Over the years, you’ve likely heard many stories about Bitcoin millionaires. And this new style of cryptocurrency definitely has you intrigued.
Why?
Not only is crypto one of the hottest investments on the market, it’s also very profitable for early adopters.
But is it too late?
Many people are concerned that Bitcoin is overbought at this point. And some highly respected investors will say that this is the case.
On the other hand…
Other bright minds believe that Bitcoin can reach amazing heights. In fact, I heard some people say that it could go to anywhere from $250,000-$400,000 per coin.
Imagine the possibilities…
It’s important to know that the best cryptocurrency investment strategy involves creating a diversified portfolio.
Sure, you definitely want exposure to the big dog Bitcoin in your portfolio because it’s the best of breed.
But that doesn’t mean you should avoid other forms of cryptocurrency.
Did you know that Ethereum has more than doubled in price this year?
In fact, earlier this year Ethereum broke through the critical $300 level.
Guess what?
It hasn’t looked back! In fact, at the time of this writing Ethereum is currently trading for $623 per digital coin.
And it’s well on its way to its most recent high of $675. I wouldn’t be shocked if it breaks through within a few days or weeks.
Establishing the Best Cryptocurrency Investing Strategy for the Long-Term
By now, you see the value of investing in cryptocurrency. But you might not know the best strategy to truly capitalize on this opportunity.
That’s why I’m here to help!
This doesn’t need to be mind-numbingly difficult. In effect, you only need to focus on a few basic principles that you repeat over and over. Commit to these basic principles indefinitely and you’ll have a happy and healthy retirement nest egg.
The principles I suggest following include:
- Long-Term Investing in a Cryptocurrency IRA
- Develop a Diversified Cryptocurrency IRA Portfolio
- Maximize Your Yearly Cryptocurrency IRA Contributions
- Learn to Handle the Ups and Downs of the Market
- Commit to the Plan and Stay the Course for the Long-Term
With that said, you must begin your long-term cryptocurrency investing strategy by learning about the top crypto brokers. I’ve personally reviewed three of the best companies in the industry. You can learn more about them if you read this review.
Long-Term Investing in a Cryptocurrency IRA
First off, the best investing strategy is always holding on for the long-term. Some financial experts disagree, but this is true beyond the shadow of a doubt.
Why?
You can make a mistake, lose 40% or more of your portfolio, and still recover given enough time.
Short-term investing requires tracking the markets, buying at the precise time, and also selling at the best possible moment.
Do you have the time to follow every tick of your cryptocurrency investment? Most people lead busy lives and barely have enough time to make dinner for their family. They’ll never find the time to accurately and perfectly predict the next uptrend or downtrend of their cryptocurrency investment.
Why put yourself through the extra stress for no reason?
If you’re 40 years old, open a cryptocurrency IRA and begin investing in multiple cryptocurrencies.
By the time you turn 65, every one of your investments will have matured and earned a healthy return. This is the law of averages in action and it’s definitely going to work in your favor.
Develop a Diversified Cryptocurrency IRA Portfolio
You’ve undoubtedly heard the saying, “Don’t put all your eggs in one basket.”
Have you ever wondered why the saying exists?
In the past, one or likely thousands of people invested all their money into a single investment. And as you can imagine, that investment went belly up and they lost everything.
The same holds true with cryptocurrency investments.
Some cryptocurrencies are going to do tremendously well like Bitcoin and Ethereum. Other cryptocurrencies aren’t going to have nearly the same level of success as the top cryptos.
So, you never want to put all of your eggs in one basket.
Why?
Some reasons include:
- Owning multiple cryptocurrencies gives you the chance to find the diamond in the rough. You never know which currency is going to take off. Owning a bunch of them puts the odds in your favor.
- Having multiple cryptocurrencies in your portfolio leads to better returns overall. If one crypto is struggling, the rest will prop up and offset your negative returns. This will help you make consistent profits over the long run.
Which cryptocurrencies should I invest in?
The best possibilities to make excellent money over the long term in your cryptocurrency IRA include:
- Bitcoin
- Bitcoin Cash
- Ethereum
- Ethereum Classic
- Ripple
- Litecoin
- Monero
To learn more about the top cryptocurrency IRA companies, please click here to read my review article.
Maximize Your Yearly Cryptocurrency IRA Contributions
So many people fail to plan for their retirement. But not you. You wouldn’t be here otherwise.
And even those who plan seem to get it wrong.
How so?
They put aside money to invest for their retirement, which is great because it’s a huge necessity.
But they fail to put aside enough money to last as they enter their golden years.
Believe it or not, it’s always best to maximize your yearly IRA contributions. By maximizing them, you’ll give yourself the best chance to lead a happy and fruitful retirement when you get older.
Don’t believe me?
Well, by maximizing your IRA contributions you’ll capture two major benefits. They include the following:
- Maximizing your returns – in 2020, anyone below 50 years old can contribute a maximum amount of $6000 into their IRA. And if you’re older than 50, your total contribution including the catch-up contribution is $7000. Maximizing this payment means you’ll have additional capital to invest. At a compounded rate of 8%-10% per year over 20 years, you’re talking about adding $50,000-$100,000 to your nest egg.
- Cryptocurrency IRA contributions are tax-free or tax-deductible – depending on how you set up your IRA account, you’ll capture tax-free or tax-deductible gains. Many prefer maximizing their IRA account with tax-deferred income. With this method, they capture maximum growth and only pay their taxes once they take distributions during retirement. Others prefer tax-free growth. They pay taxes in advance and any income generated through the IRA account is completely tax-free.
Click here to learn more about the best cryptocurrency IRA companies right now.
Learn to Handle the Ups and Downs of the Market
At this stage, you should know that the market is going to fluctuate whether you like it or not. Bitcoin is flying high right now because the cryptocurrency market is burning hot. But it will cool down eventually and that’s something you’ll need to prepare for.
The great thing about this long-term investing strategy is your account will experience solid and consistent growth over many years. Instead of watching your investments like a hawk, you can check in on them periodically to determine your overall growth.
Here’s the thing:
Some years, your investment might not grow at all. This happens to long-term investors all the time. But the average growth rate over a period of 20 to 30 years definitely works in your favor.
As an example, 2018 wasn’t a very good year for Bitcoin. It experienced more than 70% negative growth and many investors believed that the party was over.
Guess what?
In 2020, Bitcoin has more than tripled its value! The party is far from over and many investors have made serious money from this digital currency this year.
The only way to win is to be in it. But you have to learn how to handle the ups and downs of the market or you’ll drive yourself crazy.
Or even worse, you’ll scare yourself out and sell your investments too early. You may even sell them for a loss and I don’t want to see that happen to any of my readers.
Commit to Your Plan and Stay the Course for the Long-Term
Finally, I’d like to once again remind you that cryptocurrency IRA investing is a long-term strategy. You’ll begin investing in your crypto IRA in your 20s, 30s, or 40s. You aren’t going to cash out this investment until you reach retirement age or later.
Don’t worry about immediate growth. Try not to focus on short-term gains. You’re in this investment for the long haul. And like every other long-term investor, you’ll reap the benefits when it counts the most during retirement.
Right now, you’re likely young and healthy and fully capable of working hard to earn a living. That might not be the case as you get older. So, do yourself a favor and focus on building wealth for your retirement. You’ll be glad you took care of this while you were young, so you’ll enjoy life as you get older.
Bottom Line
Hopefully I convinced you that the best cryptocurrency investment strategy is long-term investing in a crypto IRA.
Why do I love this strategy so much?
It does the following:
- Allows you to build long-term wealth
- Eliminates the need to make money immediately
- Minimizes the desire to day trade
- Let’s you to lead a comfortable life in retirement
Every one of these benefits should ring true to you. They’re critical to your long-term growth and success as a retirement investor.
Learn more about the top cryptocurrency IRA companies in my detailed review of the best organizations in the business.
