Don’t Fall for This Costly Crypto Myth

|April 9, 2024
Businessman hand holding gold coin cryptocurrency digital money putting into piggy bank on table in black background.

I had a meeting with one of my clients last week.

We can call her “Rebecca.”

Rebecca is a 59-year-old business owner. She wants to retire with $7 million in assets. She is about $4.5 million of the way there and was meeting with me to discuss using cryptocurrency to add diversification to her portfolio.

Her portfolio was almost exclusively stocks, bonds and cash. And while she was interested in buying cryptocurrencies to enhance her returns, she thought she might be “too old” to invest in this sector.

And what I told her next completely surprised her.

Diving Into the Digital Age

The notion that cryptocurrency is the domain of the young is a myth (and a costly one at that).

A recent study by the Global Blockchain Council revealed that 25% of individuals aged 50-59 are actively investing in cryptocurrencies, challenging the stereotype that this is a young person’s game.

Digital assets – especially “blue chip” cryptocurrencies like Bitcoin, Ethereum, and Solana – offer unique opportunities for growth and diversification that can benefit investors at any stage of life… especially those at or near retirement.

Cryptocurrencies, unlike traditional investment vehicles, operate in a market that’s innovative, decentralized and ripe with potential for significant returns.

Again, Rebecca is well on her way to her $7 million goal… but she’s looking to diversify and potentially speed up her journey. Cryptocurrencies are a compelling option for a few reasons.

An Ageless Appeal

Cryptocurrencies, particularly Bitcoin, have been shown to have a low correlation with traditional assets like stocks and bonds. This means they can serve as a hedge against inflation and market volatility, providing a layer of security to an investment portfolio.

We’re in an economic climate of sky-high government spending and deficits, with inflation rates at heights not seen in decades.

Using crypto as a hedge is even more valuable right now.

Plus, the potential for high returns, though accompanied by higher risk, cannot be ignored. Bitcoin and Ethereum has shown remarkable growth, with Bitcoin’s value increasing by over 9,000% in the last decade.

For retirees or those nearing retirement, allocating a small portion of their portfolio – even 1% to 2% – to such high-growth assets could significantly enhance their financial security and wealth.

Smart Risk

Of course, with high potential returns come high risks.

The volatility of the cryptocurrency market is well-documented. Prices are capable of dramatic swings in short periods. However, this is where the value of experience and a mature perspective comes into play.

Seasoned investors like Rebecca, who have navigated various market cycles, possess the patience and discipline essential for managing the ups and downs of cryptocurrency investing.

And the evolving landscape of cryptocurrency investment tools and platforms has made it easier for investors of all ages to safely and effectively participate in the crypto market.

From user-friendly trading apps like Coinbase to Bitcoin ETFs like the iShares Bitcoin ETF (IBIT), there are many ways to invest in digital assets while managing risk.

Start Small, Think Big

For those new to cryptocurrency, the key is to start small.

At the start of 2023, I had only 5% of my investible assets in crypto. But thanks to the crypto bull market, this has grown to 22%.

And that’s the goal of investing in any high-risk, high reward asset… to turn a little money into a lot of money.

That’s why allocating even a modest percentage of your portfolio to cryptocurrencies can provide exposure to the potential upsides… while limiting exposure to volatility.

As you become more comfortable with and knowledgeable about the market, you can make adjustments.

Education is also crucial.

The more you understand about how cryptocurrencies work, the better equipped you’ll be to make smart investment decisions.

That’s exactly why I’m going live this Thursday with a free crypto training event.

As I’ve written in these pages before… the entire sector is about to see a massive bull run thanks to a huge catalyst next week. I’m talking about the Bitcoin halving. That means now’s the perfect time to get in… to take advantage the mammoth gains that are coming in the next 12 to 18 months.

I’ll be joined by Manward’s Chief Investment Strategist, Shah Gilani, to teach attendees how to use my proven strategy for knowing which cryptocurrencies are about to go viral… and the most accurate signal you can use to sell.

I’ll even share my favorite crypto at the end of the training.

You can sign up to join us right here.

Investing in cryptocurrency is not about chasing the latest investment fad.

For Rebecca, it’s about strategically diversifying her portfolio to protect and grow her wealth in the years to come. It’s a testament to the fact that, when it comes to investing in your financial future, it’s never too late to adapt, learn, and take advantage of new opportunities.

Cryptocurrency is not just the future of money… it’s a present-day opportunity to build and protect wealth in a rapidly changing world.

By ignoring the myths about age and investing in digital assets, folks like Rebecca can move confidently toward their financial goals, ensuring their golden years are just that – golden.

Robert Ross
Robert Ross

Robert Ross’s unique style of clear and direct stock research helped him build a massive following in the investment research industry, starting his career at investment research company Mauldin Economics and quickly rising through the ranks to become one of the youngest chief analysts in the industry. Today, over a million investors turn to Ross every month for his take on investing, economics, and personal finance. He now shares his unique insights in Total Wealth and Manward Money Report.