Diversifying a retirement portfolio is essential for investors at any age and stage of their investment journey. It’s typical for younger investors tend to take on more risk, while those closer to retirement age are more likely to pare back risks to ensure capital preservation.
Managing that risk includes evaluating retirement account investment structures. One traditional option is to hold 60% in stocks and 40% in bonds, but when bond rates are at historic lows, some investment managers may suggest that the ratio be closer to 70/30. This allocation leaves openings for alternative investments as one of the best ways to diversify for retirement.
New Ways to Diversify for Retirement
So, where should you start looking for that extra bang that will help you reach your goals by the time you are ready to retire?
Consider alternative investments beyond stocks and bonds that often include real estate, precious metals, and private equity. In addition to these alternative options are cryptocurrencies, which are also quickly gaining ground as investors seek more asset classes to diversify investments for retirement.
As an asset class, cryptocurrencies offer investors new transaction options. They also provide levels of transaction transparency that might be unachievable with cash and other current digital methods. These qualities make cryptocurrencies viable for mass adoption by governments, central banks, and institutions, as well as private investors.
In all, cryptocurrencies are a great way to diversify an IRA portfolio because the IRS views them as assets. To add these to your portfolio, it’s best to find an investing platform that supports crypto investments in your IRA.
How to Diversify for Retirement with Crypto
One of the easiest ways to perform basic research on cryptocurrencies is by reading through the whitepaper distributed at each coin’s initial offering. You should be able to find this information—and more—about each individual cryptocurrency on its project website. Read through each paper to see whether it has a viable use case and which problem(s) are solved by that specific cryptocurrency.
Also, consider how the trading volume has changed over time. You may want to look for cryptos that have historically increased interest and trading volume. To really dig into the details, you can search online forums to view conversations about what current investors think about the coin.
Another way to analyze crypto charts is by technical analysis. To do this, start by opening a chart in your trading platform and applying your favorite indicators to help you decide your best opportunity to start trading.
Where to Diversify Your Retirement with Crypto
Not all self-directed IRA platforms are designed to help you diversify your retirement portfolio with cryptocurrencies. If you’d like to add crypto to your IRA portfolio, be sure to find an investing platform, like Bitcoin IRA that can serve you and your needs as you diversify with alternative investments.
Bitcoin IRA* is an industry-leading Crypto IRA platform that offers a variety of cryptocurrency investment choices (60+ coins) to account holders. With a substantial base of over 100,000 users, our easy-to-use platform can be accessed both online and via our mobile app (available for iOS and Android). Bitcoin IRA is a solution designed for investors who are ready to take control of their retirement and build the best diversified portfolio to suit their needs Visit Bitcoin IRA to get started so you can diversify your investment portfolio with cryptocurrency today.
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