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How do I open a Bitcoin IRA? | Some Top Things To Consider!

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How do I open a Bitcoin IRA?

How do I open a Bitcoin IRA? What can a Bitcoin IRA help me achieve? Why are some investors considering adding Bitcoin to their retirement investment portfolios through Bitcoin IRAs? If you have been looking for answers to questions about investing in Bitcoin for your retirement years, then reading this article is a good starting point. Herein, you will get important information that will guide you in the right direction, so that you don’t make the mistakes that many have made in the past.

P.S.

See my top-5 recommended Bitcoin IRA service providers

What is a Bitcoin IRA?

A Bitcoin IRA is simply an IRA that allows you to invest in different cryptocurrencies using your retirement savings. These IRAs act as self-directed IRAs (SDIRAs) that are offered by a handful of financial institutions across the U.S. Self-directed are gradually becoming popular in the retirement investment space, due to the fact that they allow investors to hold alternative investments, in a bid to diversify their retirement investment portfolio.

If you are curious to know whether you can open your Bitcoin IRA while still holding on to your traditional IRA, then the answer is yes! It is possible for you to retain the funds or assets in your other IRAs, and separately build wealth using a self-directed IRA that allows you to hold cryptocurrency IRA in your IRA.

More about Bitcoin IRAs

As you may already know, in a standard individual retirement account you are allowed to hold traditional assets such as:

One of the main differences between the standard IRAs and a Bitcoin IRA is that a Bitcoin IRA offers you the additional opportunity to invest in cryptocurrencies such as Bitcoin.

What about the other cryptocurrencies? Can I still include them in my Bitcoin IRA? Yes, you can. Although you will find most SDIRAs that allow you to invest in cryptocurrencies are referred to as Bitcoin IRAs, this does not mean that you cannot purchase and hold other crypto assets. You can, in fact, hold cryptocurrencies such as:

Why bother to trade bitcoins in a Bitcoin IRA?

A significant number of people usually trade cryptos on their preferred exchange platforms and proceed to withdraw their profits at will. The profits from bitcoin trades are usually taxed in the same manner as profits from stock trades are taxed. If the investor’s stocks are held for one year or less, the gain is classified as short-term and is usually taxed at ordinary tax rates. If they’re held for more than one year, then they’re viewed as long-term and are usually taxed at lower rates (anything between 0% to 20%, depending on your trading income).

When you trade in a Bitcoin IRA, however, you do not have to stress about the taxes anymore, because your gains are usually tax-free or tax-deferred. With a traditional IRA, the contributions made by the investor are usually tax-free, hence the taxes have to be deferred on gains. With a Roth IRA, on the other hand, contributions from the earned income are usually taxed, so that the gains can all be tax-free.

Owing to the very volatile nature of cryptos, they’re mostly for less than one year, where they generate short-term gains in the process. It is such a good idea to trade in a Bitcoin IRA since it shelters one’s gains from taxes.

This does not mean that you cannot invest in cryptos to get the long-term gains, but the truth of the matter is that if you make your entry into the market at the right time, you can amass several thousand dollars without having to break your back for it.

How do I open a Bitcoin IRA?

If you do your research about different Bitcoin IRAs, you will find that they have different approaches to onboard new clients. Whereas a company in this industry may have passed all the quality checks at the time of registration, this does not necessarily mean that its services are genuine and that its staff members have the clients’ best interests at heart. You should, of course, do your research to ascertain that the company you choose has a proven track record. Consumer trust sites such as Better Business Bureau, Business Consumer Alliance, and Trustpilot are good sources of legit consumer reviews. When you find a good fit, you can expect to follow the following account opening process:

  1. Look for a reliable Bitcoin IRA custodian to administer your account.
  2. Fill the account application forms on the company’s official website. It is a good idea to have the same type of documentation that you would have if you were opening a regular IRA, including those that prove your name, physical address, Social Security Number, Birthdate, and driver’s license.
  3. Once your Bitcoin IRA is active, deposit funds into it.
  4. Start trading cryptocurrencies

Alternatively, if you want to simplify the whole process instead of complicating each step:

then you might want to check out these recommended Bitcoin IRAs I link to below, claim your free guide and contact their support staff so that they can hellp you open your first crypto IRA.

Did you know that you can also transfer some or all the funds in your IRA or 401(k), provided that the terms of that 401(k) or IRA allow it? Instead of having to fund a Bitcoin IRA with your out-of-pocket money, you can simply roll over the funds in your IRA and begin trading cryptos as soon as the money hits your account.

>>Read about how you can rollover the funds in your IRA<<

Is it worth it opening a Bitcoin IRA? Honestly?

Well, this is a question that highly depends on a number of factors, the main one being the risk aversion of the investor. Cryptocurrencies have a high-risk high reward profile, that can work for or against you. You can make a killing in such a short time, or lose a significant portion of your retirement capital within no time.

If you are a long-term investor, however, the short-term volatility should not bother you as much. If you study the change in the value of cryptocurrencies over a 5 to 10-year horizon, you’ll be surprised at how much money you can make for hodling your tokens (hodl is a term that means holding cryptocurrencies).

There is a reason why the smart investor worldwide invest in cryptocurrencies.

5% to 10% of your retirement savings are sufficient to bring you some impressive returns if placed in a Bitcoin IRA. This, however, is all up to you, and the retirement financial goals that you have set for yourself and your family.

See Gold Retired’s Top-5 Recommended Bitcoin IRA companies

OR maybe you are interested in another alternative asset:

See Gold Retired’s Top-5 Recommended Gold & Silver IRA companies

We have come to the end of this article in which we have addressed the question “How do I open a Bitcoin IRA?”. I hope that you found it interesting and that you now know how to get started with opening a Bitcoin IRA. Let me know if you have any questions about this topic – drop the question in the comments section so that I can get back to you ASAP!

I wish you well,

Eric, Investor and Team Member at Gold Retired!

Can I Buy Bitcoin in an IRA? Is It Really Worth Trying Out?

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Can I buy Bitcoin in an IRA?

Can I buy Bitcoin in an IRA? Are there any unique laws that govern the purchase of Bitcoin using an IRA? If you’re trying to look for ways to invest in Bitcoin using your IRA, and you’ve landed on this article today, then you’re in the right place. Herein, I will be taking you through how you can invest in Bitcoin using an IRA legally and safely. You will, of course, have to do some background research to ascertain that the companies you’re dealing with during the process are all legit and professional, but the information you read here will help you get started on the right foot.

P.S:

See Gold Retired’s top-5 recommended Bitcoin IRA service providers

Is it possible to buy Bitcoin using an IRA?

It is possible for an investor to hold Bitcoin in their 401(k), but it is highly unlikely that you will be allowed to use this option. Just like stocks and funds, Bitcoin can be bought in an investor’s IRA or 401(k). From a practical standpoint, however, most employer-sponsored 401(k) plans do not allow for employees to use alternative investment options such as Bitcoin, due to the restrictive ERISA fiduciary rules.

The current fiduciary rules governing employer-sponsored plans state that retirement savings plans should offer a sufficient number of investment options without necessarily exposing the participants to massive losses. Owing to the very volatile nature of cryptocurrencies, most employers tend to shy away from offering such investments as retirement plan options. That said, however, Coinbase and ForUsAll (a 401k service provider) are trying to figure out a way in which retirement plan participants can be allowed to hold up to 5% of the portfolio assets in Bitcoin (or other cryptos).

Business owners who have opted to sponsor their retirement plans by opening solo 401(k)s or SEP IRAs are in luck because they can include investments such as Bitcoin in their plans. Solo plans are not subject to ERISA rules, hence investors can benefit from investing in assets such as Bitcoin, provided the plan documents have this provision.

Can one open a Bitcoin IRA instead?

If your current retirement investment plan does not allow you to invest in Bitcoin, they have the option to roll over the funds in their IRA to a Bitcoin IRA or to open a Bitcoin IRA and fund it using funds from other sources.

A Bitcoin IRA is essentially a self-directed IRA (SDIRA) that allows you to hold in alternative assets such as cryptos. With an SDIRA, you can invest in a wide range of other alternative assets, including:

Under the umbrella of a self-directed IRA, you can purchase a wide range of alternative assets, as you try to diversify your retirement investment portfolio. You may, however, have to be very strategic about asset allocation, since most of the alternative assets (besides gold) increase your risk exposure.

Generally, most traditional IRAs do not allow investors to place IRS-approved alternative assets since their objective is to earn fees through traditional investments. SDIRAs resulted from the need to present alternative options to investors who’d like to earn money without tying themselves down to a limited number of traditional assets.

>>See Our Top-Recommended Bitcoin IRAs here<<

How does a Bitcoin IRA work?

In general, a Bitcoin IRA works just like the normal IRA, with the only difference being that one invests their money in Bitcoin (and other allowed cryptos), instead of stocks and mutual funds. One can choose between traditional and Roth SDIRAs, in a bid to maximize the tax advantages that come with each. Every investor is, however, expected to contribute the same amount, regardless of the type of IRA that they chose.

If you’re a self-employed investor, or you’re a small business owner, you can open a SEP and SIMPLE IRA and solo 401(k) instead, though they have substantially higher contribution limits. If you find that an SDIRA is more appealing to you, you can still roll over your funds in your solo IRA to the SDIRA.

While self-directed IRAs are to a great extent similar to normal IRAs, they are different in a couple of ways. With a Bitcoin IRA, for instance, you will need to follow up more on the account opening process by yourself, unlike with traditional accounts where brokerage firms do most of the work for you. when opening your Bitcoin IRA, you will have to consider these key components:

  • An IRA custodian is supposed to hold your IRA to ensure that your account sticks to all the set regulations (all rules from the IRS and the government). Banks and other financial institutions play this role with regular IRAs.
  • A crypto exchange through which you’ll manage your trades. It is similar to the popular stock markets. This is the place you will purchase your cryptocurrencies (Bitcoin, Ethereum, etc.)
  • Secure storage solution to protect your digital coins. Most Bitcoin IRA providers usually include proprietary secure storage methods that enable you to keep digital coins safe from scammers and thieves when you buy them.

Why do investors open Bitcoin IRAs?

You might be wondering why it is worth thinking about Bitcoin and opening an account with a reliable Bitcoin IRA service provider. Well, most of the investors who currently own a Bitcoin IRA have opened one due to the following reasons:

  1. Diversification

Cryptos are not correlated with traditional paper assets such as stocks and bonds, which most people have in their retirement investment accounts. Owning Bitcoin helps protect you from potential losses in the event of an economic downturn, as much as cryptos are volatile in their own way.

  1. Potential for high returns

Crypto prices are quite erratic, but they also have the potential for very massive gains. For instance, Bitcoin was at around $5000 in March 2020 and ended that year with its value well past $30,000. Ethereum, which is the second most popular cryptocurrency has its value shoot by about 400% in 2020 alone. By investing a small percentage of cryptos in your IRA, therefore, you can benefit from the massive gains if the value of your tokens goes in the right direction.

  1. Tax benefits

The major headache for Bitcoin investors is usually tracking trades since they have to calculate taxes each time they sell cryptos at a profit. Opening a traditional or Roth IRA (Self-directed one), will take away this burden because you’re not taxed as long as the funds are in your account.

See Gold Retired’s Top-Recommended Bitcoin IRA

OR

See Gold Retired’s Top-Recommended Gold and Silver IRA

That will be all for this article in which we have addressed the question “Can I buy Bitcoin in an IRA?”. I hope you found it beneficial, and that you have an idea of what it entails to own Bitcoin through an IRA. If you have any questions about this topic, let me know in the comments section so that I can reply back to you ASAP.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

How Do I Invest In Bitcoin With My 401k? | Your Top Options

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How do I invest in Bitcoin with my 401k?

How do I invest in Bitcoin with my 401k? Does my employer allow me to do that? How can I make sure that I carry out this process smoothly? Are there some things that I should take into consideration as I go about the process? Welcome to this article in which I will be sharing information that will help you get answers to the above questions. Let’s get right into it.

P.S:

See my top-5 recommended bitcoin IRA companies

The growth potential of Bitcoin

If you had invested about $5000 into Bitcoin in 2010, you’d currently be living a lavish lifestyle. Back then, not many people would have wanted anything to do with investing in an unknown currency. We have come a long way from those days to the present-day world in which most people would gladly accept any bitcoin given to them for free, or for a low price. Why is this the case? If the crypto-bulls we have had are to go by, then Bitcoin is one of the most promising assets that one can own.

Several speculative investors have asserted that Bitcoin will, in the future cross the $100,000 mark. This information in itself has led to many people suggesting that Bitcoin be accepted as an asset that can be used for retirement investment.

A significant number of widely recognized companies have already started accepting Bitcoin payments (as well as other cryptos), and this is just an example of how Bitcoin is gradually being assimilated into our daily life. Just like the internet in its early days, cryptos have encountered their fair share of skepticism, but that has not prevented them from taking their place in our lives. We are in a digital era and cryptocurrencies are at the top of the list of the digital money transaction methods we have in this world. It is due to such reasons that more people are beginning to take interest in investing in or simply owning Bitcoin.

How can you use your retirement savings to invest in Bitcoin?

If you have collected information from credible sources, and have decided that you include Bitcoin in your retirement investment portfolio, then it is highly likely that you can do so with the funds in your 401(k). If your current employer offers special IRAs known as self-directed 401(k), you may be able to purchase cryptos directly through the account. This is something that you will need to confirm with your Human Resource department, to check if this is an option at your company. If it is not available at the moment, you can discuss the possibility of making it available to the employees who are interested.

You can also decide to open a self-directed account on your own. It is similar to the regular IRAs, with the only difference being that it helps you to invest in asset classes that are otherwise not allowed in regular IRAs, including Bitcoin. Self-Directed IRAs are not as common as Roth IRAs or Traditional IRAs, so you have to do some extensive research about which brokers in the retirement investment industry are currently offering them.

While at it, you should check out the allowed investment options, just to confirm that Bitcoin is allowed. Not all self-directed IRAs support the same categories of asset classes and investment choices, so you don’t want to go through the hassle of opening one only to discover that it isn’t what you were looking for.

>>>Top-recommended Bitcoin IRAs that you can rely on to invest for your retirement years <<

Allocation of Bitcoin to your portfolio

The one thing you should know is that investing in Bitcoin or any other crypto is a risky venture. Regardless of what you’ll hear from any financial guru, you should know that the value of these digital currencies can shoot in any direction, so you should be fully capable of stomaching any loss, without your entire investment portfolio being jeopardized. There is no defined percentage of your retirement investment portfolio that should be solely allocated to cryptos, but as a rule of thumb, you should keep it at about 10%.

If you’re nearing your retirement years, you should keep the risk at a minimal but keeping the percentage of Bitcoin invested in your portfolio lower. 0% will, of course, not give you any returns. What you essentially want to do is to ensure that you have an amount of money allocated to Bitcoin, in such a manner that if it hits the $100,000 mark, then you’ll have gained a significant amount of profit. Isn’t that what retirement investment is all about?

You do not need to utilize complex analysis tools to see how Bitcoin has performed over the years. A glance at its historical price chart will show you all that you need to see as an investor and will inform your decision as you head to the retirement years.

Other investment approaches

There are, of course, some other approaches through which you can invest your money in Bitcoin. Some of them are less risky, such as cryptocurrency stocks. There are already some well-established companies in this industry whose stocks are bound to increase in value if all cryptos eventually become a mainstream currency. An index fund that has crypto stocks is also a good option. These are options that you can take up if you want to play safe, but you may end up exposing yourself to other market forces, regardless of how impressively Bitcoin is performing (e.g. poor performance of the company that’s offering the stocks).

Generally, I think retirement savings are meant to be someone’s financial lifeline in their retirement years, hence should not be gambled with. It is possible to invest in Bitcoin with the savings in your 401(k), but you will need to choose the right company to open your SDIRA with, for a start. If you finally settle on adding Bitcoin to your retirement investment portfolio, ensure that you’re diversified into several other stable assets, so that you can shield your nest egg from the volatility of cryptos.

See Gold Retired’s Top-Recommended Bitcoin IRA

OR

See Gold Retired’s Top-Recommended Gold and Silver IRAs

Thank you for making it to the end of this article in which I was providing a response to the question “How do I invest in bitcoin with my 401k”. I hope you found the article helpful, and that you’ll move forward better equipped to make your decision on whether to purchase Bitcoin for your retirement investment account. Let me know if you have any more questions about this topic – drop them in the comments section so that I can respond to them ASAP.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

Can I Roll My IRA Into Cryptocurrency? Top Reasons To Do It!

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Can I roll my IRA into cryptocurrency?

Can I roll my IRA into cryptocurrency? If yes, should I do it? These are some of the common questions that those who are headed to their retirement years or would like to invest to have a better financial future are bound to ask themselves. Whereas we are still gradually learning about the rules and regulations that pertain to Bitcoin investments, there’s already enough information to help you proceed on the matter of rolling your IRA into cryptocurrency. If you need to find out how you can do that, then all you need to do is read on.

P.S.

See my top recommended Bitcoin & Cryptocurrency IRAs

Many aspiring investors have heard that if they have access to a 401(k) plan, or can open one, then they use it maximally, or should be mindful of how they spend their money so that they can put their savings into one in the future. Such pieces of advice, however helpful, are just the tip of the iceberg when it comes to investing in a bid to get long-term retirement security.

The retirement investment sector is evolving rapidly, to accommodate new types of assets, which have proven useful to investors from all walks. Besides the paper assets that have for a long time dominated retirement investment accounts, we are at that time of the century in which people are opting to diversify their portfolios with alternative assets such as gold, real estate, promissory notes, and cryptocurrencies.

If you have decided that you want to invest in alternative assets, specifically Bitcoin, you can actually get started in a couple of easy steps. Investing in Bitcoin will despite being riskier, present you with more rewards. The price movement of Bitcoin over the last decade has been quite impressive, and it has remained unmatched, in comparison to all the assets that have been in existence before it.

So to answer your question as we proceed with the article, yes! You can roll your IRA into cryptocurrency. There are some details that you will however need to consider before taking this step. For starters, you will need to open a self-directed IRA through a reliable IRA service provider. Now, if you have not come across SDIRAs, they are quite popular for the manner in which they can allow you to allows a larger variety of asset classes that come with extraordinary growth potential.

Reasons to roll your IRA savings into cryptocurrency

Many other investors are already rolling their IRA savings into Bitcoin, for the following reasons:

  1. The chance to catch the wave / the disruptive innovation

One of the things that have given Bitcoin and most other cryptos their reputation on a global scope is their disruptive nature. These digital currencies are here to shake up the banking system as we know it. For years, we have relied on centralized banking systems that have taken away the power from the people. There are many benefits to having a decentralized banking system, which can all be experienced through the use of cryptocurrencies. Investors are purchasing cryptocurrencies in a bid to reap the investment advantages that come from the maturation of the new system of banking (along with the potential growth of the value of cryptocurrencies).

  1. Diversification

When it comes to retirement investments (or any other types of investments for that matter), experts recommend that you do not put all your eggs in one basket. By tapping into this new asset class, you can protect your portfolio from decreasing in value in the event of a global economic crisis.

**Diversify your retirement investment portfolio today – top crypto IRAs you can choose from

  1. Protection from inflation

Some digital currencies such as Bitcoin were created to have a defined limit on the number of tokens that can be in circulation at a particular time. Such cryptocurrencies actually become harder to get as time goes by, even as their supply in the market increases. This is referred to as adaptive scaling. Paper currency is on the other hand quite easy to get since it can be printed on demand. With a Bitcoin IRA, you can, as such, hedge your portfolio against the inflationary forces of the market.

  1. Hedging your retirement investment portfolio from a “stock bubble”

After about half a decade to one decade, the market price usually corrects for all overvalued stocks. If you’ve not placed your money in the right places, you will suffer the consequences in the form of your retirement savings being turned to rubble. One of the things that you can do to avoid such a scenario is to roll some of your IRA funds into a Bitcoin IRA. This is something that other professional investors are already doing, hence is worth considering.

  1. Shield yourself from the central bank policies

Cryptocurrencies such as Bitcoin are not dependent on the performance of the central bank. As we already highlighted, cryptocurrencies are decentralized, hence there’s no one single body that is controlling the flow of money. This means that you can invest without your retirement funds being manipulated or affected by policies passed by the central bank. Bitcoin investments are safe from the government and the banks.

  1. Tax benefits

The IRS Notice 2014-21 stipulates that digital currency such as bitcoin is personal property. With that regard, the gains that one accumulates through investing in Bitcoin can be retained tax-free, until one takes a distribution. Besides, any investors who purchase bitcoin for their IRA and sell it later without taking the funds away from their account can reinvest their capital into other IRA-eligible assets and still access all tax-deferred benefits. You can, as such, purchase  the following assets using the money from the sale of Bitcoin, at a later date:

  • Stocksrecommended
  • Bonds
  • Mutual funds
  • ETFs
  • Precious metals
  • Private equity
  • Real estate etc.

As you can see, you can have a lot of fun moving around your retirement funds without many restrictions. Since you will be managing your assets through a self-directed IRA, you will be the shot caller and will have the liberty to make the investment decisions you know will benefit you the most.

These are just some of the top reasons why should consider investing in Bitcoin through a Bitcoin IRA. You can start by checking out my recommended companies, below, to roll over a portion of your retirement investment funds into a Bitcoin IRA

==> See Gold Retired’s Top-Recommended Bitcoin IRAs

or

==> See Gold Retired’s Top-Recommended Gold and Silver IRAs

Thank you for making it to the end of this article that has addressed the question, “can I roll my IRA into cryptocurrency”. I hope it provided you with enough insights to make the right decisions and to get started. Let me know if you have any more questions or concerns about this topic so that I can address them right away – drop your questions or remarks in the comments section.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

How Do I Invest In a Cryptocurrency IRA? Is It Worth Doing?

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How Do I Invest In A Cryptocurrency IRA?

How do I invest in a cryptocurrency IRA? Is it a worthwhile investment? Are there any special rules, regulations, or policies that I need to know about before I get started? If you have been asking yourself such questions and have landed on this article today, then you are in the right place because I will be presenting information that will give you a clear picture of what crypto IRAs are all about. If that sounds good to you, read on to find out.

P.S:

See my top recommended cryptocurrency IRAs

What is a Cryptocurrency / Bitcoin IRA?

A Bitcoin IRA is essentially a self-directed IRA that allows you to invest in cryptocurrencies such as Bitcoin. Self-directed IRAs are special types of IRAs that allow an investor to hold assets that they would otherwise not be allowed to hold in their regular IRA. Most of the alternative assets that you can hold in a self-directed IRA present special advantages, and this makes them worth considering. Assets like gold and cryptocurrencies that you can hold in your SDIRA can help you diversify your investment portfolio for instance so that you do not lose your retirement savings due to an economic downturn.

If you search “Bitcoin IRA”, you will realize that there’s a platform that already owns this trademark, but that does not imply that the platform is the only one capable of providing the crypto IRA services. There are many other companies out there that can help you achieve this objective, though I’d highly recommend that you only work with the best company (upon having done enough research).

According to the rules laid out by the IRS, you cannot simply transfer the cryptos you own into a self-directed IRA. You will need to fund your account using U.S. dollars so that you can then purchase Bitcoin.

Your SDIRA can either be a Roth IRA, or a Traditional IRA. There are usually some IRA contribution limits that are announced by the IRS every year. In 2021, for instance, the contribution limits for an IRA are $6000 for those who are aged below 50 and $7000 for those who are aged 50 or older.

When does a Bitcoin/ cryptocurrency IRA make sense/is worth opening?

For starters, investing in Bitcoin in your IRA or through any other platform only makes sense if you’ve done your research and you’ve established that you can stomach the risks and volatility. Whereas Bitcoin prices have the potential to skyrocket, they can also come down within no time, and if you do not have the fortitude to go through massive swings then cryptocurrencies may not be the best for you. Long-term investors have, however, established that short-term volatility does not necessarily mean that one is not going to make any gains eventually- surprisingly, those who purchase cryptos and hodl them get rewarded handsomely.

Another thing to consider would be that your entire portfolio should not comprise one asset. If you already have Bitcoin in other platforms (such as a crypto wallet), it may not be necessary to hold more tokens in your IRA, since only about 10% of your wealth holdings should comprise a single asset.

If you’re getting closer to your retirement years, investing in Bitcoin may not be the best thing. In such a case, retirement investment advisors usually advise that you invest in more stable assets such as gold or silver. That said, however, you can still allocate a small portion of your funds to cryptocurrencies, owing to their potential for growth. Investors who purchased Bitcoin in 2016, when its price was about $5000, are still reaping massively, at a time when the price is well above $40,000 in 2021. As much as investing in very volatile assets as you get closer to your investment years is not highly recommended, it can at times be the difference-maker in your retirement investment portfolio.

Those who have so far followed all rules set by the IRS on IRA investments, and have purchased and held Bitcoin in their accounts for several years have benefitted significantly, so can you, but you should only do this after talking to a cryptocurrency IRA expert.

Check out these recommended crypto IRAs for help with crypto investments

How to invest in cryptocurrency in a self-directed IRA

If you have decided that you will invest in cryptos using a self-directed IRA, then you have two ways to go about it. They are:

  1. Invest directly using your IRA

You can create a trading profile using the name of your IRA. As long as the crypto exchange platform accepts deposits from your custodian, you are good to go and can invest in cryptos.

  1. Create a Checkbook IRA

The second alternative that you have is to set up your single-member LLC, which will bear the name of your IRA. Such a structure is usually referred to as a checkbook IRA. With your LLC, you can channel investments in any cryptocurrency platform that you choose. LLCs are usually an easy way to invest in cryptocurrencies. They give you the liberty to transfer money to and from your trading account. Such an investment structure lets you trade crypto 24/7. Ensure that the trading account is a newly created entity that belongs to your IRA.

Some rules for crypto investments made through an IRA

There are a couple of rules that you must uphold if you’re getting started with crypto IRA investments. they include:

  • You cannot purchase Bitcoin personally then sell it to your IRA
  • The crypto exchange platform you chose must meet the rules and regulations set by the IRS.
  • All cryptos are considered personal property by the IRS and are taxed as such.
  • Holding digital currencies in an IRA presents tax advantages that are similar to those presented by other IRA investments.
  • When investing in crypto through an IRA, then your non-bank custodian should hold your cold wallet (in which the cryptos are stored).

Investors who can uphold these rules and regulations are ready to purchase several cryptocurrency tokens can reach out to the companies recommended below:

==> See Gold Retired’s Top-Recommended Bitcoin IRAs

or

==> See Gold Retired’s Top-Recommended Gold and Silver IRAs

That will be all for today’s article, which was aimed at answering the question “How do I invest in a cryptocurrency IRA?” Hopefully, you know what you will need to get started. If you’re still not sure what investing in cryptos using an IRA entails, reach out to me and I will offer a few tips on how to go about it. You can also share your experiences in the comments section below.

I wish you well,

Eric, Investor and Team Member at Gold Retired!