Is Cryptocurrency a Reliable Source of Income for Seniors?
Even though cryptocurrency is known for its high degree of volatility, even older adults are interested in purchasing it. This is what the responses showed from a poll that was carried out not too long ago with 1,037 different investors. Some of the more unexpected findings from the study were that 33 percent of people aged 65 and older have invested more than 25 percent of their wealth in cryptocurrencies and that 22 percent of those who are of retirement age are utilizing cryptocurrencies as part of their retirement lifestyle.
Additionally, greater than one-third of respondents reported making $5,000 or more from their cryptocurrency investments. But can individuals in their golden years count on crypto as a stable source of income? This article examines the two opposing viewpoints on the topic and includes commentary from professionals in the relevant field.
The Benefits of Using Cryptocurrency as an Income Source for Retirees
It would be an understatement to say that the cryptocurrency craze of the last decade has been sparked by the cryptocurrency’s spectacular introduction to the world of investments. When news spreads that a cryptocurrency like Shiba Inu increased in value by a mind-boggling 49 million percent in 2021, it’s no wonder that investors flocked to buy.
A survey conducted in March 2022 indicated that those aged 18 to 29 (55%) and individuals aged 30-49 (53%) in the United States believe cryptocurrency would become a dominating economic force. Those are staggering figures for a category of assets that was completely nonexistent before the year 2009.
A retirement plan with a good level of diversification may reap further advantages by allocating some of its assets to cryptocurrency, the price of which may or may not be correlated with that of other markets as the cryptocurrency industry develops. In a nutshell, while investing a tiny portion of one’s retirement savings in cryptocurrencies is highly risky, there is a possibility that doing so might give advantages in the form of increased diversification and possible returns.
Even if you have a high tolerance for risk and can afford to lose money on your cryptocurrency investments, you should still restrict the amount of money you invest in crypto.
The Bottom Line
Retired individuals often need cautious investments that can give them continuous income to get them through their non-working years. On the other hand, cryptocurrency is not an investment that is ideal for retired people. However, it’s important to remember that every rule has certain exceptions. If you already have enough money set up for your retirement, there is no reason why you shouldn’t try your hand at cryptocurrency trading in the hopes of making substantial profits. However, you must enter the market with an open mind and be aware of cryptocurrencies’ speculative nature before investing.
If you are in a position where you cannot afford to lose even a small portion of your funds for retirement, then the cryptocurrency market is not the place for you to be. If, on the other hand, you already have enough money to support yourself and are only looking to increase the returns on your investments, then it may be appropriate for you to put some of your money into carefully selected cryptocurrencies; however, this should not constitute a significant portion of your overall portfolio.
It is more vital than ever to speak with a financial adviser so that you can fully grasp the risks and benefits of cryptocurrency and determine whether or not they match your personal investing goals and risk tolerance.
Find out more about investing in cryptocurrencies as an alternative to conventional equities and bonds, or discover how you can use digital currency to meet your retirement objectives and discover more about how you can use digital currency. Contact us at 855-642-8800 now.