Can Buying Cryptocurrency Impact Your Retirement Planning?

By Achal Arya
January 28, 2020 Updated January 28, 2020
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In recent years, cryptocurrency has become a popular investment vehicle in the mainstream financial community. With a variety of cryptocurrencies in the market today, including Bitcoin, Dogecoin, Ethereum, and many more, these new products allow investors to achieve financial independence when it comes to their investments and other monetary transactions. 

Because of the difficulty to maximize 401(k) retirement contributions, cryptocurrencies have started to become a viable option for some retirement planners. But, given the volatile nature of cryptocurrencies, some are hesitant to incorporate these currencies into their retirement planning. 

Keep reading this article to know more about how buying cryptocurrency can impact your retirement planning. 


If you want to attain financial autonomy once you retire, it’s a well-settled rule that you shouldn’t limit your investments to the traditional assets. This means that you need to diversify your savings into different assets. This is where buying cryptocurrency becomes beneficial. 

Unlike in the traditional financial market, you’re not restricted to diversify your portfolio using cryptocurrencies. Since they’re considered a popular asset class with exciting growth potential, investing in them for your retirement plan can be a great idea. The more you leverage this new asset class, the more you can grow and protect your retirement investments against any risk caused by the changes in the market condition. 

Thus, if you’re looking to have a diversified retirement portfolio, it’s a great idea to buy your crypto assets now. To get the most out of your purchase, check a comprehensive comparison of buying options here

No Government Control Over Your Cryptocurrency Retirement Portfolio

Another significant impact of investing in cryptocurrency for your retirement portfolio is that all your funds aren’t under the control or influence of the central banks. When you buy digital assets, such as Dogecoin, to be part of your retirement savings, this part of your portfolio will be safe from any changes caused by government policies. 

Since no banks and governments can manipulate your funds, you can take full advantage of your retirement planning efforts in the long run. 

Protection Against Inflation

It’s well-known among retirement planners that their retirement funds can be invested in different asset classes, including stocks and mutual funds. Unfortunately, just like any form of investment, these assets aren’t immune to inflation and other economic crises. 

Given these circumstances, cryptocurrency can be an excellent retirement plan alternative for your retirement portfolios. Compared to the average retirement account, adding cryptocurrency into your retirement portfolio can offer you peace of mind knowing that your funds, when invested, aren’t affected by the effects of inflation.

This kind of hedge for your savings can provide you a better sense of financial freedom and independence at the time of your retirement. 

Long-Term Investment Opportunities

Because of cryptocurrency’s volatility, these digital assets can provide long-term investment opportunities, which allows investors to increase their investments over time. This can be one of the reasons why buying cryptocurrency can have a positive impact on retirement planning. 

Primarily, retirement planning is something that individuals do over a long period. It’s about setting aside a portion of your salary or tax-deferred benefits for many years in order to ensure your financial future. Just like other forms of funds, your retirement savings can also be invested in different markets, including the cryptocurrency market. 

Therefore, when you include a crypto retirement account in your diversified portfolio, you can ensure higher returns on investments over the years. Because of these assets’ growth potential in the coming years, you can undeniably enjoy long-term, profitable investment opportunities for your retirement savings. 

To achieve this, it’s best to equip yourself with the necessary information about making an investment in the crypto market


With the information presented above, no doubt that investing your retirement funds into cryptocurrency allows you to enjoy many benefits for retirement planning

As long as you fully understand the ins and outs of this opportunity, such as your risk tolerance and capacity to invest, you can achieve a financial milestone once you reach your retirement age. 


Achal is an entrepreneur and a product designer with a bachelors degree in Computer Science. He works in the Web3 domain and manages new developments at Coingape. Follow him on Twitter at @arya_achal or reach him at achal[at]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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