Can Cryptocurrencies Be a Smarter Investment Plan for Retirement

Planning for retirement means investing in various instruments today to achieve a certain income goal for the future that will make you financially independent. To maintain your standard of living and meet your retirement needs, it is important to choose the right investment vehicle. You must consider a wise investment plan to earn lucrative money in your old age.

Cryptocurrencies are subject to market risks and are influenced by internal and external factors. They have a similar model to stock trading. However, unlike stocks, cryptocurrency regulatory reforms are grim, which is one of the downsides of the market. The vulnerability of cryptocurrencies is higher than that of stocks and also lacks clarity.

According to CoinMarketCap, there are 20,715 cryptocurrencies available for trading with 520 crypto exchanges. The market capitalization of cryptocurrencies is around $1.04 trillion at present. Bitcoin, Ethereum, Tether, USD Coin, BNB, Binance USD, XRP, Cardano, Solana, and DogeCoin are the top 10 cryptocurrencies.

Should you choose crypto-currencies to plan your retirement?

Ashwani Kumar, Founder and CEO of HelperWorld, said, “Despite skepticism towards cryptocurrencies as an asset class, there has been massive adoption globally, legalizing the concept and many other countries are looking to follow suit – by investing in cryptocurrencies.

According to Kumar, wealth management firms are moving to add cryptos to their retirement pools, however, before considering cryptos as a viable option for one’s golden years, there are some crucial factors to consider – l age, disposable income and overall risk appetite.

Meanwhile, Abhijit Shukla, CEO and Director of Tarality, said: “Considered risky for traditional investors, Crypto has become the alternative asset class of the 21st century.”

Tarality CEO thinks investing in cryptocurrencies can be a small part of retirement planning.

He said that while investing in crypto can be a small part of his retirement planning and it’s a volatile market, he shouldn’t hold much of his financial strategy, this asset class has the potential to be a diversification tool because price often does not. ‘t move in line with the rest of the market. It can also be used as an inflation hedge.

Additionally, Shukla said, “Specifically known to fluctuate in price, the value of each bitcoin generally tends to rise. If the investor wishes to invest in crypto as part of a buy-and-hold strategy in his retirement plan, it can be a smart option.”

Also, on investing in cryptos for retirement, Kumar said, “by opting for cryptocurrencies that have long-term potential for a well-balanced retirement portfolio, it should be around 10% of the total investment. Additionally, keeping your crypto in an ‘offline’ or hardware wallet guarantees access to your private keys, making them impervious to hacks and malware attacks.”

The Crypto Market Today:

As of Wednesday, according to CoinMarketCap, the global crypto market cap is currently at $1.04 trillion, up 0.57% from the last day. However, the total crypto market volume in the last 24 hours is $66.54 billion, which is a decline of 5.96%. Total DeFi volume is currently $4.88 billion, or 7.33% of the total 24-hour crypto market volume. The volume of all stablecoins is now $60.57 billion, or 91.03% of the total 24-hour volume of the crypto market.

Bitcoin is trading at around $21,700, up 1.2% in the past 24 hours. While Ethereum has jumped almost 3% over the 24 hours and is trading around $1,685. However, Bitcoin and Ethereum have fallen over 7% and 8% over the past seven trading sessions.

Market leader Bitcoin has a capitalization of nearly $413 billion, while Ethereum’s market capitalization is around $204 billion. Bitcoin holds dominance with a weighting of 39.75% of the total market.

Other top 10 cryptocurrencies are – Tether with a market cap of over $67.55 billion, USD Coin at $52.33 billion, BNB at $48.06 billion, Binance USD at 19.04 billion, with XRP at $17.11 billion, Cardano at $15.67 billion, Solana at $12.54 billion, and Dogecoin having a cap of around $9.12 billion.

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