initial years, but it gradually got to the all-time high of as much as about $69,000 in 2021! Bitcoin was soon followed by numerous altcoins, and as a result the global crypto market has risen to a capitalization of over $932B as of October, 2022.
Despite crypto being just a teenager, these kinds of stats have made traders all over the world take note of crypto as an asset class. While crypto trading comes with a high volatility risk natural to the crypto market, the long-term returns have always been more than enough to make up for it. In fact, Bitcoin has gained so much popularity as a store of value that it is sometimes dubbed the ‘digital gold’. Considering all these factors, it’s really no wonder that people have been considering crypto trading a viable retirement plan.
Will Cryptocurrency Investments Prove To Be Safe?
Source: Time / Is crypto investment safe enough to consider crypto trading a good retirement plan?
In the last ten years, the cryptocurrency market has risen rapidly and given excellent returns to investors. Many people who invested in Bitcoin during the initial days have become millionaires already, and some are enjoying an early retirement from their jobs thanks to crypto. All this makes crypto investments a really good retirement plan, but the risks associated with crypto may still make you question: is crypto safe enough to ensure profits?
Just like any other class, crypto experiences volatility caused by many factors like global socio-political situations, market sentiments, and more. So in the short term, you might have to incur some losses in crypto trading. However, in the long term, most crypto projects have provided excellent returns so far, Bitcoin and Ethereum again being prime examples. Doing proper research before entering the crypto markets would help you be further stress-free about your crypto investments.
Things To Keep In Mind While Creating Retirement Portfolio
Source: CNBCTV18 / Crypto investments as a retirement plan
Every person requires a proper retirement strategy since it is the road to financial freedom when you decide to stop working. While cryptocurrency has already become a widely chosen retirement option, there are still certain things to keep in mind while creating your investment portfolio.
Firstly, choose the crypto assets only after carefully assessing their history and recent performances if you wish to pick crypto trading as a retirement plan. Other important things to do would be studying regular market news, keeping up with what’s new in the markets, and understanding key technical indicators. All these factors will ensure that you have profitable crypto investments as part of your retirement portfolio strategy.
For newcomers to the crypto space, a well-balanced retirement portfolio should contain about 10% in crypto investments. It would be best to pick out cryptocurrencies like Bitcoin and Ethereum with great long-term potential.
Crypto Investments: Good Retirement Plan
With crypto trading, DeFi is changing the way the world does finance. As Bitcoin brings a much more comfortable alternative to the fiat payment systems, the Ethereum blockchain gives app developers a well-built platform to create DeFi apps that will be able to support financial freedom for users. Similarly, many other crypto projects, such as Solana, Polygon, Cardano, and more are aimed at supporting the DeFi sector in general, and making the future of global finance brighter by returning control to the users of their funds.
Looking at the currently burgeoning crypto sector overall, it’s easy to notice that cryptocurrency has a very high potential as an investment option. With proper risk assessment and the choice of the right assets, you can have a great retirement portfolio for yourself with crypto trading.
Conclusion
In conclusion, the cryptocurrency market may be highly volatile, but it has a wide set of positives as well. As a matter of fact, every asset class has some associated risks, and it is up to the investors to choose how to allocate their funds and make profits out of those assets. If you wish to have a great retirement portfolio, the best thing to do would be to diversify it, and research well before picking a crypto project that aligns with your goal and strategies in the long term.