Since time immoral, thousands of books and millions of articles have been published to guide different classes of employees to smart retirement investing. As much as retirement investing might be the last idea hitting one’s mind in the early employment years, starting as early as possible can significantly play an advantage.
The biggest question to every retirement investors is certainly, “where should I put my retirement money to accrue interest over time?” As cryptocurrencies quickly become mainstream means of transaction and digital assets, Ethereum, the second largest cryptocurrency by market capitalization, could be just one of your options. Outlined are various tips on how to invest in the virtual crypto for your retirement:
ICOs are a hub of opportunities, but beware of scammers
The most distinguishing factor about Ethereum’s blockchain is its ability to facilitate smart contracts. Consequently, many startups are leveraging Ethereum’s technology to lobby for resources through Initial Coin offerings (ICOs). ICOs can be likened to the traditional Initial Public Offerings (IPOs), with the major differences lying in the tight rules and regulations associated with the latter. Additionally, ICOs are privileged to a wider scope of investors compared to IPOs.
Whereas some excellent ICOs such as IOTA come with heavily rewarding returns, there are other ICOs that are out to exploit investors of their hard-earned cash. You, therefore, have to keenly scrutinize an ICO’s white paper, the team behind it, among other details before coming up with a final decision of staking your retirement money.
Buy and sell Ethereum using trading bots
Trading Ethereum for other cryptocurrencies can be a profitable venture if the odds work in your favor. This, however, requires a lot of your time in observing the market trends before executing trades. The good news is that you could take advantage of trading bots such as investing with the Ethereum code to automatically recognize market trends and execute trades in your favor 24/7. As an investor, you should be able to distinguish between well and poorly engineered trading bots to maximize on profits and abate losses.
Utilize Ethereum Investment Trusts
In case you are well conversant with traditional investment options whose principles you would like to deploy on Ethereum as a retirement investment, you can take advantage of Ethereum Investment Trusts that give investors the access to Ethereum through traditional methods of investments hence eliminating the hustles of trading and safely storing Ethereum.
Only invest what you can afford to lose
As you invest in Ethereum for your retirement, it is important that you wisely execute your asset allocation. Cryptocurrencies are really a volatile kind of investment as they constantly and sharply fluctuate in value. They can beat their all-time high at one particular hour, and fall to their lowest exchange rates in several hours or days. As an investor, you should, therefore, be prudent enough to stake a portion of your retirement money that you can afford to lose.
Diversity is key to minimizing risks
Finally, rather than secure all your Ethereum investments under one umbrella, you could spread them on different portfolios such as ICOs, trading bots, and Ethereum Investment Trusts. This minimizes the risk of losing on your investments in case of failure on one platform while at the same time increasing your chances of making reaping big.