Investing Bitcoin with a Bitcoin IRA has many advantages, including tax-saving benefits, 24/7 trading, and diversification.
Investing in Bitcoin with a Bitcoin IRA allows you to put a piece of the original cryptocurrency into your retirement portfolio with tax-saving benefits and 24/7 trading. By understanding more about Bitcoin, investors are better armed with the knowledge to make choices and trade within their crypto IRAs.
Bitcoin (BTC) is the grandfather of all cryptocurrencies. It was created by someone that mysteriously called themselves Satoshi Nakamoto in 2009—almost 20 years after blockchain timestamping was first presented as a research project. BTC is the first decentralized currency in which the need for trusted third-party verification has been removed.
There is a famous story about a BTC miner that used 10,000 BTC to buy $30 worth of pizza in 2010. Which, even at the discounted price today, would be worth about $200 million. All in all, BTC is the most trusted and well-known cryptocurrency available on the market today.
Despite Ethereum’s (ETH) utility, BTC has remained more popular and retained a higher market cap or value than ETH. Ethereum is also a blockchain-based cryptocurrency, though the primary difference is that the blockchain is constructed a bit differently.
The ETH blockchain can support smart contracts and uses staking protocols that generally require less electricity to mine and transact. Its ability to support smart contracts allows developers to build projects off the back of the ETH blockchain, which has led to the proliferation of decentralized finance (DeFi). ETH is trusted similarly to BTC, but its exposure to the wild west of DeFi could put the cryptocurrency at risk. Therefore, tracking BTC fundamentals, sentiment, and price fluctuations can be much easier than ETH.
Bitcoin IRA provides secure1 access to BTC, letting you buy, sell, and swap bitcoin in a cryptocurrency IRA. You can also purchase BTC through several other exchanges. Because BTC is the most well-known cryptocurrency on the market, it’s always a good idea to keep an eye out for scams.
Always use trusted exchanges and wallet providers like Bitcoin IRA when investing. To use Bitcoin IRA to buy BTC, simply create an account, fund it, and trade.
Cryptocurrency can be held or traded in a self-directed IRA. You can open a Roth or traditional self-directed IRA. With a self-directed Roth IRA, you contribute after-tax dollars into the IRA account and then aren’t required to pay taxes when you reach retirement age.2 With a traditional self-directed IRA, income tax is paid after you reach retirement age and when the money is withdrawn.
Both types of IRAs offer tax-deferred growth. However, as with any IRA account, if you choose to withdraw before reaching retirement age, you could face paying a penalty and any taxes you owe. This situation is the same for all types of investments held in IRA accounts.
Once you understand more about Bitcoin, you see how many may view it as a great investment opportunity because of its unique position of being the first widely-adopted cryptocurrency in the world.
The vast investment in BTC also makes it a trendy way to keep a finger on the pulse of the general cryptocurrency markets. Buying BTC in small tranches after pullbacks using Bitcoin IRA’s simplified buying and selling processes is one strategy that some investors choose. Bitcoin IRA’s intuitive platform and easy account creation make a long-term Bitcoin investment easily accessible.
Bitcoin IRA also offers more than 60 different cryptocurrencies to choose from, allowing you to diversify your holdings as you add money to the account. In addition, Bitcoin IRA provides investors with education about each coin and is constantly searching for new opportunities to add to their coin selection.
A Bitcoin IRA account can be opened online or through the convenient mobile app (on the App Store or Google Play). After opening an account, you will be asked if you want to roll an existing IRA or fund your new IRA from scratch. Once the account is funded, you can start trading BTC.
1Security may vary based on asset chosen and custody solution available.
2Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.