Search

Crypto in 401(k): Digital Investments for Retirement in 2024

You will now be able to invest in cryptocurrency in your 401(k). But should you jump in on the crypto-mania too? It depends on how much you can tolerate volatility in your investment portfolio.
crypto in retirement
Crypto in 401(k): Digital Investments for Retirement in 2024
In this article

It’s hard to look at the news these days without cryptocurrency rubbing you in the face. Talking about cryptocurrencies and social media is booming. Celebrities, billionaires, and digital-asset enthusiasts are all dabbling in the crypto craze.

It doesn’t stop there, many investors are putting money into cryptocurrency and soon you might have the option to invest in cryptocurrency for your retirement. Yes, you read that right! You will now be able to invest in cryptocurrency in your 401(k).

But should you jump in on the crypto-mania too? Well, that depends on how much you can tolerate volatility in your investment portfolio. 

Is Crypto Going Mainstream With a 401(K) Offering?

Some 401(k) savers will soon be plunging a portion of their nest eggs into cryptocurrency. And this is only the beginning of a crypto investment as a retirement strategy. But it is too early to tell whether this will be an industry-wide turning point or a temporary on-trial phenomenon.

ForUsAll Inc., a 401(k) provider, announced earlier this month that a deal has been made with the institutional arm of Coinbase Global Inc., a leading cryptocurrency exchange. This will allow workers to invest up to 5% of their 401(k) contributions in Bitcoin, ether, and others.

Are Cryptos Right for You?

Looking at it from a long-term point of view, the value of digital currencies solely depends on how widely they are accepted as a form of payment.

Presently, you can’t exactly walk into a supermarket and pay for groceries with crypto. Cryptocurrencies are volatile and unpredictable and because it’s hard to predict what the future holds for cryptocurrencies, it can be a risky investment for your retirement.

To be honest, there’s a good chance it will be worth absolutely nothing in the next 10, 20 or 30 years. That is why people who buy cryptocurrency do so on a short-term basis because its future is shaky.

But since your 401(k) is centered on building a long-term wealth strategy, don’t pile all of your nest egg into volatile cryptocurrencies, as they pose a big risk to your retirement. Going by the latest news, Dogecoin has seen booms and swoons in a short time interval.

If you’re a first-time investor, ensure to proceed with caution. These investments are speculative for amateur investors and can cause some extreme financial swings. 

Also Know About : Read this before you start making investments

What Are the Risks?

Well, we’re all aware that there’s no such thing as a risk-free investment. Cryptocurrency and risk-free are just miles apart, in fact, it is a lot riskier than putting money into stocks.

Cryptocurrencies like Bitcoin are only a little more than a decade old and we don’t know how much staying power it or other digital currencies have.

But if you’re still contemplating on whether to board the crypto train or not, here’s something to consider: follow the 5% threshold, it might be a good start. Ease your way in, it is a better bet than going all in—and risking losing all your money in the process.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎
Shirlene Grace Isaac

Shirlene Grace Isaac

Shirlene puts words on the Internet because she loves to do so and also for the money! She is a singer, songwriter, occasional poet, artist and muser — all in the body of a 20 something. She's a taleteller of sorts often looking for opportunities to narrate stories untold.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

How long will your retirement savings last
How Long Will Your Retirement Savings Last
Explore the complexities of retirement planning and learn solutions to ensure a safe financial future. Investigate the 4% rule, dynamic withdrawals, and the ground-breaking Income Floor Strategy as you navigate the intricacies of changing markets with bespoke solutions.
How millennials can plan for their aging parents
Saving is always a critical factor for millennials, more so when family and aging parents are involved. Don't know where to start planning your finances for them? We're here to help you get started. 
Ready to Retire? 3 Telltale Signs It’s Your Time
The most common scenario is people should first be financially ready before they have made up their minds emotionally. Retired people do not get a paycheck but they live on their savings and other financial resources.
Saving for Retirement- How to Save |Top Tips
You can make an informed choice with a handful of mutual funds for retirement using a smart, diversified investment portfolio. You can recreate your 401(k) easily with "lazy portfolios" while robo-advisors offer low-cost solutions.
Features
Essentials

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Get up to 20% on everyday spends

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: