Buying into Cryptocurrencies to Fund Your Retirement
You only have to look at the long-term increase in values of some of the longer established cryptocurrencies to release, several of them do have the potential to allow you to set aside money each week or month over several years in the hope that they will help fund your retirement.
Anyone who did have the faith to buy into Bitcoin when that first cryptocurrency came along and went live would be holding some huge profits, and that does therefore pose the question could you use Bitcoin or any other cryptocurrencies as a way of helping to fund your retirement.
There are of course differing opinions as to whether Bitcoin or for that matter any other cryptocurrency is going to be here for the long term, some people think it is a fad, and over the long term like any other fad cryptocurrencies will fall out for fashion and if they do their respective values will drop significantly as the years tick by.
However, there are many other people who have no doubt in their mind that all cryptocurrencies, especially the major ones, such as Litecoin, Bitcoin, Ripple and Ethereum will always be around, as the years tick by their values will continue to grow to some values never seen before.
But when it does come to you looking for ways to save money for your retirement you should always be aware of the risk when using cryptocurrencies, as not all of them will be around in years to come or will not be as popular as they are now.
Pros and Cons of Cryptocurrency Long Term Investing
As someone who may have been bitten by the cryptocurrency investing bug, it can be hard to look at those investments as long term ones, for if you are ever lucky enough to buy into any of them when the price is low, and then experience the delight of seeing them massively increase in value, you will also be tempted to sell them on and cash out a profit.
However, when it does come to retirement planning, it is the long term you should be looking at, and as such you should be prepared to see cryptocurrencies rise and fall in value and be prepared to take the rough with the smooth.
I have come across several companies that have been launching initial coin offerings on which the project the ICO is funding as a form of retirement fund for cryptocurrency users, however I would advise you to steer clear of them unless you are prepared to take the associated risks of buying into any of them.
You will be much better off simply buying your own chosen established cryptocurrencies and holding onto them yourself over the long term rather than trust a third-party company to use your funds as an investment tool, and if you have never bought cryptocurrencies before it is very easy to do and nothing to be afraid of doing.
Which Cryptocurrencies Have Long Term Appeal
If you have made up your mind that you would like to set aside any amount of cash regularly to buy into cryptocurrencies, then the hardest decision that you are going to be faced with is just which ones to invest in.
Lots of people are prepared to buy the exceptionally low-cost coins and tokens that are being offered by token generation events and initial in offerings, and there are of course pros and cons of doing so, but the risks when buying such coins and tokens may be much higher than when you simply buy into one of the top 10 or top 20 cryptocurrencies.
It is always going to be your decision as to just which cryptocurrencies you should buy into, and you may consider the best course of action will be to buy into just Bitcoin but do also consider buying into a handful of the most popular ones too, as spreading the risk around may be a much better thing to do.
As you will no doubt be aware that all cryptocurrencies can rise and fall in value at any time, but it is certainly begin to look like over the long term as opposed to the short term there is always going to be value and profits to be made by buying into the major ones and looking at them as a long term investment rather than very short term ones, so keep that in mind.