Is Cryptocurrency a Good Retirement Investment?

Written by Banks Editorial Team
4 min. read
Written by Banks Editorial Team
4 min. read

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Cryptocurrency hit the market in 2009 with Bitcoin trading originally for a few cents. Today, it’s trading close to $40,000 and peaked at $65,000. To say that digital assets have revolutionized the way we trade is not a cliché, and many people have made an enormous amount of money by becoming part of this revolution. Digital assets are here to stay. And while governance around them is currently limited, this is fast changing. Governments and banks are realizing cryptocurrency’s potential. 

So, is cryptocurrency a good investment? The short answer is yes, and this article elaborates on why. In this article, we answer these questions:

  • Can you make money investing in cryptocurrency?
  • Are cryptocurrency investments insured?
  • Is investing in cryptocurrency safe?
  • Is cryptocurrency a good short-term investment
  • Is cryptocurrency a good long-term investment
  • What are the benefits of cryptocurrency as part of your retirement investments?
  • Where can you open a crypto IRA?

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Learn how you can invest in cryptocurrency as part of your retirement plan using the self-trading platform iTrustCapital.

Can You Make Money Investing in Cryptocurrency?

Bitcoin, which is perhaps the most well-known cryptocurrency, has appreciated about 310 times in value over the last decade. So, the answer to whether cryptocurrency is a good investment is a resounding yes. Real-life examples abound of people who have made millions by investing in cryptocurrencies within a short time. 

Many of these casual investors didn’t even originally intend to reap millions off their investments. And while some people believe that the value of cryptocurrencies has already peaked, many experts predict that most cryptocurrencies will be valued at more than $100,000 in the next five years, with some even getting close to $1 million by 2030. 

Are Cryptocurrency Investments Insured?

It’s only natural for people to feel slightly nervous about moving to a digital currency from the good old-fashioned paper or plastic ones. And with a currency that’s sitting inside a computer in the form of code, as most people would understand it, many people feel concerned about its safety. So, are cryptocurrencies a good and safe investment? The answer is that they’re getting safer by the day. Crypto exchanges are always working towards improving their security features, and it’s only a matter of time before crypto markets start getting insured as well. 

Currently, the SIPC and the FDIC don’t insure these currencies, mainly because the current fiscal policies and financial models don’t comprehensively provide guidelines on cryptocurrencies. 

Is Investing in Cryptocurrency Safe?

Like any other form of wealth, cryptocurrency needs to be protected. And while the crypto exchanges take the lead in securing the trading environment, it’s ultimately the owner’s responsibility to ensure that they take measures to protect their investment. A question then arises that, from a safety standpoint, is crypto a good investment? 

Fortunately, a lot is known about the dangers of digital currencies, which enables investors to be prepared. These investments can be made more secure by following these precautions:

  • using a cold wallet (which doesn’t connect to the internet and is thus safe from most cyberattacks)
  • always using a secure internet connection for trading
  • maintaining multiple wallets
  • keeping devices secured
  • changing your passwords regularly

Is Cryptocurrency a Good Short-Term Investment?

When cryptocurrencies are analyzed for their profitability, it’s usually their long-term benefits that stand out. However, it has been seen that cryptocurrency is a good investment even in the short term. 

While long-term investment carries few risks and returns on investment that are practically guaranteed, day trading comes with volatility that’s natural for all trading assets. Money is made and lost in this volatile environment, so you must be aware of this to be a short-term investor. And while it’s possible to make a quick buck through short-term investments in cryptocurrencies, investors should stick with long-term investments to make a significant gain on their investments.

Invest In Crypto for Retirement

2187 Reviews
Learn how you can invest in cryptocurrency as part of your retirement plan using the self-trading platform iTrustCapital.

Is Cryptocurrency a Good Long-Term Investment?

With the current prices of most cryptocurrencies at their all-time high, a question comes to mind, “Are cryptocurrencies still a good investment for the long term?” In a world where blockchain technology is the future, buying digital currencies for the long term is most definitely a good investment. The emergence of digital assets has been no different from the emergence of the internet. Being a difficult-to-grasp concept at that time, many people didn’t know what the internet was and remained unaware of its potential for a long time. Gradually, though, internet use became commonplace. 

Cryptocurrencies are no different, and it’s strongly recommended that new investors looking to make long-term investments in any form of digital assets educate themselves on what value cryptocurrencies add to trading. 

What Are the Benefits of Cryptocurrency as Part of Your Retirement Investments?

Traditionally, retirement investments were made in bonds, stocks, and real estate. However, more and more people are making long-term retirement investments in digital currencies. Therefore, soon-to-be-retirees may wonder if buying cryptocurrency is a good investment. Investing in cryptocurrency has three main benefits:

  1. Adding digital assets to the traditional mix of bonds and stocks is a great way to diversify a retirement investment portfolio.  
  2. Digital assets have a potential for much higher returns compared to bonds, stocks, and even real estate. With different cryptocurrencies increasing their value from four to six times in 2020, experts recommend investing small to moderate amounts in digital assets to mitigate risk while still harvesting the immense upward potential of cryptocurrencies. 
  3. According to tax law, investors get taxed each time they sell their digital assets for profit. However, because of tax complexities regarding digital assets, investors don’t get taxed if the money remains in their IRA, even after selling their digital assets for profit. 

IRA holders may vary significantly in terms of their circumstances. For example, some might have only just started their career, while others may be coming towards the end of their careers. So, is cryptocurrency a good investment to enrich retirement portfolios for all types of investors? The answer to that is yes. However, it pays to start investing early in your career. 

Where Can You Open a Crypto IRA?

To invest in cryptocurrency for retirement purposes, the first step is to open an IRA that allows trading alternative assets like crypto. While several IRA providers are available, they may not all offer the same benefits. 

iTrustCapital is a self-trading platform offering a Crypto IRA account. In addition to a wide range of digital currencies, investors can also invest in gold and other commodities through this platform. iTrustCapital is available 24/7/365 for trading and comes with a very low crypto trading fee of 1%. iTrustCapital Crypto IRA offers the same tax-free benefits as other individual retirement accounts, and you can choose between traditional SEP or Roth IRA accounts. iTrustCapital has made it easy to start investing with direct transfers enabled from 401(k)s, 403(b)s, TSPs, and 457s. 

As for safety features, the platform is protected by Fireblocks, which eliminate single points of failure. It’s also protected by Coinbase Custody, which is the world’s leading institutional digital currency storage provider. Coinbase also provides a $320 million insurance policy for your peace of mind. 

If you want to get started with investing in cryptocurrencies as part of your retirement strategy, visit the iTrustCapital website to open an account with them.

iTrustCapital

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