Cryptocurrency is becoming an increasingly popular tool for long-term investments, and its potential for retirement savings is becoming more evident. In the context of instability in traditional financial markets and rising inflation risks, cryptocurrencies can offer unique opportunities for diversifying retirement assets. In this article, we will discuss why it is worth including cryptocurrency in your retirement plan, which cryptocurrencies are best suited for this, and how to create an effective crypto-retirement portfolio. How has cryptocurrency performed in the past?
Bitcoin, which appeared in 2009, has come a long way from an experiment to a key component of global finance. In 2010, its value was less than $1, and many doubted its future. However, it grew every year, attracting more and more investors. In 2017, its price reached $20,000, and in 2021 it exceeded $60,000, sparking a wave of interest and new investments. The biggest growth was recorded in 2025 when Bitcoin surpassed the mark of $120,000 and set a new record at $123,000. This growth was driven by institutional investments, cryptocurrency ETFs, and progressive legislation in the US, such as the CLARITY Act and GENIUS Act. Additionally, in March 2025, US President Donald Trump signed an executive order to create a strategic Bitcoin reserve, which strengthened confidence in cryptocurrencies as a long-term asset.
However, as with any market, there have been downturns. Cryptocurrencies are subject to high volatility, which makes them a risky asset. Additionally, the cryptocurrency market is vulnerable to fraud, hacking attacks, and manipulation. It is important to consider these factors and approach the selection of cryptocurrency for forming a retirement portfolio carefully.
Defining your retirement goals
The retirement goal helps to understand how much money is needed for a comfortable retirement and how to save it. It is important to consider when you want to retire, what expenses you will face, and what income you need for a comfortable life. Usually, to maintain a usual standard of living, you will need 70–80% of your current income. For example, if your income is 20,000 USD per year, then in retirement you will need to plan expenses in the range of 14,000–16,000 USD.
To calculate the required savings amount, use the formula:
(Annual retirement expenses — income after retirement) × number of years in retirement.
Example: if your expenses are 15,000 USD per year, and income from other sources is 5,000 USD, and you plan for retirement for 15 years, you will need 150,000 USD in savings: (15,000 - 5,000) × 15 = 150,000 USD.
How to create a crypto retirement portfolio?
When creating a cryptocurrency retirement portfolio, it is important to consider your risk profile and long-term goals. Start with diversification, splitting assets into stable and high-risk categories. This will help minimize losses and increase the chance of stable income. Key factors when choosing cryptocurrencies will be liquidity, project reputation, and long-term prospects.
Evaluate which cryptocurrencies can provide reliable growth in the future and which are subject to high risk. A diversification strategy will help balance the portfolio with different levels of risk. In the next section, we will look at which cryptocurrencies are worth choosing for a retirement portfolio.
Which cryptocurrencies are suitable for retirement savings?
For retirement savings, it is better to choose cryptocurrencies with long-term stability and growth potential that will ensure capital preservation and, if possible, generate income. According to leading crypto experts and institutional investors, Bitcoin (BTC) is the best cryptocurrency for these purposes for several reasons:
Long-term growth: since its appearance in 2009, Bitcoin has shown consistent growth despite short-term fluctuations, making it an excellent choice for long-term investments.
Inflation protection: the limited supply (21 million coins) makes Bitcoin a deflationary asset, protecting it from inflation and devaluation.
High liquidity: Bitcoin is the most liquid cryptocurrency, ensuring ease of buying and selling on crypto exchanges.
Global recognition: Bitcoin is recognized by institutional investors and government bodies, confirming its long-term value.
Reliability and security: PoW — Bitcoin's blockchain, provides maximum transaction security and protection against external interference, making it safe for retirement investments.
For a balanced crypto-retirement portfolio, in addition to Bitcoin, you can consider altcoins with growth potential and stability:
Ethereum (ETH) — the second-largest asset by market capitalization after Bitcoin, stable and promising for long-term investments;
XRP (Ripple) — used for fast and cheap interbank payments, has strong partnerships with financial institutions;
Solana (SOL) — high transaction speed and low fees make it ideal for financial applications;
Polkadot (DOT) — provides interaction between blockchains, important for cross-network exchanges and integration of ecosystems;
Chainlink (LINK) — integrates external data for smart contracts, critical for DeFi and other financial applications;
Cardano (ADA) — focused on security and sustainable solutions for the real sector and government institutions.
It is also worth holding some stablecoins (e.g., USDT or USDC) to stabilize the portfolio and protect against volatility during periods of market instability.
How to choose a platform for cryptocurrency savings?
For effective management of a cryptocurrency retirement portfolio, it is important to choose a platform that ensures security and ease of working with assets. The platform should support the necessary cryptocurrencies, have high liquidity, and provide features for portfolio management. It is also worth considering security, including two-factor authentication and data encryption.
What to consider when choosing a platform:
Support for necessary cryptocurrencies and tokens;
High liquidity for ease of buying and selling;
Tools for portfolio management (automatic rebalancing, reports);
Reliable security measures: two-factor authentication, encryption;
User-friendly interface and support for mobile applications;
Availability of independent audits and transparency of operations.
For example, the cryptocurrency exchange WhiteBIT provides a high level of security for its users by implementing advanced data and fund protection technologies:
Two-factor authentication (2FA): adds an extra layer of protection when logging into the account.
Passkey: an alternative to 2FA, using a unique identifier to confirm actions.
Anti-phishing: allows adding a personal code to system emails, preventing phishing attacks.
Identity verification (KYC) and AML checks: ensure transparency and compliance with regulatory requirements.
Device and address management: allows controlling active sessions and permitted addresses for withdrawals.
Automatic logout due to inactivity: enhances protection against unauthorized access.
In addition, WhiteBIT stores 96% of users' funds in cold wallets with multi-signature and uses WAF to protect against hacking attacks. Assets are insured for $30 million through an insurance fund, replenished by transaction fee contributions. The exchange underwent an independent audit and received an AAA rating, ranking among the top 3 safest cryptocurrency exchanges according to cer.live and among the most secure exchanges in the world according to Hacken audit results.
Where to store cryptocurrency for retirement?
Cryptocurrency can be stored on exchanges, where assets are kept in the platform's wallets, and the exchange manages the private keys. However, for long-term storage and retirement savings, it is more advisable to use hardware wallets — devices that allow you to fully control your private keys. Unlike an exchange, where access to assets depends on the platform, with a hardware wallet, access is only available to you, minimizing risks associated with issues on the exchange side and ensuring full control over your assets. Strategies for accumulating cryptocurrency for retirement goals.
The concepts of accumulating cryptocurrency for retirement goals can vary depending on your risk level and investment preferences. Let's consider several popular approaches.
Crypto deposit
On platforms like WhiteBIT, you can place your assets in a crypto deposit, earning interest for storage. This strategy allows you to earn on cryptocurrencies without actively participating in trading or risking high volatility. Generally, the returns on cryptocurrency deposits are higher than on traditional bank deposits.
Averaging strategy (DCA)
Dollar-Cost Averaging (DCA) — a strategy that involves regular investments in cryptocurrency for a fixed amount regardless of the market situation. This approach helps to minimize risks associated with high market volatility and allows purchasing cryptocurrency at an averaged price, reducing the likelihood of entering during moments of strong fluctuations.
Long-term storage (HODLing)
HODL — a long-term cryptocurrency storage strategy based on the expectation of its price growth over time. Investors buy assets and hold them for several years, ignoring short-term market fluctuations. This is especially suitable for major cryptocurrencies like Bitcoin.
Staking
Allows earning on cryptocurrencies that operate on Proof-of-Stake (PoS). The essence of the strategy is to 'freeze' a certain amount of cryptocurrency on the platform and receive rewards in the form of new coins. This is a good way to earn passive income on savings.