Many investors are putting money into cryptocurrency in an effort to join the ranks of those who have gotten rich by trading in digital coins.
Now just because one 401 provider will be offering cryptocurrency doesn’t mean every provider will immediately follow suit.
Of course, whether it pays to add cryptocurrency to your 401 is a different story.
Ultimately, the long-term value of digital currencies like Bitcoin will depend on how widely accepted they become as a form of payment.
In fact, a lot of people who buy cryptocurrency do so on a short-term basis because they know its future is shaky.
It’s also a responsible way to introduce cryptocurrency investing to people who may be excited to dabble in it, but don’t really know much about it other than it’s in the news a lot.
While there’s no such thing as a risk-free investment, cryptocurrency is a lot riskier than putting money into stocks, which have a proven history of gaining value over time.
In fact, the 5% threshold mentioned earlier might be a good start if you’re going to get into cryptocurrency at all.