When it comes to investment instruments, many of us first think of traditional investment instruments such as gold, silver and stocks, which have been preferred for many years. As such, it may take some time for investors to break their chains for new tools such as cryptocurrencies.
In this article, which we think will be read with interest by those who have not yet broken their prejudices against cryptocurrencies or are undecided about whether to invest or not, we also talk about examples from life and talk about whether we can retire early from the crypto money market.
Can we retire early with cryptocurrency investments?
Many investors think that investing in cryptocurrencies can be a way to increase their retirement savings. Given the growing interest in cryptocurrencies in recent years and the occasional extraordinary rise in cryptocurrencies, it’s only natural for us to take this thought and dream of retiring through this market much sooner. However, the situation may not always be as easy as we think.
The fact that cryptocurrencies are not yet accepted as an official investment tool or currency in many countries and are not subject to official restrictions causes us to qualify these assets as more “risky assets”. This proves to us how important the right strategy and knowledge is when investing in cryptocurrencies.
Therefore, if we do not develop a good plan and strategy before making our investments, this dream may result in disappointment and we may lose a great deal of our savings. For example, thousands of people in Australia have suffered millions of dollars in losses in recent months. Let’s take a look at this issue together.
Australia’s Do it yourself pension funds have hurt investors in crypto.
Do it yourself funds are a type of investment based on the principle of creating your own mutual funds instead of getting support from an intermediary such as an investor’s investment advisor or private sector experts. DIY pension funds offer less restrictions to invest because they are outside the jurisdiction of the institutions that supervise professionally managed funds, and these funds make up a quarter of Australia’s pension pool. According to the news reported by Reuters on March 2, 2023, thousands of Australian investors using these pension funds faced a loss of millions of dollars by investing their savings in cryptocurrencies, which we can call more risky, in order to retire early.
One of the investors in Australia mentioned in this news, 50-year-old Peter, invested his savings of approximately $130,000 in these funds. Despite making huge profits when Bitcoin was at its all-time high, it lost a large amount of its main savings with the falling season that started later. However, Peter said that he still continues to accumulate bitcoin and stated that he maintains his belief that crypto is a new alternative to retirement.
Cryptocurrencies are highly volatile assets and can be affected very quickly by news feeds. In other words, prices may rise in a moment with positive news, and prices may decrease rapidly with negative news. Therefore, such a high price volatility can cause your savings to depreciate at a high rate, as in Peter’s investment adventure. Speaking of this negative event that has happened and that we do not want to live, many of you have in mind, “Well, is there anyone who has managed to retire with crypto investment?” We are sure that the question has been answered.
According to Fortune news, Rob, who retired early with investments in Shiba Inu at the age of 35, is not only retired.
The supermarket warehouse manager named Rob, who was mentioned in the news of Fortune magazine on November 3, 2021, discovered the Shiba Inu when he read the brochure written by the creator of the Shiba Inu named Ryoshi in 2020 and invested $ 8,000. With the Shiba Inu’s value skyrocketing in 2021, the value of his savings has risen to $5.7 billion. At the age of 35, Rob quit his $68,000 yearly job, which he said was very stressful, and retired early. He said that although the amount he earned was a huge amount, he would spend the money wisely and would like to buy a house. Rob, who is married and has children, expresses his surprise with these sentences:
“I’ve been in a lot of poverty in the past. I couldn’t have dreamed of having that much money.”
Of course, not every Shiba Inu investor has been as lucky as Rob. Those who have invested the same amount as Rob from his historic peak have largely eroded their savings and perhaps lost their faith in the cryptocurrency market. This event; It reminds us once again how important the right strategy and planning is in money markets. Of course, there are many stories in money markets, for better and for worse, with gains and losses. But when we take Rob’s early retirement journey as a basis, it is necessary to make it clear that the crypto market is an alternative chance for retirement. And finally, we can give you a few tips on things you can do to increase your chances.
What can we do to increase our chances of retirement from crypto?
- You can learn fundamental-technical analysis with various trainings and guide your investments accordingly. To explain a little more, you will have knowledge of what to look for when reviewing projects.
- You can set a roadmap for budget planning and develop strategies based on it.
- We need to do psychology management well. A deficiency in this area can cause us to mismanage our investments and incur losses accordingly.
- As cryptos are highly volatile assets, as we mentioned above, they can be affected very quickly by news feeds. For this reason, we need to minimize our risks. By following the positive-negative news flow, you can shape your investment strategy accordingly.
This content does not constitute investment advice in any way.
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