Funding Cryptocurrencies Like A Retirement Account
I'm in my mid-20s and for a while now I've been thinking about investing in my future. Unfortunately for me, I don't really have anyone to talk to about this for my parents have never invested in retirement accounts and I don't really have many friends that I can talk about this to. So I'm out doing my own research. At first I was looking to open up an IRA account and/or 401k. I've read many articles about how they work and how they can benefit me. I'm self-employed, so again I don't really have financial counsel to help me out with these decisions. I was leaning towards opening an IRA account so I'm checking in with my local credit union soon to see what my options are.
I've been involved in the crypto community for about 5 months now and even though it's not really long enough experience. I believe that investing in cryptocurrency now can really pay off in the long run. I've tested this by diversifying the 2 btc that I purchased way back in 2014 and I'm already up 1172%! Now, I did this by trading for a bit, but ultimately the crazy increase was because of coins that I was holding for the long run, the ones I believed were undervalued and saw great potential. Now when I started trading I didn't know shit about it. But thanks to Crypto Don's youtube channel and discord groups guidance I am able to do more calculated moves.
So what's my plan? Now that I'm at the point where I am, I'm thinking the wisest thing to do is to keep 70% of my portfolio on coins that I'll be holding for the long run and keep steadily funding them every week. and the remaining 30% I will use to trade with. I won't be funding my trading account. I'll be actively trading and it will be up to my trades to increase or decrease this portion of my portfolio. I'm planning on quick somewhat safe trades of 5% in and out. I've been pretty good so far with leaving emotions out of the table when it comes to trading out early on a pump or holding on a dip. For those who are curious on what digital currencies I'm holding for long, these are the ones I believe in, don't judge me on the last one: ETH, XMR, LTC, SC, STEEM, and XRP. I'm looking to use this strategy to supplement my goal of retiring early and have financial freedom. Of course I'm not only relying just on cryptocurrencies to help me achieve this I'm also working on creating and diversifying passive income streams. I'm super pumped to start this and excited to see where it will take me.
Thank you so much for reading. Please, I would love to know what your plans are with cryptocurrencies. What are you holding long? Why? Do you believe in them? Or are you simply an active trader for profit? Let's discuss.
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Given that crypto currencies are still in their infancy, and there are still some issues to work out with buying and selling, I opine that Bitcoin is definitely a long-term hold. Starting with jsnip4 last week in May 2017, Bitcoin et al appear to be functioning in place of precious metals as a store of value. But I cannot overemphasize Bitcoin's ability to be used over the Internet without banking fees, wire fees, and governmental intervention. Just realize that governments are already grabbing the low-hanging fruit; i.e., online wallets at centralized locations, such as Mt. Gox. So be diligent and diversify as well as back up your crypto coins.
With crypto currencies the tech-savvy person worth less than one million dollars has something normally only the multi-millionaires would have: private bank accounts. You don't have to fly to Switzerland, you just have to know what you are doing with either online or offline wallets and sub-accounts.