CryptoCrypto Might Be the Future of Currencies, But Are They a Suitable...

Crypto Might Be the Future of Currencies, But Are They a Suitable Retirement Investment 

The financial world evolved continuously, and there have been fewer more significant changes in recent times than the introduction of cryptocurrencies. Indeed, its arrival has paved the way for thousands of people to make outrageous fortunes from crypto.

As we head towards a more cashless economy and online transactions become more common than those on the high street, cryptocurrencies will become more mainstream. However, does this make them a good retirement investment? Let’s take a look.

What is a Cryptocurrency?

The term ‘currency’ seems to confuse many people when they consider the concept of cryptocurrency. The hard cash in your pocket is so different from this new, invisible, and digital currency that it seems unfeasible that they provide the same function.

Of course, this comes down to us being used to only having hard currency for so long. However, a currency is anything that buyers and sellers agree to use as a means of exchange. Therefore, cryptocurrencies meet the criteria just as much as cash, gold, or other forms of currency used over the years.

Of course, cryptocurrencies are very different from cash. To start with, they are digital, a concept most people are familiar with through online transactions. But what about the crypto element?

Crypto, short for cryptography, is the practice of producing codes to provide security. Indeed, security is one of the most appealing aspects of cryptocurrencies.

Another benefit hailed by cryptocurrency fans is that it operates without a single central authority such as a bank or government. Instead, it uses a distributed network of databases, known as a ledger, to witness and authenticate transactions. The cryptocurrency transactions within this ledger are called the blockchain.

How the Blockchain Operates 

The blockchain is what enables transactions to take place. Everybody within the blockchain can witness every transaction, and this transparency makes it so secure.

Security is not crypto’s only benefit. It also provides speedy transactions, flexibility, and low transaction fees. As such, it has become popular with international travellers, those moving large sums of money across borders, and people who want to avoid government interference in their finances.

With such significant benefits, could cryptocurrencies be a good retirement investment? Let’s consider that question.

Is Crypto a Good Retirement Investment?

In its early days, it tended to be individuals who used cryptocurrencies such as Bitcoin. However, today, some of the largest companies in the world are adopting their use in everyday transactions. 

These companies include Visa, Amazon, and others. As we move closer to a cashless economy, more companies are likely to follow the example of these two giant corporations.

Of course, cryptocurrencies’ initial attraction evolved from the massive fortunes some people made from Bitcoin. However, there were just as many who lost everything they had invested. Indeed, investing in Bitcoin is a considerable risk, and you should consider whether it is worth taking.

What is Your Risk Acceptance?

Although you might be seduced by the prospect of huge returns from investing in cryptocurrencies, you should consider the risk. Cryptocurrencies are incredibly high-risk investments, which are not a good fit with the stability required for your retirement funds. Do you want to risk the comfort of your retirement years on the investment equivalent of rolling dice?

Traditional Retirement Investments 

The investment world is complex, and most people don’t fully understand how to invest their money. Generally, fund managers or financial advisors are the ones who ensure funds are invested appropriately. 

Of course, you have no guarantees, even when a professional is managing your investments. The economy is constantly changing, often quickly and without warning. 

Therefore, it is crucial to establish boundaries around your investments. You can do this through the level of risk you are willing to accept for your investments; high, medium, or low.

High-risk investments offer fabulous returns but a low level of security. Low-risk investments are more secure but come with lower returns. A mix of low, medium, and high-risk investments makes a good portfolio. You can benefit from the returns of your high-risk investments, while lower-risk ones provide security.

Traditional retirement investments include established public companies, precious metals, Forex, tech, and start-ups. So, what about cryptocurrency for retirement investment? 

Is Cryptocurrency a Suitable Retirement Investment?

In short, no. Cryptocurrencies are simply too risky to be considered an appropriate retirement investment. They are too volatile to fit with the rest of your plans, such as pensions. Also, cryptocurrencies have yet to be regulated, adding to their risk. Of course, all investments come with an element of risk. However, the chance of suffering substantial losses very quickly takes crypto to another level of risk. 


Many people have experienced incredible gains by investing in cryptocurrencies. However, just as many have suffered huge losses. Your retirement funds are too precious to risk losing them on what is effectively a gamble. 

A balanced portfolio of high, medium, and low-risk investments is more suitable for retirement. Even if you use an investment professional, you should maintain an active interest in your investments. Doing so will allow you to adapt as required and give you a better chance of enjoying a comfortable retirement. Avoid financial mistakes, make use of regulated financial advisors such as Portafina before you jump in to big decisions that could affect your future.

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