Many of us want a poverty-free old age, as well as to travel, to stop worrying about money and just to enjoy life. That being said, the truth is that it’s not always possible to live carefree solely on an allowance. Most modern retirees can barely make ends meet. But what about us, those who are just getting there? Rising inflation erodes all savings, and it is not always clear which stocks to invest in for the long term. That’s when crypto may be of help. The value of individual coins has already shown that it can climb several times in a year. So now to meet a worry-free old age, you can invest in crypto and wait for financial prosperity? The following article will tell you whether digital assets are suitable for retirement savings.
Benefits of crypto
Cryptocurrency is a unique digital asset that has many strengths over traditional financial instruments such as deposits, stocks, precious metals, etc.
Furthermore, crypto is the most profitable asset type lately. Take bitcoin, for example, which has skyrocketed from zero to $60,000 since 2009. No other asset can offer investors such strong earnings growth.
A large number of crypto-enthusiasts believe that BTC in 10-20 years time may be worth more than a million dollars. Therefore, if you buy bitcoins today, you will be millionaires when you retire. Given the correctness of the enthusiasts’ predictions, though.
On top of everything else, many cryptos, particularly bitcoin, have limited issuance. It means that the coin will not yield to inflation.
Maximum number of mined bitcoins will be at 21 million, with some of them already lost forever. Consequently, the supply of BTC will gradually shrink. In case the demand for the first cryptocurrency will continue to be high, its price will only rise in the long term.
Protective assets. Cryptocurrencies loosely correlate with traditional markets: for instance, when stocks drop, bitcoin can surge, and vice versa. Nor does it depend on the price of oil. Therefore, the first-ever crypto is often perceived as a serene harbor or an asset where you can wait out the storms in traditional markets. This is exactly why big companies buy bitcoin: Tesla, MicroStrategy, Square and others.
Decentralization. Decentralized coins have no control center, individual, or company: the coins belong to whoever has the private key to the blockchain wallet where they are stored. Hence, third parties such as governments or banks cannot confiscate them. As long as you own a private key, you possess your coins. First thing – do not lose the key, otherwise you will lose access to the coins, too.
Long-term investment risks
Since investing in cryptocurrency for the long term, some risks may arise, which we will discuss below:
- Investments for a comfortable old age are long-term investments for 20-40 years. Obviously, you can be more or less sure that nothing serious will happen with crypto in the next few years, but you never know what will happen decades from now.
- Cryptocurrencies are convenient because they allow you to make cross-border payments anywhere in the world for large sums with minimal commission fees. But when withdrawing in fiat currencies through exchanges or trading platforms you will have to pay an additional fee in the form of several percent of the total amount – it all depends on how you withdraw the cryptocurrencies. In 20 or 30 years, however, the withdrawal of cryptos in fiat money will no longer be necessary. It is highly possible that in our daily lives we will all be using digital assets.
- Despite the fact that the crypto market is more than a decade old, many countries still can not decide how to regulate this industry. That is why it is difficult to predict somehow what may happen to digital assets in dozens of years.
- So far, not a single generation has saved for old age in crypto. There are the unexpectedly rich early investors – but that’s a different story. Those who decide to save for old age in digital assets will be the first to face lots of as yet unexplored challenges.
Conclusion
The idea of investing in crypto, so as not to miss out on anything in retirement, is tantalizing. Keep in mind, however, that you should not trade your retirement savings. You just buy cryptocurrencies and don’t do anything with them – keep them in a safe place until you’re going to sell them. This strategy is called HODL («Hold On for Dear Life»). It is an ideal choice for the amateur investor and one of the best strategies over the long run.
But in order to start earning cryptocurrency today, we suggest using RevenueBOT, a platform for creating trading bots. You can use RevenueBOT to create a stable passive income. The platform allows you to create trading bots on the largest and top cryptocurrency exchanges such as: Binance, Bittrex, FTX, OKX and others. The creation of the bot is completely free, the commission fee will be charged by the platform only after the first profit has been made. It should be noted right away that the bot does not have access to the user’s funds on the exchange, and that it trades using API-keys, which means that the exchange account will remain inaccessible. RevenueBot has over 40,000 customers, who make money thanks to our trading bots.
The following is, however, not an exhaustive list of the advantages offered by our platform:
- The commission fee is charged only after the user has made a profit;
- The bot settings open up a variety of ways to make a profit;
- RevenueBot has a marketplace where customers can buy a ready-made bot so they don’t have to create their own, or they can also sell their own bot if its configuration has proven to be effective. Furthermore, users can acquire in the marketplace the services of a mentor (an experienced user of the platform), who is ready to answer questions from beginners. Over time, you can become a mentor yourself and earn an extra income from it.
- Regular updates of the platform’s features, which optimize the trading process.
- The RevenueBot referral program allows you to earn money without having to trade. Refer new clients to the platform and you will get up to 30% of the platform’s commission on all profitable transactions conducted by the new user attracted by you every month (but no more than 15 USD).
As you can see, the platform has quite a lot of advantages to offer, all you have to do is start trading. There is no need to list them all when you can check everything yourself through RevenueBot’s official website. Have a good trade!