Many people feel that investing in cryptocurrency is a way to increase their retirement savings, but it is not without risks. Cryptocurrency is a highly volatile asset class with prices that can fluctuate wildly in a short amount of time. This makes it a risky choice for those who are retired or nearing retirement and need to protect their savings. There are a few reasons why you should avoid investing in cryptocurrency in retirement, including the volatile nature of the asset, its lack of regulation, and the potential tax implications. Cryptocurrency is a digital asset designed to function as a medium of exchange. It is used as a way of transferring value between two parties, digitally, without the use of a central authority, such as a bank or government. Cryptocurrency operates outside of the traditional banking system and can be used to purchase goods and services, or be held as an investment. There are a large number of cryptocurrencies, with Bitcoin and Ethereum being the most well-known. Some people refer to cryptocurrency as “digital gold” because they see it as an alternative to holding physical gold. Like gold, cryptocurrency isn’t dependent on the health of any one economy and is seen as a store of value, with a finite and predictable supply. There are some important differences between cryptocurrency and gold, however. Unlike gold, crypto is not a physical asset, but rather exists as computer code. This makes it easy to store and transfer electronically.
Full opinion : Why You Should Avoid Investing In Cryptocurrency In Retirement.
