Bitcoin Investment Strategies for Retirement

Learn Bitcoin Investment Strategies For Retirement

Have you heard of how well Bitcoin has performed over the past year? Out of nowhere, it seems as if so many people have invested their money in cryptocurrency, thanks to its 400% growth in under a year, something that will catch the attention of pretty much anybody. This might cause you to think that investing in Bitcoin proves to be an excellent choice for building up for retirement. But before you get too excited, you should learn some useful Bitcoin investment strategies to avoid the high risks that come with cryptocurrency.

First, let’s talk a little about what Bitcoin is all about. Ultimately, Bitcoin is made to replace fiat currency, a feat that many would say unachievable. But over the past few years, Bitcoin has seen more real-world applications. Even banks in certain countries have started to integrate Bitcoin into their system. This has prompted the unbelievable rise in Bitcoin’s market value, recently hitting an all-time high of $5,000.

The technology behind Bitcoin is called blockchain, and experts say that this technology has huge potential and countless applications across different industries. A testament to this is the emergence of alternative coins. You can now find coins for online gambling, gaming, and paying bloggers. Over the following years, it shouldn’t be a surprise to find more digital currencies entering the market.

If you look at the charts of the top cryptocurrencies, the fluctuations in their values are so large. It’s common to find a value of a particular coin to drop by 50%. And it’s equally common to find the same coin increase in value by 100% the following day. This is the reason why so many folks have started to invest in cryptocurrency. The allure of doubling or even tripling your money in a day is just so compelling. But when planning for retirement, what you want is to go slow and steady.

The biggest fluctuations usually involve alternative coins, largely because they have yet to establish their worth and real-world use of their coins seem limited. On the other hand, coins that rank on top in terms of market cap are usually great investments for the long-term. Many of these coins have been around for several years, and they have increased in value steadily.

If you want to get started with Bitcoin, it’s a good idea to hold on to the top 10 coins right now. Spread your investment portfolio instead of going all out on a coin. Doing the latter comes with a very high risk, as you can see your investment drop in value incredibly in just a short amount of time.

You can also choose to set aside some money for day trading. After picking coins on which to put your money for the long-term, you can do some day trading by studying the market and investing in alternative coins which you think will return a profit quickly. Again, you must understand the risks involved here. Make sure that the bulk of your cryptocurrency portfolio consists of the best-performing coins. Of course, you should still consider other traditional investment channels such as stocks and bonds as they are generally safer long-term investments considering the volatile nature of cryptocurrency.

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