Cryptocurrencies could be a good option to add to your retirement investing plan, suggested financial journalist and radio show host Ilyce Glink and Tom Fortino, founder and principal of Alpha Wealth Group.
In their weekly radio program called This Week in Wealth, aired over WGN Radio, Glink and Fortino discussed the opportunities and risks in including cryptocurrencies in one’s retirement portfolio.
“Is Bitcoin an appropriate hedge against inflation like gold with the market as volatile as it is now?” Fortino asked as he spelled out different retirement strategies and when to consider stocks as part of an investment portfolio.
“I’ve read an article that cryptocurrency and NFTs (non-fungible tokens) are the new multi-level marketing,” he continued, “But when you look at crypto investments, the question is, do you really understand what it is?”
From a personal standpoint, Fortino said he is more of a gold person since it has acted as a historical store of value and has a limited supply.
Fortino believes that Bitcoin and crypto cannot be a similar store of value, but that investors can still make money on them:
“I am not completely on board with Bitcoin. But as an investor, if you bought Bitcoin for $10,000 and it’s now over $40,000 and even reached up to $70,000, then I say it’s a good investment. Can you trade it? Sure. Can you make money out of it? Sure.”
However, he cautioned investors to carefully study and understand digital assets before adding them to their portfolios. He suggested buying a little cryptocurrency to “dip your toe in” and take it from there.
Or investors could also follow the old adage of investing in the person who manufactures the shovels and picks for the miners instead of buying or mining gold.
In this regard, Fortino suggested investing in cryptocurrency exchange stocks like Coinbase, allowing one to invest in the crypto space without actually buying any cryptocurrencies.
Glink echoed Fortino’s advice and cited Warren Buffet as an example, who initially stated he would not invest in technology stocks because he does not understand the industry.
However, Buffet is now one of the largest shareholders at Apple, with 5.5% stakes in the company that allowed his shares to rise dramatically.
“You can invest in something you don’t understand,” Glink stressed. She added, “You can learn about things, and you can dip your toe in.”
She advised investors to talk first to their advisors before making any investments and both agreed that the best time to buy is when the markets are volatile. They asserted that the Russian invasion of Ukraine presents the perfect conflict for investment opportunities.
In an earlier analysis of the Ukraine-Russia conflict, BeInCrypto predicted that Bitcoin could see state adoption driven by the need to participate in a new economic order.
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