Should you invest your super in cryptocurrencies like Bitcoin?

Should you buy cryptocurrencies like Bitcoin for your super fund? It’s reportedly an increasingly popular retirement investment.
The post Should you invest your super in cryptocurrencies like Bitcoin? appeared first on The Motley Fool Australia. –

When it comes to superannuation, most Australians tend to be pretty happy if their super funds grow at a modest rate, perhaps with some volatility protection as well.

That’s why your average super fund is usually classed as ‘balanced’. This means it invests your money across multiple asset classes to balance between growth potential and volatility protection.

These asset classes usually consist of a mix of ASX shares, international shares, bonds and cash. Since most Aussies tend to be pretty protective over their super funds’ balance, the idea of investing in cryptocurrencies like Bitcoin (CRYPTO: BTC) through super might be unthinkable.

But this idea is reportedly gaining steam.

CEO of BTC Markets, Caroline Bowler, recently told BusinessInsider that she estimates the cryptocurrency exchange now has 5 times as many self-managed super funds (SMSFs) trading on it as during the last cryptocurrency boom in 2017.

“People are looking at it now as something other than as a speculative thing. They’re looking at it as something that’s been around, that’s been tested, that is a genuine investment”, she told BuinsessInsider.

Bitcoin super?

Now, most industry and retail super funds do not let members invest in Bitcoin or any cryptocurrency for that matter. But those restrictions don’t apply to SMSFs.

In fact, according to the Australian Taxation Office (ATO), an SMSF can invest in any ‘collectable or personal use assets’. There are rules around the interpretation of what constitutes a collectable or personal use asset, which you can (and should) read more about.

But these can include anything from gold bullion, artworks and jewellery to wine, boats or vintage cars. And yes, cryptocurrencies like Bitcoin.

So, should you add Bitcoin to your super fund?

Well, it pays to remember that your super fund has the potential to be your biggest asset for retirement outside your family home. As such, you might want to consider the impacts of investing these funds in an asset like Bitcoin.

Cryptocurrencies are some of the wildest and most volatile assets in existence. Remember, Bitcoin has fluctuated between ~US$7,500 a coin and ~US$60,000 a coin in just the past 12 months. And it famously crashed by more than 80% between December 2017 and December 2018.

If you can’t handle that kind of wild ride in your super fund (or indeed out of it), it might not be worth even considering including Bitcoin.

But it’s certainly interesting that some investors are choosing to pursue Bitcoin and other cryptocurrencies with their retirement savings.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 15th February 2021

More reading

Sebastian Bowen owns shares of Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Should you invest your super in cryptocurrencies like Bitcoin? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!