Many investors dream of securing a comfortable retirement due to the crazy rise in cryptocurrency prices. In this regard, it has become fashionable in the United States to open cryptocurrency retirement accounts, despite experts warning about the risk of losing all savings if the market collapses.
Custodian companies that accept investments in these self-directed individual retirement accounts, instead of investing clients' regular contributions in stocks or other less risky assets, use them to buy bitcoin and other types of digital currencies.
Exactly how this scheme works was explained by Trevor Herzt, CEO of one such company, CoinIRA: “An investor creates a self-directed individual retirement account, transfers funds from an existing pension plan or individual retirement account. into a new individual retirement account and then uses that money to buy bitcoin or other cryptocurrency. Such cryptocurrency is held by the custodian company using cold storage so that the assets cannot be stolen by hackers."
While interested companies promise investors huge potential returns in the long term, more experienced market players are warning such investors that they should be prepared to lose everything.
Stephen Cameron, director of pensions at Aegon, which specializes in pension insurance and asset management, believes that Bitcoin and other types of cryptocurrencies are being considered by some inexperienced investors as an exciting investment, have a very high level of risk and are not suitable for retirement plans.
According to http://www.moneyinternational.com
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