Gaining Profit From Crypto Pension Fund
In the retirement day, people are not productive. Pension fund will help living in old days. Current financial system, pension fund is a kind of financial product that can be cashed out after saving money for a fixed years. The saving schemes can be 10 - 25 years. That is a long time. Cryptocurrency is a digital asset that can be choices to be pension funds.
Choices of cryptocurrency assets
This discussion can be lengthy and requires a lot of discussion but I will try to give a brief overview. There are several categories of cryptocurrencies that you should know about. This is the result of my observation not as a financial expert.
High Volatility coins
cryptocurrency volatility is still high at the moment. Very fast price changes make investing in cryptocurrencies have high potential losses and profits. For traders high volatility is beneficial but, is it good long term saving? Therefore, selecting coins is very important. Almost all cryptocurrencies have high volatility.
Bitcoin's volatility is still high, bitcoin prices are still fluctuating rapidly with a very large gap. There are still many people who predict the price of bitcoin will reach 100 thousand dollars. We have to admit bitcoin is still the choice of digital assets to be stored in the long term.
ETH1.0 migration to ETH 2.0 triggered the increase in ether prices. Saving ethereum has huge potential returns in the next 5 to 10 years as many cryptocurrency projects are based on the ethereum network. Ethereum developers are very active and responsive to changes. Ethereum 2.0 is the answer to the high fees for transactions. If Ethereum transactions can be low, then this coin will lead as a coin with a reliable smart contract.
- Dash , Zcash, Monero, and other privacy coins
Even though Dash has prepared social pay, this coin is still considered a privacy coin. The increase in the value of this coin is not as big as bitcoin and ethereum, however, the increase is quite stable.
- Litecoin, dogecoin, bitcoin cash and other altcoins
The coins above are technically the same as bitcoin but have their respective advantages. Storing the above coins also has a potential advantage because they are established coins.
- Tokens based on cryptocurrency projects
Chainlink, uniswap, Binance coin and other native token projects. Those assets have strong developers so they will maintain the value of the coins.
There are many stable coins on the market such as Tether, DAI, Gemini, Usdc, Paxos and others. Keeping a coin stable in the long term will give you a sense of security but you won't get any added value. The stable coin has its price at 1 dollar. If you save $100,000 today ten years later you will have $100,000.
Cryptocurrencies with investment schemes
What does it mean? This coin model is a coin that provides rewards for saving it. In cryptocurrency it is called staking. In addition, Defi Protocol also offers this scheme. By locking the collateral asset, you will get interest according to the specified APR.
The description above is only an overview. You can analyze for yourself what coins are the best. Coins that will increase in price after 10 to 15 years. Cryptocurrency is different from physical assets. Crypto is a liquid asset that can be cashed at anytime. Can selling crypto at a time when the price looks high invalidate my plans for retirement? Of course, the decision to sell when the price seems to reach ATH is tempting. But keep in mind that if you sell your crypto assets before the planned time, there are two possibilities, you will profit or not be able to buy the same asset when the time is planned. Your crypto assets in the next 15 years will be more than the current ATH. Therefore, in my opinion, you have to keep buying back the number of assets that you planned when you want to take profit from the current ATH price.