What Are The Risks & Benefits Of Long-Term Crypto Investments For Millennials?

by PRC Agency PR

Are you a millennial? How do you feel about cryptocurrency? If you're like many of your peers and are interested in crypto as an investment choice, make sure you understand the pros and cons of the digital currency market.

Read Wealth Building Way's new assessment of the prospects of cryptocurrency investments for your generation. More details at

If you were born between 1981 and 1996, you probably feel at ease with radically shifting economic environments and the acceleration of DeFi technology – it's what you've grown up with, after all. If you're not so up on the crypto thing, the guide gives a handy overview of the blockchain ecosystem and a comparison of asset classes for those of you interested in investing in digital currency.

Volatility

One of the key characteristics of cryptocurrency is its high volatility. While this isn't always good news for investors, it does present some potentially lucrative opportunities, especially for short-term buying and selling. Could decentralized finance be the way to both expand and safeguard your assets?

Moving With The Times

According to a Bankrate survey, nearly half of millennials are comfortable holding and using cryptocurrency with around 12% believing it to be the best way to invest money they won't need for 10 years or more. This is compared with just 9% of Generation X and 5% of the baby boomer generation.

Risk

Cryptocurrency's volatility, the guide explains, presents investors with the opportunity for large gains but with this comes a great deal of risk. For example, Bitcoin – the best-known digital currency – has provided impressive returns for those who invested during its infancy. The article cautions that you should consider your risk tolerance and investment objectives before committing large amounts of capital.

Crypto For Retirement

The piece discusses how, as you reach your 40s, you might be considering digital currency as a worthy addition to your retirement investment portfolio. A Capitalize survey suggests that as many as 54% of your generation are including crypto or NFTs as part of their financial plan for retirement. The article recommends you maintain diversity in your portfolio choices. While crypto has its advantages, investing solely in one asset class is unwise.

Other factors to consider include risk management strategies such as stop-loss orders and dollar-cost averaging, regulatory considerations in an ever-evolving crypto space, security concerns relating to hacking, and the lesser-known tax implications of digital currency.

The guide states, “A significant proportion of this age group, 67% of millennials, finds cryptocurrencies more appealing since the recent boom, and 75% wish to learn more about these assets. This generation’s optimism and willingness to explore new technologies position them as the driving force behind the growth and adoption of cryptocurrencies.”

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