Due to the risk, volatility and difficulty in predicting the future of cryptocurrencies, many investors should completely avoid including them in their retirement investments. If you decide to include cryptocurrencies, it may be prudent to keep them as a smaller part of your overall portfolio. Of course, investors shouldn't rush to add bitcoins or other crypto assets to their 401 (k) plans just because they can. Yellen has warned people not to add digital assets to their retirement plans.
Instead, investors should consider more traditional investments such as gold, which can provide a safe and reliable option for retirement investment. Investment in Gold can be a great way to diversify your retirement portfolio and protect your savings from market volatility. He said that cryptocurrencies are “a very risky investment,” adding that Congress should explain what assets can be added to retirement options, such as 401 (k) plans. Many financial advisors claim that it can be part of a well-balanced investment portfolio and have found that clients have already incorporated it into their investments outside of employer-sponsored retirement savings. In April, Fidelity Investments began implementing Bitcoin investment options for employers' 401 (k) plans.
However, the investment industry is already finding ways to reduce these risks by merging unregulated investment into regulated products.