retirement Planning means that you invest today in various instruments to achieve a fixed income goal for the future which will make you financially independent. To maintain your lifestyle and meet your needs during retirement, it is important to choose the right investment mechanism. You have to consider a wise investment plan to get attractive wealth in your old age.
cryptocurrency are subject to market-related risks and are affected by internal and external factors. They have a similar pattern for trading in stocks. However, unlike stocks, regulatory reforms in cryptocurrencies are bleak which is one of the drawbacks of the market. The vulnerability in cryptocurrencies is greater than in stocks, and it also lacks clarity.
According to CoinMarketCap, there are 20,715 cryptocurrencies available to trade with 520 crypto exchanges. The market cap of cryptocurrencies is currently around $1.04 trillion. Bitcoin, Ethereum, Tether, USD Coin, BNB, Binance USD, XRP, Cardano, Solana and Dogecoin are the top 10 cryptocurrencies.
Should You Choose Cryptocurrencies for Retirement Planning?
Ashwini Kumar, Founder and CEO of Helperworld, said, “Despite skepticism about cryptocurrencies as an asset class, it has seen widespread adoption globally, legitimizing the concept and many other countries that are following suit. Want to – Investing in cryptocurrencies.
According to Kumar, wealth management companies are switching to add crypto for their retirement, however, before considering crypto as a viable option for one’s golden years there are some important factors to consider – age, One’s disposable income and overall risk appetite.
Meanwhile, Abhijit Shukla, CEO and Director, Tarality said, “Crypto has become the alternative asset class of the 21st century, considered risky for mainstream investors.”
The Tarality CEO believes that investing in cryptocurrencies could be a small part of retirement planning.
That said, while investing in crypto can be a small part of one’s retirement planning and, being a volatile market, it shouldn’t form a major part of one’s financial strategy, this asset class has the potential to be a diversification tool. This is because prices often do not move according to the rest of the market. It can also be used as a hedge against inflation.
Furthermore, Shukla said, “particularly known to fluctuate in price, the value of each bitcoin typically moves upward. If you want to invest in crypto, it can be a smart choice.
Furthermore, on investing in crypto for retirement, Kumar said, “For a well-balanced retirement portfolio choosing cryptocurrencies with long-term potential, it should be around 10% of the total investment. Furthermore, one’s Keeping crypto ‘offline’ or a hardware wallet ensures access to its private keys, making them vulnerable to hacks and malware attacks.”
crypto market today
On Wednesday, according to CoinMarketCap, the global crypto market cap is currently at $1.04 trillion which is up 0.57% from the previous day. However, the total volume of the crypto market in the last 24 hours is $66.54 billion, a decrease of 5.96%. The total volume of DeFi currently stands at $4.88 billion, which is 7.33% of the total 24-hour volume of the crypto market. The volume of all stablecoins is now $60.57 billion, which is 91.03% of the total 24-hour volume of the crypto market.
Bitcoin is trading at around $21,700, up 1.2% over the past 24 hours. While Ethereum is up about 3% in 24 hours and is trading around $1,685. However, Bitcoin and Ethereum are down between 7% and more than 8% in the past seven trading sessions.
The market leader, Bitcoin, has a capitalization of around $413 billion, while Ethereum has a market cap of around $204 billion. Bitcoin dominates the overall market with a weightage of 39.75%.
Other cryptocurrencies in the top 10 are – Tether with a market cap of over $67.55 billion, USD Coin at $52.33 billion, BNB at $48.06 billion, Binance USD at $19.04 billion, XRP at $17.11 billion, Cardano at $15.67 billion, Solana is $12.54 billion, and Dogecoin has a cap of about $9.12 billion.
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