Could you Use Cryptocurrencies to Fund Your Retirement?

March 27, 2018 by Adrian Thorpe

Saving For RetirementAnything that helps you plan for and pay for your retirement must be a good thing, and I have started to see an increasing number of initial coin offerings that are based around retirement plans that use cryptocurrencies as the way they help people fund their retirements.

Now what I would advise anyone who is looking for a solid retirement plan to help them pay for their outgoings and supply them with a steady income once their have retired from work, is to think long and hard about the options available to you.

But there may be some merit in putting together a portfolio of different cryptocurrency investments and holdings that you will hold for the long term, for if you do select the right ones the small initial outlay of buying them and then holding onto them over the long term may see some decent long-term growth being achieved by them.

You only have to look at the value of Bitcoin when it first launched and its current value, so see that if you did invest in the early days of that cryptocurrencies launch, and still had your holdings today, you could have funded your retirement quite easily by selling them on once their value did appreciate.

However, not all cryptocurrencies, coins and tokens are going to make long term profits, and that is why you do need to tread carefully and also think long and hard about just how much, if anything, you are prepared to set aside for buying into any of them with the aim of using them as a retirement fund.

Companies Offering Retirement Plans Based on Cryptocurrencies

There are a growing number of initial coin offerings and token generation events that are launching, have launched or are about to launch that are backed by a project that involves using cryptocurrencies as a way of helping you save for your retirement.

However as is always the case you may be better off choosing one or more cryptocurrencies that you like the look of, rather than trust a third party to do all of the investing for you, as no one I have come across and that involves individuals or groups of people have mastered the art of making sustained profits from any cryptocurrencies, and there will never be any that can.

The risks attached with investing in new start up coins and tokens will be considerably higher than when you choose an established cryptocurrency, however it is true to saw there will be risk associated with any of them and any of them could increase in value or drop in value at any time.

I would urge you to only set aside a relatively small amount of cash if you are seriously thinking of investing in cryptocurrencies to help fund your retirement, and then use your remaining funds to possibly invest in some of the more standard investment funds. But at the end of the day it is always going to be up to you just what you invest in.

Accessing Your Digital Assets

One final thing that you do need to be aware of these days is how you intend to store and also access your digital currencies and letting your relatives know how to access them, and as we are all going to die at some point in time in the future, you do need to ensure that the people you want to have your digital assets after your death can gain access to them.

Keeping your access codes and access information for your digital wallets is something that does need a lot of thought, but most savvy cryptocurrency users will always store their cryptocurrencies off line, and that is something you should do too.

However always keep them in a safe and secure place and make sure that you should derma up a way for your relativities or whoever will be able to find and access that information after your death so that they can inherit your cryptocurrency holdings, if not your digital assets will die with you.

In fact, I am fairly confident that if there isn’t already a company offering some form of after death service whereby the people you choose to have access to your cryptocurrencies and digital assets will be given access to how to access them, there will be one launching soon via an initial coin offering, so keep your eyes peeled for such a project if you want to checkout such ways of doing so!