Over the past years, cryptocurrency has grown popular – from a mode of payment option to becoming a hot investment for different types of people. Since the birth of the first cryptocurrency, bitcoin, several people have been paying attention and started engaging in the world of cryptocurrency. Read on if you want to know more about investing in cryptocurrency trading platforms such as BitiQ.
While it’s true that earning or increasing profit in cryptocurrency is possible, there’s also a lot of risks involved in this field. Throughout time, there have been cases of cryptocurrency scams and hacks.
Since its development, several people have engaged in cryptocurrency trading careers and made it their life investment. With the risks that come with cryptocurrency, one question arises: Should retirees invest in cryptocurrency, or should they play it safer?
Here are some tips on how retirees should invest in cryptocurrency:
Limit the risk
Retired people are often advised to have a more conservative investment portfolio compared to people who are still working and still have many years left from retirement. This is because retirees often cash out their investments and use the funds to pay for their living costs, such as houses and loans. A majority of retirees, often senior citizens, struggle to live relying on Social Security alone, so some invest their savings in stocks and bonds and just make withdrawals when needed.
Making withdrawals mean having to cash out investments when they’re down. Retirees are often advised to stay away from stocks since their values tend to fluctuate more compared to bonds, which is a more stable investment option.
On the other hand, cryptocurrency is popularly known for its highly volatile nature, making it even more fluctuating than stocks. Due to this, it may not seem like a suitable investment for retirees. However, with the benefits that cryptocurrency offers, it doesn’t mean that retirees should avoid it completely.
Although some retirees have access to various income sources, it wouldn’t be a bad idea to invest a small amount of money in cryptocurrency for financially-healthy retirees. Some retirees have additional money from a pension, Social Security, investment property, a dedicated retirement plan and a separate brokerage account.
Cryptocurrency is relatively new, and it’s difficult to know whether your funds will end up as a long-term investment or not. That depends on whether cryptocurrency becomes a widely accepted form of payment and if it is demanded. So retirees who don’t have extra cash to spare may be better off playing it safe and staying away from digital coins.
The best rule that every crypto investor must follow is to never invest money that you can’t afford to lose.
For retirees who have decided to invest and buy cryptocurrency, it’s important to proceed and enter the crypto world with caution. It’s recommended to start slowly and only invest a limited amount of money at first. The most important thing that not just retirees but everyone who plans to invest in cryptocurrency should do is to do some research.
Researching the different coins, the different platform exchanges, and the coin’s price history – it’s important to make decisions that align with your cryptocurrency goals. While Bitcoin may rank as the number 1 when it comes to market cap, and it has been around the longest, it doesn’t mean that it’s the right choice for every investor.
Nonetheless, cryptocurrency can be a profitable investment for all suitable ages. However, investors must not forget that there’s a risk to investing in cryptocurrency, especially as a retirement option. Retirees, especially senior citizens, should be aware of the risks before jumping in.
Choose A Reliable Exchange
The first step to starting a crypto trading career is to choose a cryptocurrency exchange. However, that task is not that easy as there are some best cryptocurrency exchanges to choose from that can give investors access to thousands of cryptocurrencies that are available for buying, selling, and storing. To find the perfect exchange for you, you need to follow some personal steps to ensure you’re making the right choice – this includes doing extensive research.
Published by Glusea