A 51-year-old single woman fully invested in bitcoin, not wanting to cash in despite volatility. She bought bitcoin at $48,000, then it fell to $16,000. She trusts Strategy CEO Michael Saylor and has her retirement in bitcoin. Borrowing against bitcoin through Firefish, she locks bitcoin as collateral for loans.

However, having 100% of retirement in bitcoin is risky. Financial planners recommend only allocating up to 5% to crypto. Strategy stock is closely tied to bitcoin and has been declining. Borrowing against bitcoin can be risky if prices drop sharply, leading to automatic liquidation of collateral.

The woman’s decision to go all-in on bitcoin aligns with a growing trend of retail investors becoming more bullish on crypto. Strategy’s stock is highly volatile due to its close ties with bitcoin. Despite market uncertainty, some investors remain optimistic about the future of bitcoin.

The executive order by President Donald Trump aims to provide more access to alternative assets like bitcoin in retirement plans. However, such a move comes with risks, especially when investing heavily in a single asset. It’s crucial to have a well-thought-out estate plan for digital assets like bitcoin.

Maintain emergency funds outside of crypto positions to avoid selling during downturns. Leverage can amplify gains but also increase losses. Understanding loan terms, liquidation thresholds, and grace periods is essential. Seek advice from fiduciaries and tax experts to ensure tax efficiency and financial stability.

Read more at Yahoo Finance: Why don’t more people do what I do?