Of course, investors shouldn't rush to add bitcoins or other crypto assets to their 401 (k) plans just because. A person about to retire or in the process of retirement, on the other hand, should be much more conservative with their investment approach. In fact, I would venture to suggest that cryptocurrencies be avoided entirely. Cryptocurrencies are incredibly volatile, as many observers know.
The entire digital asset market has lost approximately two-thirds of its value over the past eight months. Investing a large sum of money here that you'll need in a short period of time is probably not a wise decision. If you're approaching retirement age, it may be best to avoid cryptocurrencies entirely. Because it's so risky and volatile, it could spell trouble for your retirement if you fail.
Similarly, if you're a risk-averse investor, Bitcoin's ups and downs could make it a stressful investment. While Fidelity Investments will become the first major retirement fund firm to allow participants to hold Bitcoin in 401 (k) accounts, the company and the industry in general could continue to feel rejected by government regulators on the move.