Crypto May be Booming But Is It A good Investment For Your Retirement?


Over recent years, the world of finance has changed considerably. You know you have many more options for saving, investing and spending your money. 

E-commerce is quickly replacing physical stores as the preferred means of shopping. This change is helping usher in an economy less focused on cash. 

One of the biggest beneficiaries of a preference for cash alternatives is cryptocurrency. Undoubtedly, this new phenomenon has entered the world with a fine. However, there is still much uncertainty about cryptocurrencies in many people’s minds. This article investigates whether cryptocurrency could be a good investment for your retirement. It’s critical to prepare ahead for your retirement and get professional assistance from a financial expert like Portafina.

What is a cryptocurrency?

One of the reasons people struggle to understand cryptocurrency is because it is referred to as a currency. The massive difference between the hard cash in your pocket and the virtual nature of Cryptocurrency makes the two challenging to associate.

Perhaps the definition of a currency would help. It is physically the means through which a buyer and seller agree to exchange payment for goods or services.

That explains the currency element of cryptocurrency; what about the crypto part? Crypto is short for cryptography, which encodes communications to make them secure. Cryptocurrency transactions are conducted through the blockchain, so let’s look at how that works.

How blockchain works.

Blockchain is what provides the security of cryptocurrency transactions because it enables everyone within the chain of transactions to witness the next ones.

Transactions tend to be low-cost, and they also benefit from being fast and flexible. These characteristics have helped grow the popularity of Bitcoin and other cryptocurrencies, as have their virtual nature and easy divisibility.

Cryptocurrency is excellent for global travelling, and it prevents the government from interfering with your large transactions. But what about your retirement? Would cryptocurrency be a suitable investment long-term?

How risky is cryptocurrency?

When cryptocurrency first entered the financial scene, it was niche. However, today, major companies such as Visa and Amazon are considering its use for everyday purchases and as an investment. As cash becomes less prevalent throughout society, cryptocurrency may become even more widespread. 

You’ll have heard of the enormous gains some people have made from Bitcoin. However, others have lost a considerable amount through investing in cryptocurrencies. You should be aware that your investment can go down and up, and the fluctuations in cryptocurrency values can be particularly volatile.

Your cryptocurrency investment will depend on your acceptance of risk.

Many people get persuaded into inappropriate investments by the allure of quick and considerable gains. Before considering cryptocurrencies as an investment option, you should consider the risk.

Cryptocurrency is a high-risk investment. When it comes to saving for your retirement, high risk is not something many people want to accept. Therefore, you should think carefully before risking your retirement funds on such a volatile investment.

Traditional retirement investment.

Most people do not fully understand the world of finance and investments. That’s why you’re pension funds are managed by financial advisors or pension fund managers. They ensure your money gets invested appropriately to have long-term growth to provide for your retirement.

Of course, there are no guarantees in life, and the economy can recede and grow. Therefore, making exact predictions about financial performance is impossible. However, you can limit the downs by setting appropriate risk parameters.

High, medium, and low-level risks.

You can categorise risk at three levels; high, medium, and low-level risks. Cryptocurrencies fall into the high-risk category. The opportunities to make huge gains through crypto are there, but the potential to lose is there too.

Other investments will fall into the medium and low-risk categories. If you are determined to include cryptocurrency or other high-risk investments in your long-term portfolio, you should also consider mixing in low and medium-risk investments.

Remember, investing for your retirement is a long-term process. During the decades your money is invested, the economy will likely see several peaks and troughs. Therefore, you should not risk your retirement funds for short-term gains.

Traditional investments include property, precious metals, commodities, FTSE 100 companies, technology funds, and others. The question is, should you have cryptocurrency in your retirement investment mix?

Should cryptocurrency form part of your retirement investment?

As we’ve already alluded to, we do not feel that cryptocurrency is suitable for retirement investing. One of the reasons is its volatility, and another is that it is unregulated – one of the aspects that makes it so appealing to people.

The potential losses and the speed at which they can occur make cryptocurrency much too volatile for a retirement investment. Yes, if you are a canny investor, you can make a fast profit. However, there are many more people who make a swift loss.


When you retire, your opportunities to recover from financial setbacks are limited. Therefore, you should be considered when it comes to your long-term investments. Cryptocurrency is an exciting prospect and may be suitable for a short-term punt. However, it would be unwise to risk your retirement on something so volatile, and that remains unregulated.