Boost your retirement by investing in cryptocurrencies
Around the world, human life expectancy has grown by leaps and bounds. Compared to the 1950s, it has shot up by 50% and compared to the 1980s, it has increased by 30%. Gone are the days when company sponsored pension plans were enough to get you through the golden age in a relaxed and carefree manner.
Today, with other expenses like housing, education, health care and more on the rise, many people are finding it increasingly difficult to save for retirement.
Unfortunately, the bitter truth is that people of all generations, from baby boomers to millennials, aren’t saving enough for retirement. Savings is one of the most underappreciated global epic crises.
“Retirement is complicated. It’s never too early or too late to start preparing for your retirement.”
Therefore, people look for alternative opportunities that give them higher returns in a shorter period of time. Traditionally, real estate, private equity and venture capital were sought. Now a new and more profitable lucrative investment has joined the picture: enter cryptocurrencies.
Cryptocurrency investments: for those who don’t want to put all their eggs in one basket
One of the biggest advantages of investing in cryptocurrency is that it decouples your portfolio from the reserve currencies. Let’s say, if you live in the UK, then you probably have shares of UK-based companies in your retirement portfolio, if you’re interested in stocks. What will happen to your portfolio if the British pound collapses? And given today’s volatile political landscape around the world, nothing is certain.
Therefore, cryptocurrency investments make more sense. With digital currency investments, you are effectively creating a basket of digital currencies, which acts as an effective hedge, or a sure bet, against reserve currency weakness.
The average investor should allocate only a small portion of their retirement assets to crypto, due to its volatility. But volatility can go both ways: think about the health care stocks of the 1950s and the technology stocks of the 1990s. The savvy early investors were the ones who came out on top.
Don’t get left behind or get lost. Include cryptocurrencies in your assets to start building a truly diversified portfolio.
Cracking the Wall: Build Your Confidence in Crypto
One of the biggest and most significant hurdles most first-time crypto investors face is that they cannot trust digital currencies. Many, especially people who are not tech-savvy or nearing retirement, don’t get what the promotion is about. Unfortunately, they do not realize or appreciate the myriad potentials of cryptocurrencies.
The reality is: cryptocurrencies are one of the most reliable assets, backed by the latest technology. The blockchain technology that powers digital currencies makes trading possible immediately and indelibly without the requirement for third-party verification. It is a peer-based system that is completely open and works on advanced cryptographic principles.
Retirement planning funds should work to demystify cryptocurrencies
To build trust and win people’s support, retirement planning funds must educate investors about the infinite potential of cryptocurrencies. For this, they need advanced analytics that help provide reliable risk analyses, risk/return metrics, and projections.
Additionally, investment firms can set up specialized cryptocurrency advisory services to help and guide new investors. In the next few years, one can expect a number of AI-based smart advisors to emerge on the scene; these will help calculate the right investments based on an individual’s time horizon, risk tolerance, and other factors.
Human advisors can work alongside these intelligent advisors and provide clients with personalized consultations and other suggestions when needed.
Need for more visibility and comprehensive control
Retirement investors looking to add cryptocurrency to their asset portfolio require more control and visibility as they experiment with this new asset. Look for platforms that allow you to combine all your assets in one place. An integrated solution that allows you to manage and balance all your assets, including traditional ones like bonds and stocks with new asset classes like cryptocurrency wallets.
Having such a broad platform that supports all your assets gives you holistic portfolio analysis, helping you make better, more informed decisions. Therefore, you reach the ultimate goal of saving for your goals faster.
Look for investment planning portals that also provide additional features, such as regular cryptocurrency contributions at scheduled or unscheduled intervals.
Advances in support technologies for investment in cryptocurrencies
Cryptocurrency investing will go mainstream only when supporting technology makes it possible for investors to trade coins seamlessly, even for new investors who don’t know the technical know-how. The exchange of one digital currency for another, or even for fiat currencies and other non-tokenized assets, must be possible. Where this is possible, it will remove the middleman from the equation, which will reduce additional costs and fees.
With the maturation of the technologies that support cryptocurrency trading and investing, the value of digital currencies will rise further, as the currency becomes more widespread with broader accessibility. This means that early adopters will make a big profit. As more and more retirement investment platforms integrate cryptocurrencies, the value of digital currencies will increase and offer significant returns to early adopters like you.
If you are wondering if it will take a few years for such retirement investment platforms to see the light of day, then you are wrong. Auctus is one such portal that is currently in its Alpha phase of release. It is the first retirement portfolio platform of its kind to include digital currencies. Auctus users can get investment advice from both human and AI-powered analytical tools.
For now, users can save for retirement using Bitcoins, Ethereum, and various other digital currencies. Additionally, users can make use of the automated rebalancing feature that allows them to adjust their portfolio automatically using a set of pre-set rules.
This holistic approach ensures that users can achieve their retirement goals sooner by making smart and sound investment decisions or choices.
Final thoughts – Cryptocurrencies should not be ignored in your retirement portfolio
Yes, it is true that cryptocurrencies are highly volatile. In fact, there is speculation on the internet suggesting that “cryptocurrencies are nothing more than a get-rich-quick scheme” and the bubble is likely to burst sometime in the near future.
Uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even if your investment horizons are short. On the other hand, the current fall in cryptocurrency prices in 2018 means that you have a rare opportunity to make a profit.
Increased trust, directly controllable and holistic investment management capabilities, and advances in supporting technologies ensure that digital currencies are an excellent investment option to include in your retirement portfolio.