All over the world, the average life expectancy of people has increased not by days, but by hours. Compared to the 1950s, it has grown by 50%, and compared to the 1980s – by 30%. Long gone are the days when company-sponsored retirement plans alone were enough to enjoy a relaxed and worry-free golden age.
Today, with other expenses such as housing, education, health care and more rising, some people find it increasingly difficult to save for retirement.
Unfortunately, the hard truth is that people of all generations, from baby boomers to millennials, are not saving enough for retirement. The economy is one of the world’s most underrated epic crises.
“Retirement is difficult. It’s never too early or too late to start preparing for retirement.”
Therefore, people try to find alternative opportunities that provide them with higher income in a shorter period. Traditionally, real estate, private and venture capital are in demand. Now a new and more complementary way to make money and make profitable investments has joined the picture – enter cryptocurrencies.
Investing in cryptocurrency is for those who don’t want to put all their eggs in one basket
One of the biggest benefits of investing in cryptocurrency is that it separates your portfolio from reserve currencies. Let’s say if you live in the UK, your retirement portfolio is bound to have shares in UK companies if you’re into equity. What will happen to your portfolio if the British pound crashes? And given today’s volatile political scenario around the world, nothing is certain.
Therefore, investing in cryptocurrency makes the most sense. With a digital currency investment, you are effectively creating a basket of digital coins that acts as an effective hedge or safe bet against weakness in the reserve currency.
The average investor should allocate only a small portion of their retirement assets to crypto due to its volatility. But volatility can short both sides — think back to health care stocks in the 1950s and tech stocks in the 1990s. Smart early investors were the ones who made it big.
Don’t fall behind and don’t lose. Incorporate crypto into your assets to start building a truly diversified portfolio.
Cracking the Wall – Build your confidence in cryptocurrencies
One of the biggest and biggest hurdles most new crypto investors face is that they can’t trust digital currencies. Many people, especially people who are not tech savvy or close to retirement, do not understand what promotion is. Unfortunately, they fail to realize and appreciate the countless possibilities of cryptocurrency.
The reality is that cryptocurrencies are one of the most reliable assets backed by the latest technology. Blockchain technology, which works with digital currencies, allows trading immediately and forever without the need for third-party verification. It is a peer-to-peer system that is completely open and works on advanced cryptography principles.
Retirement planning funds should work to demystify cryptocurrencies
To build trust and gain people’s support, pension funds must educate investors about the endless possibilities of cryptocurrencies. To do this, they need advanced analytics to help provide robust risk analysis, risk/return metrics and forecasts.
In addition, investment companies can create specialized cryptocurrency advisory services to help and guide new investors. In the coming years, you can expect to see several intelligent AI-based advisors appear on the scene – helping to calculate the right investments based on a person’s time horizon, risk tolerance and other factors.
Human advisors can work alongside these smart advisors and provide customers with personalized advice and other suggestions as needed.
The need for greater visibility and comprehensive control
Retirement investors looking to add cryptocurrencies to their asset portfolio need more control and visibility as they experiment with this new asset. Look for platforms that allow you to consolidate all your assets in one place. An integrated solution that allows you to manage and balance all your assets, including traditional ones like bonds and stocks with new asset classes like cryptocurrency wallets.
Having such a broad platform that supports all of your assets gives you a holistic view of your portfolio, helping you make better, more informed decisions. This way, you will reach the ultimate goal of saving for your goals faster.
Look for investment planning portals that also provide additional features such as recurring cryptocurrency deposits at scheduled or unscheduled intervals.
Advances in technology support for cryptocurrency investing
Cryptocurrency investing will only become mainstream when the enabling technology allows investors to trade coins seamlessly, even for new investors with no know-how. It should be possible to exchange one digital coin for another, or even for fiat currencies and other non-tokenized assets. If this becomes possible, it will eliminate middlemen from the equation, thereby reducing costs and additional fees.
As the technology that supports cryptocurrency investment and trading matures, the value of digital currencies will further increase as the currency becomes mainstream with wider availability. This means that early adopters will make huge profits. As more and more retirement investment platforms integrate cryptocurrency, the value of digital currencies will inevitably increase, offering significant benefits to early adopters like you.
If you’re wondering if it will take a few years for these kinds of retirement investment platforms to see the light of day, you’d be wrong. Auctus is one such portal that is currently in an alpha launch stage. It is the first of its kind retirement portfolio platform to include digital currencies. Auctus users can receive investment advice from both humans and AI-powered analytical tools.
At the moment, users can save for retirement using Bitcoin, Ethereum and several other digital currencies. In addition, users can use the automated rebalancing feature, which allows you to automatically adjust your portfolio using a set of preset rules.
This holistic approach ensures that users can reach their retirement goals sooner by making smart and sound investment choices or decisions.
Final Thoughts – You can’t ignore cryptocurrencies in your retirement portfolio
Yes, it is true that cryptocurrencies are very volatile. In fact, there is speculation online that “cryptocurrency is nothing more than a get-rich-quick scheme” and the bubble is likely to burst soon.
The uncertainty doesn’t mean cryptocurrencies shouldn’t be part of your retirement portfolio, even if you have short investment horizons. On the other hand, the current fall in cryptocurrency prices in 2018 means that you have a rare opportunity to profit.
Greater trust, holistic and directly controlled investment management capabilities, and advances in supporting technologies ensure that digital currencies are an excellent investment choice to include in your retirement portfolio.