Holding Crypto For Pension Fund

By mummyrio | SIDECHAINNEWS | 19 Feb 2021

Is it possible to store cryptocurrency for the long term? How to secure these crypto assets and what coins will have added value in the next 10 to 15 years. Probably most of the people keep crypto as a means of making short profits in the medium time. For example buying bitcoin in 2019, then selling it now when the price reaches $ 50k.

Bitcoin, Investment, Business, Profitability, Chart

In the space of about 2 years, the profits have already doubled. How to store crypto for the next 10 to 15 years. This requires calculating the risk.

What are the risks of saving crypto asset for long term saving?

  1. Forget pasword or private key.
    This problem may be small but it is possible. If someone is in normal circumstances, forgetting to save the private key is unlikely. What if the person has a health problem in the form of memory loss or serious health problems. This problem can be minimized by printing the private key on paper and then storing it in a safe place. If the crypto assets that are stored are large, you can use the services of a trusted lawyer or institution to store the private key.
  2. Crypto assets lose their value or decrease drastically.
    Choosing crypto assets for pension funds must be careful so that there are no losses due to decreasing or losing value after decades.
  3. Died and haven't had the chance to inherit the private key
    If the crypto holder dies and the asset is locked, then the asset will become a dead asset. Talking with family members to decide on crypto saving pension funds is necessary. This will prevent from locked fund.

There may more problems when investing cryptocurrency for long term plan. However, there are some big benefits of saving crypto for retirement plan.

  1. Crypto assets are growing and their value is multiplying
    There are many stories of how people store bitcoins and don't realize that their assets are already worth billions of dollars.
  2. Crypto assets are liquid assets that can be used anytime without complicated bureaucracy.
    If in the middle of the road in storing crypto assets something unwanted happens, for example the owner needs large funds for treatment at the hospital, then crypto assets can be cashed out quickly.
  3. Storing crypto assets doesn't require a bank documents.
    To store crypto assets, you just need to know how to use a wallet and keep it safe.One doesn't need to know technically how crypto works.

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.

1. 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
    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.
  • Ethereum
    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.

2. Stable 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.

3. 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.


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