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Since its development in 2009 through Bitcoin, the cryptocurrency market has grown extremely popular over the years – evolving from hot investments for crypto enthusiasts to a mode of payment that millions of firms have now adopted. Since Bitcoin was introduced, several other altcoins have also emerged; this action led to more and more people being curious and joining the crypto trend.
In recent years, there have been cases of people becoming quite wealthy (some even reaching millionaire status) due to trading crypto. This result just proves that the crypto market is indeed profitable, so earning or increasing funds is possible.
However, not all things are served on a silver platter, not even cryptocurrency. This field also comes with a lot of risks; there are even cryptocurrency scams and hacks, which have put an end to many trading careers.
The cryptocurrency market is known to be highly volatile, which means the values of the digital coins experience a surge or downfall like a rollercoaster. Millions of individuals, firms, crypto enthusiasts, beginners, or even retirees have engaged in crypto trading, and some even made it their life investment; but with its fluctuating nature, crypto can be risky for people who don’t have savings or spare cash.
With the obvious and proven results from the cryptos risks, one question surfaces: should retirees invest in cryptocurrency? Or should they opt for a safer option?
If you’ve made up your mind and are convinced that you should enter the crypto-verse, but still have questions and doubts, don’t worry! We’ve compiled below important tips that retirees must remember before investing to ensure they’re making the right move.
1. Choose a Trustworthy Platform
Whether you are a beginner or a retiree, know that the first step to starting a crypto career that can last for a long time is choosing a reliable trading platform.
It may sound simple, but the truth is it can be challenging knowing that there is a long list of cryptocurrency platforms in the market, such as Coinbase, Kraken, Immediate Edge, and more. These crypto exchanges and brokers provide their investors access to thousands of cryptocurrencies available for transactions such as buying, selling, and trading.
To ensure that you make the right decision, you should list down features that your ideal platform must have – something that aligns with your goals, needs, and knowledge. Most importantly, it’s good to choose a platform that not only goes well with your goal requirements but ensures to provide needed help when needed. To narrow down your list, you should look for a platform that offers high-level security, 24/7 customer support, user-friendly mobile applications, and a good number of available cryptocurrencies.
2. Proceed with Caution
Everyone who wishes to enter the world of cryptocurrency must be cautious and must avoid investing without thinking. Experts recommend starting slowly and should only invest a small amount of money. You can gradually increase it as your career progresses. One effective way to proceed with the crypto world with caution is by doing extensive research.
Keep in mind that it’s important to know the different coins on platform exchanges. Knowing how to read a price chart to determine the effects of a coin’s price history is a plus. Bitcoin has indeed been around for a very long time, given that it’s the first cryptocurrency, but it doesn’t mean that it’s the right choice for every investor. You may find that a different coin matches your needs and skills better — but without research, you wouldn’t know.
Despite its flaws and risks, cryptocurrency has proven to be a profitable investment for many people at the right age. The important thing is that investors must never take for granted the risks that come with it, especially as a retirement option. To lessen the chance of losing funds or falling victims to scammers, retirees must be fully aware of everything about the crypto market before jumping in.
3. Know How to Limit the Risk
Compared to other investors who have a stable job and are still far from retiring, retirees are often advised to establish a conservative investment portfolio; this is because most retirees often cash out their investments and use them to pay for their day-to-day costs as houses and paying off loans. Up to this day, most retirees, like senior citizens, struggle to live by relying on social security alone, which leads to withdrawing some of their investments.
The crypto market is known for its highly volatile nature, which makes the field more fluctuating compared to stocks. Many experts have concluded that crypto may not seem like a suitable investment for retirees, but with the market’s benefits, it’s no surprise that the conclusions made by experts are not followed, and retirees do not avoid engaging in this market.
There are cases where some retirees may have access to more than one income source, so for financially-healthy retirees, investing a small amount of money is not a bad idea. Some retirees also have additional money from investment property, social security, pension, or an allotted retirement plan and a separate brokerage account.
Despite being established a few years ago, the cryptocurrency field is still developing continuously, and it’s difficult to predict whether your invested money will end up as a long-term investment or not; which makes retirees who have no spare cash play it safe and just stay away from digital coins for now. The outcome can be determined by various factors, and firms worldwide accepting crypto as a form of payment method is already a huge step to reaching a world that accepts this decentralised system.
With all the risks and benefits that come with crypto, it’s perfectly normal to feel lost and confused at the start. Fortunately, there are various resources online that give investors ideas of things to know before adding crypto to their retirement plan. Generally, one of the most important tips that every investor must know is to never invest more than they can afford to lose.
Final Thoughts
Cryptocurrency is now one of the latest investing trends in the market, and this leaves most people wondering if incorporating digital assets into their retirement plans is a good move.
If you’re considering investing in crypto for your retirement, that’s not harmful. However, you must be aware of the risks associated with these assets and how the market’s volatile nature can impact your portfolio in the long run.
The items listed above are three of the most important tips that retirees must keep in mind when planning to invest in cryptocurrency.
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