Consider adding Bitcoin to your retirement portfolio
Since the counter-party risk was too high, sophisticated investors were unable to participate. A number of crypto hedge funds are now forming, as well as large, well-known banks establishing blockchain departments. These are all strong signs that something important is going on here. When you consider the apparent upward price rise that Bitcoin has seen over the last ten years, it’s time to ask yourself… Is it a good idea to have Bitcoin in my retirement portfolio?
Learn about Bitcoin
If you’re new to the room, it’s a good idea to familiarize yourself with the advantages and disadvantages of blockchain technology. I’m not asking you to fully comprehend the workings of the SHA-256 hashing algorithm, but understanding the value of decentralized technology is a good place to start. Warren Buffett once said, “Never invest in a company you don’t understand.”
We understand the importance people place in blockchain technology as a crypto exchange that has dealt with a wide range of coins and tokens. Here’s why we think everyone should at least think about including bitcoin in their retirement portfolio.
Bitcoin in your retirement portfolio
There are a few things to think about before adding Bitcoin to your retirement portfolio. The first is to figure out what percentage of your portfolio you can safely invest in Bitcoin. When making this decision, a variety of considerations come into play. They will be covered in greater depth further down. The second step is to figure out how you’ll buy Bitcoin and keep it for a long time. To obtain Bitcoin, you have a nearly limitless number of options. Others are more secure and trustworthy than others. Continue reading to learn which approach is best.
What proportion of Bitcoin do you have in your retirement portfolio?
No one is advising you to sell all of your stocks and bonds and invest in the new altcoin, but as with anything, start small and see if it’s right for you. Why should this be any different? You test the water before entering any swimming pool, so why should this be any different?
Most respected fund managers will advise placing a large stake in safe assets like bonds, another large stake in stocks and other moderately risky assets, and finally a safe sum in very risky assets in a traditional retirement portfolio to maximize average returns. Why not invest in anything with near-unlimited upside potential if you’re going to take a chance on a risky asset? Bitcoin has the power to turn everything we think we know about money on its head. Why can’t our currency be deflationary instead of inherently inflationary? Why not let clearly established mathematical mechanisms (that can’t lie) rule instead of central bankers regulating the supply and therefore price of our savings?