Bitcoin in your retirement wallet? This is what you should know

It is now allowed to add cryptocurrencies to your retirement portfolio. But should you? Bitcoin is the most well-known cryptocurrency, and Ethereum is in second place. The cryptocurrency, which only exists digitally, works by using an encrypted algorithm to send payments, making it more secure and without the need for a third party such as a bank or financial institution.

It is important to understand cryptocurrencies and the pros and cons of using them for investing, and especially for retirement planning. For the sake of simplicity, I will use Bitcoin as an example throughout this article. The question is whether a retirement portfolio is a good place to invest in cryptocurrencies.

To begin with, it is important to understand what a cryptocurrency is and how it is valued. Each Bitcoin has a designated value, which rises and falls similar to how the value of a dollar rises and falls. This value is based on the seller’s willingness to accept it for the goods sold or how much investors are willing to pay for a Bitcoin.

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