Will cryptocurrencies help supplement my post-retirement income? Yes, but limit your exposure: experts

Will cryptocurrencies help supplement my post-retirement income? Yes, but limit your exposure: experts

Dubai: Cryptocurrencies have emerged as one of the most popular investments currently, maybe even more so than the meme stocks that broke the internet earlier last year. Once you retire, you'll most likely need income outside of your primary retirement fund to keep up with your living expenses. That's where your ‘secondary savings’ or investments come in – which needn’t be a lump sum amount but rather a recurring income dedicated to be spent on routine costs. However, while you may want to add cryptocurrencies like Bitcoin, Ether or any other digital asset to your portfolio, veteran investors warn that you shouldn't do so at the expense of other investments. Investing in cryptocurrencies for retirement may enhance your investment returns as well as provide broader diversification, although it also introduces substantially more risk to your retirement portfolio. A key argument for adding crypto to retirement savings is the diversification benefit of an asset class largely uncorrelated to traditional assets. Cryptocurrencies are also touted by enthusiasts as an emerging asset class that maximises returns relative to the risk investors are taking. The high liquidity associated with cryptocurrencies make it an investment avenue if you're seeking short-term profit. Digital currencies can be