For those working towards retirement, investment options that should appreciate quickly and a diverse portfolio that distributes risk are ideal. With all of the recent hype around cryptocurrencies, some investors believe that these accounts have the potential to help satisfy both luxuries. While Bitcoin has shown significant gains in the last year, many believe that cryptocurrencies are far too volatile to be a good investment, especially as part of your retirement accounts.
On top of their volatility, cryptocurrencies are traded on unregulated online exchanges that have consistently experienced hacks and exposed investors to money-losing schemes. It’s no surprise that regulators have yet to approve low-cost digital currency funds and Google has banned cryptocurrency advertising. As these accounts continue to experience highs and lows, it’s best for investors to avoid cryptocurrency investments altogether, unless they fully understand their potential downside.
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