Cryptocurrencies are no longer new; Everyone knows the term by now. But the point is, have you ever thought about planning your retirement? Well, you heard that right. You can now use your retirement savings to invest in cryptocurrencies.
TThe crypto market has been booming since last year. Many investors have already made a considerable amount of money with cryptocurrencies and many others still believe in their ever increasing growth. If you are planning your retirement, you are on the right platform; Here we discuss various aspects of investing your retirement savings in digital assets. And if you haven’t thought about your retirement, now is the time to start.
Why should you consider investing your retirement savings in crypto?
Crypto traders believe that digital assets will soon become the main form of currency. There are potentially high profits from investing in crypto. We can hear many stories that say people got rich from Bitcoin or some other currency.
The rule is simple; If you can read the market trend correctly, there is a tremendous amount of money you can make from crypto and that could be a great source of income for your retirement.
When considering cryptos for your retirement savings, there are a few things to consider, including consistency and long-term growth. Consistency becomes critical because you need to be sure of the returns you will get. Although you cannot receive dividends on your cryptos, you can still earn interest by lending your cryptos and defi.
While investing, you need to carefully consider the trading platforms that have good reputation, security, less fees, good user experience, and KYC.
How is it easier to plan your retirement with cryptos?
Recently, 401 (k) provider ForUSAll Inc. and Coinbase teamed up to offer companies the opportunity to include crypto investments as part of retirement.
In particular, the 401 (k) plan is a defined contribution and tax-reduced retirement account that many companies offer their employers. The benefit is that the proceeds are not taxed until the person withdraws the money.
With the current collaboration between Coinbase and 401 (k) providers, employees of the participating companies can now transfer 5% of their funds to the Coinbase trading window, where they can use cryptocurrencies as an investment vehicle.
That being said, you can still buy and store some cryptos directly. For example, we know that Bitcoin issuance will slow down in the future, so it’s a great option to invest in your retirement.
Disclaimer of liability: Cryptocurrencies are notoriously volatile. They can make huge profits and sometimes lead to significant losses. It is therefore recommended that adequate risk management is in place before investing in digital assets.