Bitcoin

Cryptocurrency for retirement planning? Buy these 2 coins now

Published

8 months ago

2 June, 2024

Cryptocurrency for retirement planning? Buy these 2 coins now

Just a few years ago, the idea of including cryptocurrency as part of a retirement investment strategy would have been unthinkable. But with Wall Street now embracing the idea of cryptocurrencies as a standalone asset class, the situation appears to be changing. This is especially true for younger investors, who seem much more willing to take on additional risk if it means the opportunity to retire early.

From my perspective, there are still only two cryptocurrencies that make sense when saving for retirement: Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). It is impossible to ignore the returns they have generated over the last decade. And new investment products are emerging that could make adding them to a traditional retirement portfolio much easier. Let’s take a closer look.

1.Bitcoin

The obvious crypto investment option is Bitcoin, which has an incredible track record of outperforming the broader market. From 2011 to 2021, for example, Bitcoin was the best-performing asset in the world, and it wasn’t even close. Bitcoin provided annualized returns of 230% per year. The next best asset class – technology stocks – returned just 20% per year. While this type of performance will be difficult to replicate in the future, Bitcoin generated returns of 150% last year and is up 60% in the first five months of 2024.

With Bitcoin currently trading near its all-time high of $73,750, the big question on many investors’ minds is how high it can go. Some have suggested that Bitcoin could reach $150,000 by the end of 2025. And Cathie Wood of Ark Invest has suggested that Bitcoin could rise to $1 million by 2030. If your retirement horizon is 10, 20 or even 30 years, the sky is the limit for how high Bitcoin can go.

Bitcoin symbol on Wall Street.

Image source: Getty Images.

There is one more factor that makes Bitcoin particularly attractive from a retirement planning perspective: the launch of new spot Bitcoin ETFs in January. Before this year, using crypto to save for retirement was practically a patchwork, DIY project. It was complicated and inefficient because there was no standardized crypto investment product that individual investors could use for retirement. Now it exists. And the idea now is that Bitcoin ETFs will start to appear more and more as options in retirement savings plans.

2. Ethereum

Just like Bitcoin, Ethereum has delivered extraordinary returns over the past decade. When Ethereum launched almost a decade ago, it was valued at just $0.30. Today, Ethereum is valued at almost $4,000. Of course, past performance is no guarantee of future returns, so the key is to focus on Ethereum’s future growth prospects.

The story continues

The good news here is that Ethereum has a compelling long-term investment thesis. It has a dominant role in almost every niche of the blockchain world, as well as in the most diverse blockchain ecosystem. Even better, Ethereum’s much-vaunted technical transformation (“The Merge”) in 2022 has laid the foundation for the next major stage of growth.

And just like Bitcoin, Ethereum will soon have its own ETFs. In late May, the SEC approved spot Ethereum ETFs. Investment firms still need to file some final documents with the SEC before the new ETFs can begin trading. But when they do, they could eventually become valuable tools for retirement planning.

Does crypto belong in your retirement portfolio?

Admittedly, there are several downsides to adding cryptocurrencies as part of your retirement portfolio. Most importantly, there is the issue of volatility. Yes, Bitcoin and Ethereum have provided incredible returns over the last decade. But they also had very bad years, in which they lost more than half their value. That’s the last thing you want in a retirement asset.

With this in mind, the most prudent advice is to allocate only a small amount of your retirement portfolio to crypto. You will gain the diversification benefits of crypto as a single asset class but minimize the risks of a potential crypto collapse. And to further minimize risk, you should probably focus on using the new spot ETFs for Bitcoin and Ethereum rather than trading crypto directly.

But here’s the thing: If you’re quickly approaching retirement age or are way behind on your retirement savings needs, adding just a small amount of crypto to your portfolio can make a tremendous difference. As long as you take a long-term perspective and are aware of the risks involved with crypto, Bitcoin and Ethereum can help you retire in style. And potentially even a few years earlier than planned.

Should you invest $1,000 in Bitcoin right now?

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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool has positions and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Cryptocurrency for retirement planning? Buy these 2 coins now was originally published by The Motley Fool

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Related Topics:Bitcoin ethereum retirement savings

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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