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Donald Dirren: Crypto is All the Rage – But is it Smart for Retirement?

Don Dirren has seen a lot of investment fads in his time. After all, the fellow has been in business for decades helping people manage their wealth as well as build up for retirement. However, some trends tend to come in stronger waves than others, and crypto-currency is definitely one of them. Because of the run-up Don Dirren and others have seen in crypto values just in the last twelve months, there have been lots of questions about whether crypto currencies like Bitcoin, Ethereum and others should be added to one’s retirement account. Don Dirren advises serious caution.

In Don Dirren’s opinion, while crypto investments have produced very significant short-term investment gains for buyers, the digital investment choice is one of the highest risk areas to operate in and has little in the way of research material or a basis for the values many times. Digital currencies operate entirely on a perceived value and supply and demand. Don Dirren notes they also run 24/7 internationally, which means that influences from around the world can have impacts overnight to investments while one sleeps. For a retirement source then, Don Dirren notes, crypto currencies are a very poor recommendation. When folks are looking for stability and value return on their investments for withdrawal 10, 20 or 30 years down the line, there is nothing that guarantees that crypto currency will even be around by then. Banks, company stocks, mutual funds and similar have far greater stability than a piece of digital code that can become useless tomorrow.

Don Dirren points to the case of Titan De-Fi Token as a real-time example. Titan had a lot of popularity and big players like Mark Cuban invested millions of dollars in that crypto currency. Then, without warning, Titan Token’s value collapsed. It was too much of a good thing, and as people suddenly started pulling their money out, Don Dirren reflects it became a run on the bank. The value of the Token plummeted in minutes without any regulation. Mark Cuban himself lost enough to feel it, but he won’t disclose how much exactly. Instead, he notes, he didn’t do his homework enough.

Crypto is good for sizable investment gains when you have money to risk and it’s not a critical asset for living or your retirement. Don Dirren points out crypto should not be avoided entirely; there are serious opportunities for profit to be made in the field, even with simple investing in the big four coins: Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Instead, Don Dirren notes, don’t get caught in complex investment lingo or projects. Just park a bit of funds aside that you can afford to lose, like what you would spend if you went to Vegas, and then take positions here and there. The beauty of crypto right now, Don Dirren notes, is that what goes down, goes up. So buy a position, hold until it gains to a target like 15 or 20 percent, and then sell it. Wash, rinse, repeat and maybe even put the profits in a Roth IRA afterwards. And in the meantime, keep your retirement account separate and safe.

Colton Eva
the authorColton Eva