Is Crypto Part of Your Retirement Plan?

What is Crypto Investing?

Crypto investing involves purchasing digital assets, such as Bitcoin or Ethereum, either directly through exchanges or indirectly via funds and retirement accounts. Unlike traditional investments like stock and bond markets, cryptocurrencies are decentralized and highly volatile.

For a deeper dive into the underlying technology, check out our guide on what blockchain technology is. Understanding blockchain will help you understand why cryptocurrency is being considered for long-term retirement savings strategies.

How to Use Cryptocurrency for Retirement Savings in 2025

Crypto-powered retirement funds are still in their early days, but they’re gaining traction. ForUsAll, a fintech platform, allows employers to offer 401(k) retirement accounts that include cryptocurrency. Allio Finance is another example, letting employees add crypto assets to their retirement saving plans.

This trend mirrors broader adoption of blockchain in payments, where businesses are leveraging the technology for speed, transparency, and reduced costs. In 2025, more investment options are emerging, and the regulatory environment is beginning to catch up.

Best Crypto IRA Platforms 2025

Self-directed IRAs make it possible for investors to allocate savings into non-traditional investments, including cryptocurrency. Some of the leading crypto IRA platforms in 2025 include:

• iTrustCapital – Focused on offering Bitcoin, Ethereum, and alternative assets like gold.
• BitcoinIRA – One of the earliest players, with broad crypto asset class access.
• BitIRA – Emphasizes compliance with the Department of Labor and SEC standards.

These new platforms expand the universe of retirement investment options, allowing individuals to diversify retirement accounts beyond traditional investments and into digital assets.

Is Crypto a Good Long-Term Investment for Retirement?

Looking at sky-high inflation, many investors are asking whether crypto’s high returns could be a solution for their retirement plan. Bitcoin’s history shows extreme swings: it fell by 80% in 2018, then rose by 300% in 2020, reaching nearly $68,000 in 2021. Where there is potential for massive gains, there is also potential for significant losses.

The U.S. Senate Committee on Banking, Housing, and Urban Affairs has already introduced legislation like the Retirement Savings Modernization Act. More recently, the Trump administration issued an executive order encouraging Americans to use retirement accounts for alternative assets, including cryptocurrency, private equity, real estate, and gold. Read more about the announcement here.

Bitcoin vs Ethereum for Retirement Portfolio

• Bitcoin is widely seen as digital gold—a store of value and inflation hedge.
• Ethereum, on the other hand, is more like a technology platform, powering decentralized finance and smart contracts.

To understand how these digital assets affect broader financial systems, see our article on blockchain in accounting. Both Bitcoin and Ethereum are more than just investments; they represent different use cases for blockchain technology.

Diversifying Retirement Portfolio with Digital Assets

Diversification remains a cornerstone of retirement saving. Traditional investments like stock and bond allocations still make up the majority of pension plans and retirement accounts. However, digital assets are increasingly being included in 401(k) and IRA accounts as part of a broader investment strategy.

Adding cryptocurrency as an alternative asset doesn’t replace traditional investments but complements them—especially during periods of inflation and market uncertainty. Businesses are adopting similar strategies in B2B payments, where blockchain is helping companies diversify how they manage cash flow.

Traditional 401k vs Crypto Retirement Benefits

A traditional 401(k) relies on stock and bond markets to grow retirement savings. While these remain stable investment options, crypto retirement benefits offer unique advantages:

• Potentially higher returns from a high-growth asset class.
• Greater diversification beyond traditional investments.
• Flexibility to invest in alternative assets like crypto, gold, and private equity.

Still, these benefits come with higher risk and volatility. As with managing corporate finances, a careful strategy is essential. Explore our insights on how to increase cash flow and drive growth to see parallels in balancing risk and reward.

Risks of Investing in Crypto for Retirement Planning

Crypto’s volatility remains its biggest risk. Sudden downturns can wipe out large portions of value in short periods. Security risks, such as exchange hacks, and uncertain government regulations, add additional concerns.

That said, completely avoiding crypto may mean missing out on a potentially transformative asset class. The key here is balance, by allocating a small portion of your retirement savings while keeping the majority in traditional investments. Businesses are already experimenting with this balance in B2B crypto payments, showing that adoption comes with both opportunities and risks.

Government Regulations on Crypto Retirement Accounts 2025

Regulators like the Department of Labor and the Securities and Exchange Commission are still clarifying rules for including cryptocurrency in retirement accounts. While progress has been made, uncertainties remain around taxation, custody requirements, and investor protections.

The Trump administration’s recent executive order signals a major shift toward embracing alternative assets, including cryptocurrency, in retirement saving strategies. This may pave the way for clearer regulations and more widespread adoption.

Crypto continues to move from the fringes into mainstream retirement saving strategies. While it is a higher-risk investment option, it offers unique diversification and growth potential that traditional investments cannot match.

If you’re considering including cryptocurrency in your retirement plan, consult a financial advisor, stay informed on government regulations, and start small with a balanced allocation.

Ready to explore the future of digital payments and assets? Learn more about Paystand’s Bitcoin initiatives here.