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Why We’re Sweet on Crypto IRAs

Cartoon people in an urban setting surrounded by logos of popular cryptocurrencies

Valentine’s day is upon us, and with tax season in full swing, we heart the opportunity to explore the advantages of crypto IRAs for retirement, to build nest eggs for what, and who, we love most.  As a modern investor, you may be sweet on adding digital assets to your retirement portfolio, and there are several ways in which crypto investing decisions can affect or improve your personal, love, and family life. Investing in crypto via a self-directed IRA brings together the best of old and new, maximizes efficiency and peace of mind, can secure your financial future, and allows you to focus on loved ones, or that special someone, rather than endless tokenomics and charts.

Best of Old and New Loves: Gain the Perks of IRAs and Crypto 

Certain components of cryptocurrency can be confusing, if not intimidating, to those from the traditional investing world. In particular, this can be woefully apparent when attempting to understand blockchains, consensus methods, complicated game theory, or DeFi protocols. Can significant exposure to this asset class be achieved without massive time investment, or it becoming a second job? Thankfully, the answer is yes.

Crypto IRAs allow you to invest within a time-tested, insured*, and reliable retirement vehicle, while still reaping crypto benefits like decentralization and the potential for outsized returns. Investors can learn the basics of the coins and tokens available, then invest in one, or multiple digital assets of their choosing. Like with any retirement account, consistent and regular contributions can be made to emulate dollar-cost-averaging, eliminating the need to trade ups and downs or “catch dips,” as regular, consistent investment captures all price levels. Saver IRAs are also available to automate crypto investing.  are also available to automate crypto investing.

While many are passionate about crypto, many would much rather direct their time and energy to their significant others and loved ones. Crypto IRAs enable both!

Expedite a Better Future With Crypto Investing

Despite crypto winters, there’s little denying that tremendous price performance and return on investment (amid volatility) are a predominant part of what make crypto assets immensely popular.

For older investors, the benefits of a crypto IRA are thus twofold. For one, a trusted platform like BitcoinIRA stores your assets with a qualified custodian to ensure maximum peace of mind, something too-often missing from riskier crypto plays as digital currencies mature through their “wild west” phase. At the same time, the unprecedented performance of crypto (as demonstrated by Bitcoin’s rise, among others) means that it’s never too late to start saving for retirement and prioritize those you love.

In the 2018 bear market, Bitcoin’s price bottomed below $3,200. In the 2021 bull run, its price topped out at $68,000! Capturing such strong price performance (over a 20x gain on investment from bottom prices) arguably transforms approaches to retirement, allowing latecomers to still prosper, or those on-track to reach their goals sooner.

On the other hand, research has shown that the primary reasons millennials have shied away from marriage and starting a family more so than past generations are economic. Once again, crypto IRAs can help. Bitcoin was designed to combat the issues of the 2008 financial crisis and beyond, including inflation and falling purchasing power. Allocating a certain (or aggressive, if you’re younger or a latecomer) percentage of retirement investment to crypto has the potential to keep ambitious retirement goals alive, even during tough times. 

Tax Advantaged Retirement Accounts 

It’s safe to say there’s nothing romantic about taxes. When investing in crypto via self-custody, or even on centralized exchanges, individuals must manually track their gains and losses in order to correctly file tax returns when the time comes to swap or cash out. 

Rather than be mired in records and paperwork on Valentine’s Day ahead of tax season, a crypto IRA keeps things straightforward and simple. Taxes are typically owed on income rather than capital gains, either via already-taxed money used to invest (Roth IRA), or at the time of retirement on distributions (Traditional IRA). For more on this, take a look at our guide to crypto taxes in retirement accounts. 

Though crypto can be highly exciting, engaging, and even addicting, it’s important to remember some of the core goals of saving for retirement. For many, spending more time with loved ones ranks number one atop that list. The power of crypto and the flexibility of IRAs have the potential to realize, and even quicken, this objective. Which is why not just on Valentine’s Day, but all year long, we’re sweet on crypto IRAs.  

*Insurance may vary based on asset chosen and custody solution available.

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