At this point of your life, what have you done to prepare for your retirement? Did you even start saving for it?
Just this May 2017, I came to know Bitcoin and Cryptocurrency in general. That time, bitcoin was just about $2,000.
At this moment, bitcoin already costs around $5500.
Wow! That is 175% increase in just a span of five months!
I may be wrong considering its unpredictable behavior, but it seems like it is aiming to break a new all-time high record in few months due to its increasing popularity!
Amazing, isn't it?
Now let me ask you,
Is Cryptocurrency worthy to be considered as a retirement fund?
According to Collins Dictionary:
A retirement fund is a special fund which people pay money into so that, when they retire from their job, they will receive money regularly as a pension
Without a doubt, Cryptocurrency could be the future of money. Perhaps time will come that there will be no one in this world who does not contain these digital currencies on their wallet.
Still, cryptocurency is too risky to handle considering its high volatility. In fact, some cryptos seem to be so shaky with their values constantly declining.
Simply put, Cryptocurrency can be considered as a good retirement plan provided that you invested in coins you believe to have a great value potential.
Remember to consider these Financial Golden rules:
Golden Rule No. 1:
"Do not invest in something you do not know"
You just have to do an indepth research and try to look at coins with meaningful platforms which are proven to be stable historically.
Sure, understanding Cryptocurrency is mind-blowing but at the same time addicting. Take time to explore before diving into it!
Golden Rule No. 2:
"Think Longterm"
It would be best to think longterm. Remember! You are aiming to use this fund in your golden years, thus I am suggesting to just buy and hold.
Just be sure to have an Emergency Fund first in order to save yourself from unexpected financial crisis (i.e. job loss, disability, death of loved ones).
Golden Rule No. 3
"Do not put all of your eggs in one basket"
If you're thinking about betting all of your allocated retirement fund to Cryptocurrency, I tell you that's a bad idea. Probably the worst plan to do.
You don't want to see all of your eggs break just because you've put them all in one basket, do you? Unless your eggs are already hard boiled.
Just allocate some amount of it on crypto and put the others on some safer baskets (i.e. banks, stock market, piggy bank). After all, entering this kind of thing is already an investment. And you should only invest what you are willing to lose.
How about you? Do you consider Cryptocurrency as a good venue to entrust your retirement fund?
I would love to hear your thoughts on the comment section.
You might want to read my previously posted articles
