Retirement is often treated as a numbers game. The more diverse your investments, the “steadier” it is supposed to grow. There are a lot of different investments people use to achieve this aim, but cryptocurrency is a new one. While not too many are jumping on this train, there are some that thing cryptocurrencies are bound to grow over time. To help you decide if this is right for you, it is important to know what your options are, and how cryptocurrency in a retirement plan differs.

Long-Term Investing Principles

Long term investments should be low-risk, low-reward. This means that you probably aren’t going to strike it rich in a year off of your retirement accounts, but you can count on slow, steady gains. The goal of a retirement account not to really need to think about it. “Set it and forget it” is the MO here. So, while higher risk can lead to better gains in the short run, they also require more supervision that you don’t want to deal with. This doesn’t mean you can’t invest in those things, but don’t dedicate your retirement funds to it.

Cryptocurrency Market Behaviors

This is a tough section to write, because there is no standard. Outside of the bigger coins, cryptos are all over the place. What you can see from looking at Bitcoin, the big kid on the playground, is sharp spikes followed by sharp downturns. They are relatively random, and pretty extreme.This makes them questionable retirement choices, and not particularly suited to the long-term safety goals of a retirement account.

The 30-Year Rule

A principle to keep in mind is that most investments will see a net gain after 30 years. While the research on this wasn’t done with cryptos, and they aren’t that old, take this with a grain of salt. Typically, though, this rule applies to almost everything. The reason for that is, despite ebbs and flows, the value of most investments trends upward. Ceilings get higher, and so do floors. That doesn’t mean that all investments are created equal, though.

This doesn’t mean that cryptocurrency in a retirement account is a good idea. Basically, it just states that you might not lose everything over time. You’ll want to optimize as best you can, though, so it would be a much better idea to invest elsewhere. Accounts like Roth IRAs and 401ks offer tax advantages that will make them a much more lucrative pick on average. Index and mutual funds offer higher average gains, and great diversification by their very design. All of these would be a better place for your retirement cash. You can save your gambling money for cryptocurrencies.

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