Bitcoin has turned the heads of investors from all over the world whether you like it or not.
It is one investment you won’t be able to ignore despite the fact of how crazy it could be, and you shouldn’t ignore it if you want to retire with money.
But first, let’s address the elephant in the room, Bitcoin has made people lose their money in an insane way and also made millionaires out of it.
Either way, bitcoin can be considered highly volatile and risky.
But here is a strategy to help you invest in bitcoin in the safest way possible.
The DCA strategy
The Dollar Cost Averaging is simply putting your investment money in short amounts at decided time periods instead of all at once.
You have $1500 money to invest so you can either:
a) Invest $1500 at once.
b) Invest $125 each month for 12 months
So normally most people and you could go with option “A” but that contains high risk as bitcoin is extremely unpredictable.
So instead we use option “B” where you invest a small amount of money over a fixed time period to avoid losing all money at once but still gaining profits.
The DCA strategy is not new, it has been used for a lot of investments like 401(K) the infamous retirement plan.
But the reason to use it on bitcoin is that it can give you better returns on your investment.
The DCA strategy is used by long-term investors of bitcoin.
Why bitcoin for retirement?
If you see the above picture you would understand how common cryptocurrency could get in the near future.
In one report from Statista “As of January 1, 2021, there were nearly 14,000 Bitcoin ATMs all over the world.”
So in not so distant future, you would be paying with digital currencies for your daily coffees and other payments.
Sure, when it comes to investing for retirement you have a lot of options: Roth IRA, 401(k), Fixed Deposits, Mutual funds, etc.
But betting on digital assets can give you a better edge and giant gains if done correctly.
Digital Finance or Defi is continuously getting better and soon will be global and would be the future of how our payments work and how we use our money.
As you can see in the above chart on the globalization of cryptocurrency throughout the world and will only increase over time.
More and more people are being aware of crypto trading and investments and soon it would become overcrowded.
And by simply ignoring you will miss out on a huge investment over time.
Not to mention the tax benefits it gives you from time to time.
As It is well predicted that digital assets will be the next big thing in the future after the arrivals of NFTs etc. So it is a great idea to adapt to digital investments from now in order to stay ahead.
How to invest for your retirement?
it is better to invest in bitcoin if you are looking for great retirement as it can have potentially big gains over time.
But before investing in bitcoin please take a step back and map out your plans, goals, and how much you will invest at a fixed time.
Once you have done that you can aim to invest 10% of your salary in buying bitcoin by using the DCA strategy.
This will help you get great results with minimum risks associated.
This would be beneficial for you as:
● You don’t have to constantly watch the market.
● Don’t have to constantly worry about how your investment would be at risk.
● You can invest regardless of the volatility of bitcoin.
● Set yourself up for higher gains by learning how bitcoin works over time.
Learning is important as a lot of investors lose their money by quickly investing in expectations of great profits.
So buy planning long term you will be able to understand few things about bitcoin which would be beneficial for you in your future investments of crypto assets.
But just to be sure during your investments please be careful about the platforms you choose, the ideal platform should have a good reputation, easy navigation so you can easily manage your portfolio and great reliability.
As you start to choose platforms a lot of them would offer you attractive discounts on their fees etc but be mindful and think long term.
Lastly before investing be careful and don’t get caught up in hype from Elon Musk tweets to random advices, have a great plan in place, and have other types of investments too, don’t go all-in on crypto if you don’t understand it.
Before purchasing understand your platforms first and plan ahead on set aside the amount of money you will put for your investments.
Have you ever heard of the DCA strategy? Let us know below.
Thank you for reading!