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Can You Roll Over Your 401(k) to Bitcoin IRA?

As crypto continues to evolve, many investors are interested in adding digital assets to their retirement portfolios. That leads to an important question: “Can I invest my 401(k) in Bitcoin?”

The answer is yes, you can roll over your 401(k) to Bitcoin – specifically, to an account at Bitcoin IRA – where you can invest in Bitcoin and many other cryptocurrencies. 

Doing so lets you enjoy the growth potential of cryptocurrency inside a tax-advantaged retirement account. However, you’ll want to choose your account (and your  crypto choices) carefully.

Can I Invest My 401(k) in Bitcoin?

Yes, you can! There are multiple ways to add Bitcoin to your retirement portfolio. One common way is to rollover your 401(k) into a cryptocurrency IRA with Bitcoin IRA. 

Bitcoin IRA lets you open a crypto IRA, a tax-advantaged retirement account that allows  you to add alternative assets to your retirement portfolio. Aside from the usual stocks and bonds, these IRAs offer exposure to crypto assets. 

Reasons to Invest Your 401(k) at Bitcoin IRA

You’ll find several good reasons to move your 401(k) into cryptocurrency. From unprecedented ease and flexibility to military-grade security1, here’s what to know. 

Growth Potential

Cryptocurrencies are a disruptive innovation – that is, they could dramatically change the financial industry. 

While crypto has already seen fantastic growth during its existence, there’s still plenty of time for future growth. Adding crypto to your retirement portfolio could help you secure your wealth on the back of the next Bitcoin boom. 

Tax Advantages

You probably know that a Traditional 401(k) lets you defer your tax bill until retirement age. But Roth IRAs let you pay taxes now, then enjoy tax-free distributions  at retirement age. 

During that time, you can trade crypto in your account without paying taxes now – or potentially ever. Assuming you make qualified withdrawals in the right kind of account, that’s a hefty lifetime tax payment dramatically reduced. Not to mention that you won’t owe capital gains taxes on crypto retirement accounts.

Diversification

Rolling over part or all of your 401(k) to Bitcoin IRA is a great way to diversify your existing investments. Because crypto values aren’t affected by regular financial factors (such as company earnings), they can offer growth potential when other assets sink. 

Better yet, Bitcoin IRA offers over 60 cryptocurrencies, so you have plenty of choices  for diversification among individual currencies. 

Education Resources

Bitcoin IRA offers tons of online resources to help you on your investment journey. From the basics of cryptocurrency to why Bitcoin can boost your retirement potential, there are plenty of articles to keep you in the know.  

Insurance

Bitcoin IRA offers up to $700 million in custody insurance for select cryptocurrency holdings through a partnership with BitGo

Specifically, insurance is offered via BitGo’s insurance provider, Lloyd’s of London, the world’s premier insurance and reinsurance market. 

That’s added protection for your holdings against theft or blockchain breaches that could disrupt your investment progress. 

Security

Bitcoin IRA takes crypto security1 seriously. Most digital assets with Bitcoin IRA are stored with BitGo, the world’s largest Bitcoin transaction processor. BitGo relies on military-grade security1 measures and cold wallet1 (offline) storage to protect your assets. No other crypto IRA provider matches their level of protection. 

Ease of Use

Investing with Bitcoin IRA is simple and fun. After you complete a quick signup, you can fund your account and then easily self-trade or swap assets 24/7 online. You can also  access your account via the app. Plus, you’ll receive all the financial statements you need to satisfy Uncle Sam during tax time.

How to Roll Over Your 401(k) into Bitcoin IRA

Bitcoin IRA offers several ways to get investors started with a self-directed crypto IRA. Clients can choose to roll over from SEP, SIMPLE, IRA, 401(k) and other qualified accounts. Plus, you can start a brand-new IRA with no rollover required. 

Here’s how to get started, whether you prefer to roll over your 401(k) to Bitcoin IRA or fund your account with new contributions.

Step 1: Create Your Account

The first step is to create your Bitcoin IRA account. The application is quick and easy – generally, it takes just three minutes to fill out. Upon opening your account, you can access your customized dashboard to start on the next steps. 

Step 2: Fund Your Account

The next step is to fund your account to start trading assets. You have two basic choices:

  1.   Funding your account via direct deposit
  2.   Rolling over your 401(k) or another retirement account to Bitcoin IRA

Bitcoin IRA makes this process easy. Designate how much you want to invest and where the money is coming from, then fill out your profile information. Generally, accounts are ready to trade just 3 to 5 business days after a transfer is requested from your old retirement account. 

Step 3: Start Trading

After your account is funded, you can start trading digital assets using Bitcoin IRA’s proprietary platform. With an internet-connected device, you can buy, sell or swap anytime, anywhere right from your Bitcoin IRA dashboard. 

Step 4: Prepare for Tax Payments

Depending on how you fund your account, you may need to pay taxes now or later. 

For instance, rolling funds into a traditional crypto IRA won’t incur taxes now, but you’ll have to pay taxes on distributions taken at retirement age. The same goes for funds you contribute after the rollover. 

On the other hand, a Roth crypto IRA conversion may incur taxes during conversion, but all eligible distributions taken at retirement age will be tax-free.

Rolling Over Your 401(k) to Bitcoin IRA Shouldn’t be a Hassle

Bitcoin IRA believes that adding cryptocurrency to your retirement plan shouldn’t be a hassle. Fortunately, the  proprietary platform makes the transition fast, simple and painless.

 

Frequently Asked Questions

 

Q: Can you roll over a 401(k) to a crypto IRA?

A: Yes, you can, using several methods – a 401(k) rollover is just one way to start with Bitcoin IRA. 

Q: Do I have to cash out my 401(k) to buy a crypto IRA?

A: You can avoid cashing out your 401(k) by initiating a rollover to a Bitcoin IRA account. Adding crypto to your portfolio provides diversification and growth potential to your portfolio. Because of the high volatility of cryptocurrency, it may be not be prudent to invest all of your 401(k) in assets in this sector.  Rather, you might consider rolling over a portion of your retirement account into crypto. 

Q: Is a crypto IRA a good idea?

A: Investing in crypto carries high risks – and the potential for high rewards. While a crypto IRA can be a good idea for long-term, growth-oriented investors, it’s also important to know your financial limits and level of risk tolerance. 

 

You might be also interested in: How to Choose the Best Bitcoin IRA Platform for Your Investment Needs

 

 

1Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.

Alternative IRA Services, LLC dba Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed purchases processed through Bitcoin IRA have not been endorsed by the IRS or any government or regulatory agency. Bitcoin IRA is not an adviser. Information contained on this website is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you. Cryptocurrencies are very speculative and involve a high degree of risk. By using the website, you understand the information being presented is provided for informational purposes only and agree to comply with our Terms of Use and Privacy Policy.

A digital key points to a shield protecting a Bitcoin coin.

How to Choose a Secure Crypto Custodian

The Keys to Secure Crypto Custody

In light of recent cryptocurrency events including the FTX bankruptcy, many crypto traders are asking how to find a secure crypto custody solution. Cryptocurrency security is especially important for long-term crypto investors who seek to protect their hard-earned nest eggs for their golden years.

Whether you’re a trader, investor, or both, we’ve shown how to secure crypto in your retirement account with cold storage wallets, industry-leading custody protection and insurance.1 Now, let’s take a closer look at how to evaluate a custody solution, including selecting a qualified custodian, safe digital wallets, and digital asset insurance.

How to Choose a Qualified Custodian 

Crypto enthusiasts want to secure their crypto with custodians they can trust to keep their digital assets safe. But savvy investors and crypto traders know that not all custody is created equal. A “qualified” custodian isn’t only competent in the generic sense of the word – they also have met stringent standards defined by regulators to protect funds against loss. Qualified custodians are regulated entities that have a fiduciary duty to their clients and hold their funds in segregated accounts. They must pass audits and may also obtain certifications that verify their services.

Key criteria for choosing a custodian include:

  • Qualified custodial services
  • SOC 2 Type 2 certification
  • Trusted across the industry

How to Choose a Safe Digital Wallet 

Another key to secure crypto custody is choosing a technology provider who partners with a custodian that stores your crypto in safe digital wallets. The safest digital wallets are cold-storage wallets. Although hot storage wallets may make funds easily available for quick trades by storing keys online, since the keys are kept over the internet, they can fall prey to thieves.

In contrast, cold-storage wallets store keys offline, creating a barrier for hackers. Cold-storage wallets are ideal for long-term investments, such as retirement savings, because of this extra layer of protection in storing digital assets.

Key criteria for choosing a digital wallet include:

  • Offline, cold-storage
  • Multi-key security
  • Two-way authentication

How to Choose Digital Asset Insurance 

Crypto investors seeking the most secure crypto custody may look for a company that offers digital asset insurance. Not all firms offer this type of insurance, and it may be offered at different levels to protect against theft, loss, or misuse.1

Key criteria for choosing digital asset insurance include:

  • Availability of coverage
  • Amount of coverage
  • Areas of coverage

Secure Crypto Custody for Retirement Investing 

It’s important to make an informed decision when choosing where to invest your crypto. Over 170,000 users trust Bitcoin IRA,2 the world’s first platform for cryptocurrency IRAs. The company offers secure crypto custody,1 empowering you to trade and invest securely for retirement with a user-friendly mobile app and over 60 cryptocurrencies.

Bitcoin IRA partners with US-based firm, BitGo Trust Company, Inc., to seamlessly provide qualified custodial services for crypto IRAs and crypto retirement accounts. BitGo is SOC 2 Type 2 certified to meet strict standards for both information security and data integrity.

Recognized as an industry leader, BitGo was recently selected as the custodian for FTX’s remaining assets while bankruptcy proceedings are underway. In addition, BitGo was also chosen as the official wallet provider for Nike. BitGo is one of the world’s most secure and compliant digital asset custody solutions with a mission to “deliver trust in digital assets.”

Cold-Storage Wallets and Digital Asset Insurance  

Bitcoin IRA also partners with BitGo, the leading cold storage provider, to offer proprietary cold-storage wallets.1 The wallets provide military-grade, multi-key security protecting against any single point of failure. BitGo holds digital assets in qualified custody wallets where the assets are in segregated accounts. Segregated funds are kept separate and not mixed with other funds. While BitGo holds the assets, they cannot be used by BitGo.

Adding to its security features, Bitcoin IRA offers crypto IRAs with industry-leading custody insurance. Assets are insured for up to $700 million with BitGo and their insurance provider Lloyd’s of London, the world’s specialist insurance and reinsurance market.1 BitGo was one of the first companies to secure insurance coverage for digital assets.

Cryptocurrency security is a key priority for crypto traders and investors, and getting started with a trusted provider can offer peace of mind.

1Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.

2Alternative IRA Services, LLC dba Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed purchases processed through Bitcoin IRA have not been endorsed by the IRS or any government or regulatory agency. Bitcoin IRA is not an adviser. Information contained on this website is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you. Cryptocurrencies are very speculative and involve a high degree of risk. By using the website, you understand the information being presented is provided for informational purposes only and agree to comply with our Terms of Use and Privacy Policy.

 

Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-936-7175 or email us today.

Recommended article: How to Secure Crypto in Your Retirement Account

Crypto coins including Bitcoin and Ethereum display in front of a closed padlock

How to Secure Crypto in Your Retirement Account | Bitcoin IRA

Trading and investing securely for retirement is a top concern for crypto investors, especially when they hear that the digital asset ecosystem has been impacted by cybersecurity events. Investors of all levels need to know how to secure crypto in their retirement accounts. It’s important to choose a crypto platform that can keep your savings safe from hackers and thieves.

The security of a cryptocurrency account often depends on how it is stored and the amount of protection behind the chosen storage method. So, how does cryptocurrency security work?

Cryptocurrency Security

Because they are digital assets, investors can’t hold cryptocurrency in their hands as they can stock notes or precious metals—they’re not tangible. In this manner, exchanging cryptocurrencies is similar to using a banking card in which money is electronically spent. On the other hand, unlike a banking card, every bit and byte of cryptocurrency has a ledger that follows it. Spending and exchanging are recorded on the blockchain the crypto was built on, so a permanent history is attached to each asset as it moves from one user to another.

While the transactional log alone does not protect your account from hackers, it may make it more difficult for hackers to steal cryptocurrencies. After reading through stories about cryptocurrency theft, investors may learn that most thefts are inside jobs or due to serious security flaws on the account provider’s side.

How to Secure Your Cryptocurrency

Average cryptocurrency investors may opt for one of two kinds of “wallets” to store their cryptocurrency: a hot wallet or a cold wallet. A hot wallet is connected through a cloud infrastructure online and may require multiple security options through an investor’s chosen portal. A cold wallet is a hardware device that may look similar to a USB drive and stores the cryptocurrency blockchain offline.

These digital wallets are often secured by a password and sometimes two-way authentication. For example, a hot wallet could contain two keys, one private and the other public.

Investors who choose to use hot wallet storage may elect to utilize the public key to put funds into the wallet and then the private key to spend the cryptocurrency. Using an offline storage method gives investors complete control of when others access the keys. While there may not be a single, most-secure cryptocurrency, online account providers have a variety of ways to protect private keys.

To keep your wallet safe, choose an account provider that offers:

  • A cold storage wallet
  • Enhanced private key storage
  • Two-way authentication

Some investors may decide to make a backup of a private key in case it gets lost.

How to Secure Cryptocurrency in an IRA

Investors who elect to invest in cryptocurrency in their IRA accounts may still need to select a hot or cold wallet. Unlike traditional crypto investors, retirement fund cryptocurrency investors do so through a custodian. The custodian may help you choose between hot and cold wallet options.

Other ways to keep your wallet safe include:

Safely Investing Retirement Funds in Crypto

Bitcoin IRA is the first and leading self-directed IRA platform that provides users with the opportunity to invest in over 60 different cryptocurrencies across all 50 states. Available via a web browser and a convenient and user-friendly mobile app, the Bitcoin IRA platform connects users with a qualified custodian, digital wallets and cryptocurrency exchanges. Offering world-class security1 with 100% offline, cold storage and multi-signature wallets, Bitcoin IRA is seen as a safe choice by over 170,000 users.

Bitcoin IRA carefully chooses cryptocurrency assets before offering them to customers and utilizes some of today’s safest wallets. Digital assets are securely stored with BitGo along with industry-leading custody protection and insurance.1

Experience the Bitcoin IRA2 difference for yourself when it comes to diversifying your retirement holdings.

Get Started today.

1Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.

2 Alternative IRA Services, LLC dba Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed purchases processed through Bitcoin IRA have not been endorsed by the IRS or any government or regulatory agency. Bitcoin IRA is not an adviser. Information contained on this website is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you. Cryptocurrencies are very speculative and involve a high degree of risk. By using the website, you understand the information being presented is provided for informational purposes only and agree to comply with our Terms of Use and Privacy Policy.

 

Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-936-7175 or email us today.

Recommended article: Crypto: To Invest or Not to Invest

Investor's Guide to Different Cryptocurrency Types | Bitcoin IRA

Guide to Different Cryptocurrency Types | Bitcoin IRA

Investors who are ready to try cryptocurrency investing often learn that the goals accomplished by different cryptocurrencies tend to vary. Just like companies from various industries that issue stock shares, each crypto has specific attributes that define its overarching mission (and particular use cases) as well as allow it to contribute to the world of cryptocurrency in a myriad of ways.

To date, there are more than 18,000 cryptocurrencies available for investors, which may seem like an overwhelming number of options to some. In an effort to best serve their users, the team at Bitcoin IRA carefully curated over 60 different cryptocurrencies that are available on their innovative crypto IRA platform.

Similar to sectors of the stock market, investors may consider spreading investments across different cryptocurrency use cases when working to diversify a portfolio. One way to begin is by breaking down cryptocurrencies by type and general use case. There are two main types of cryptocurrency — coins and tokens — with various ways to use them, including as a form of payment or as a service. As more investors continue to consider adding and trading cryptocurrency in their IRAs, it would be a good idea for them to gain a solid understanding of what differentiates cryptocurrencies from one another.

Different Cryptocurrency Types

Coins and tokens are digital assets that can be bought and sold, which tends to make the task of discerning between the two a bit tricky. Cryptocurrency coins are virtual or digital currencies, while tokens are only digital assets. Essentially, a coin acts as a single unit of currency and all transactions, whether to other coins or tokens, are recorded on the blockchain. Coins can sometimes be exchanged for different coins or tokens that come from another blockchain.

Unlike coins, tokens can’t be mined and are often created on third-party blockchains. The value of tokens varies, much like stocks, and tokens can hold different classifications, such as utility tokens or decentralized finance tokens. In addition, tokens can often represent a stake in the company.

Investors may still trade both, providing enough liquidity exists in the market to make the exchange.

Cryptocurrency Use Cases

There is no general rule for the best uses on the various cryptocurrency types. So, to fully understand an investment, some options for investors are to seek out the whitepaper for the crypto project as well as to identify a specific user group who is well versed in its underpinnings.

Payment Cryptocurrencies

Bitcoin, the original cryptocurrency, is a payment cryptocurrency. Payment cryptos are used to make purchases of goods and services that accept crypto. Since Bitcoin, other popular payment cryptocurrencies were developed to speed up transaction times, such as like Litecoin and Ethereum. These cryptocurrencies may also be considered infrastructure cryptocurrencies in that they are the base of the blockchain infrastructure and pay the miners and participants approving transactions.

Financial Cryptocurrencies

Financial cryptocurrencies serve as a conduit for trading other cryptocurrencies. For example, investors may choose to purchase a particular financial cryptocurrency (Augur, for instance) to access other cryptocurrencies or lending strategies.

Another financial cryptocurrency that happens to also double as a service cryptocurrency is Compound. This crypto serves as a frictionless option for investors to use Ethereum-based coins and tokens as collateral for borrowing, lending, and collecting interest. Meanwhile, investors who hold Ether, for instance, have the option to keep a portion of it under the Compound token.

Service Cryptocurrencies

Service cryptocurrencies break the mold a bit in that they are generally token-based and are designed to link records from the real world to the blockchain.. Smart contracts, which are associated with a token and stored on the blockchain, are a standard application in service crypto.

For example, if you have ever bought property or a car, it may be difficult to guarantee the historical chain of past ownership. However, with a smart contract, all transactions are recorded on the blockchain, and they cannot be tampered with, meaning that the chain of ownership will always exist somewhere.

How to Start Investing for Retirement in Cryptocurrencies

Investors seeking to diversify their cryptocurrency investing may do so by utilizing crypto projects that produce different results. It is wise to learn about projects first by reading through published information before deciding which crypto is right you.

Bitcoin IRA* is on a mission to help Americans retire. Their innovative platform equips users with over 60 cryptocurrency options that are available to buy, trade or sell in real-time, 24 hours a day, seven days a week. With over 3,500 5-star reviews and over 100,000 users, their platform helps users can easily diversify their self-directed IRAs with cryptocurrency.

As the most trusted crypto IRA platform, Bitcoin IRA has processed more than $2 billion+ in transactions.. In addition, the platform is the industry’s go-to source for crypto thought leadership and has been featured extensively in the media, with coverage in Forbes, CNBC, Bloomberg, CoinDesk TV, and The Wall Street Journal, among other leading publications and media outlets.

* Alternative IRA Services, LLC dba Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed purchases processed through Bitcoin IRA have not been endorsed by the IRS or any government or regulatory agency. Bitcoin IRA is not an adviser. Information contained on this website is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you. Cryptocurrencies are very speculative and involve a high degree of risk. By using the website, you understand the information being presented is provided for informational purposes only and agree to comply with our Terms of Use and Privacy Policy.

Recommended article: Growing Your Nest Egg with Crypto

Guide to Cryptocurrencies in a Roth IRA | Bitcoin IRA

Guide to Cryptocurrencies in a Roth IRA | Bitcoin IRA

New investors are often curious about the benefits of a Roth IRA vs. a traditional IRA. The most significant difference between the two is how each is taxed.

Investors may make pre-tax contributions to a traditional IRA, and then the money is taxed when it is withdrawn. With a Roth IRA, the money contributed may not be tax-deductible in the contribution year, but it might also not be taxed when it is withdrawn at retirement age. For investors considering long-term cryptocurrency investments, the potential tax benefits make the Roth IRA an attractive option.

So why might investors consider a self-directed Roth IRA?

Overall, Roth IRAs potentially remove or mitigate the risk of a future increase in retirement income taxes. Additionally, assuming that the account grows over time, a Roth IRA holds the possibility of paying fewer taxes on the resulting amount when an investor enters retirement.

Cryptocurrencies in a Roth IRA

To achieve portfolio diversity, you may invest in alternative assets, such as cryptocurrencies within both a Roth or traditional IRA. An option for investors seeking to add digital currency to an IRA would be to consider seeking out an IRA custodian offering alternative investments.

Having a separate account for alternative asset investing may help to diversify a retirement portfolio as a whole. Diversifyingaway from traditional assets, like stocks and bonds, can be important for investors who are looking to prepare for future market adjustments. Investors can use self-directed Roth IRA accounts for many alternative assets, including cryptocurrencies, real estate, and much more.

Investors may choose to roll over portions of existing or entire accounts to an IRA custodian in order to fund a self-directed Roth IRA for cryptocurrency investing. Meanwhile, those without an existing Roth IRA account may also open a self-directed IRA for cryptocurrency with the same custodian and make contributions.

Investing a Roth IRA in Cryptocurrencies

Like any other type of investing, it’s typical for investors to begin by educating themselves about the assortment of cryptocurrency options available. One thing to note would be finding a platform with offerings that cater to the interests of the investor. Bitcoin IRA offers investors more than 60 types of cryptocurrencies to choose from. The more choices available, the easier it is for investors to diversify their portfolio with crypto holdings.

Another route for eager investors to consider could be to divide funds between three of the more popular cryptocurrencies to diversify their entire retirement portfolio. That said, some investors may prefer to deeply research (crypto) projects based on their fundamentals by reading whitepapers, online articles and using social media to learn how other investors rank their prospects.

There is no right or wrong way to go about investing, but it is best to have a strategy that works for you.

Opening a Cryptocurrency Roth IRA

Bitcoin IRA1 offers investors a tax-advantaged2 way to invest in various cryptocurrency assets directly in their self-directed IRAs. Investors can take advantage of the simple process of opening an account. The 24/7 platform can be accessed from mobile devices, allowing for easy trading and management of your Roth IRA.

2Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.

 

Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-936-7175 or email us today.

Recommended article: Why Investors are Banking on Bitcoin Instead of Social Security

Bitcoin IRA | Bitcoin vs Social Security

Why Investors Bank on Bitcoin Instead of Social Security | Bitcoin IRA

Whether you are 30 years away from retirement or three, planning for your senior years was something that the U.S. government thought it could help with.

The Social Security (insurance program) was brought forth by the Social Security Act of 1935 as a general welfare effort to help provide economic security to retired workers and their families. It was in 1940 when Americans began to receive these benefits and the social security system provided retirees with the fixed monthly income that we know of today.

Since then, multiple administrations have engaged in talks about altering or removing the system altogether. Because the future of the social security system is not written in stone, many American workers have taken matters about their retirement income into their own hands by investing in self-directed IRA accounts, managing their own stocks, as well as by contributing to 401(k) and alternative retirement plans.

Investors who were managing their portfolio of stocks and bonds between 2009 and 2019 found that, for the most part, most assets increased in value. Once the economy hit a period of higher inflation, some investors of all ages began considering other asset classes as alternative investments, like cryptocurrency.

Who is Investing in Cryptocurrency

Younger investors (within the Gen Z category) have started seeing long-term benefits when investing in cryptocurrency, expecting to hold it in their portfolio for five or more years. For millennials, 46% surveyed by 2021 Engine Insights report that they believe they can become millionaires by investing in crypto.

And, while Gen Z’ers and millennials are out-buying other generations in crypto investments, Gen X is out-spending by almost $1,000 per year.

While the risks of investing in cryptocurrency include competition, cyberattacks and changing regulations, the potential long-term benefits have, so far, shown promising potential growth for investors.

Using Cryptocurrency in a Retirement Program

By taking advantage of self-directed accounts, some investors may opt into a program that allows them to buy, sell or trade cryptocurrency.

Utilizing a self-directed IRA for your cryptocurrency investment strategy may offer some tax advantages, such as helping you to avoid capital gains taxes by deferring taxes on your crypto investments held in your IRA. For instance, when the price of a cryptocurrency increases by large percentages in a short period, you may be less likely to pay a tax rate of more than 20% on the gains you’ve earned.

Among other benefits of holding and trading cryptocurrency in an IRA account is that it has the predisposition to hedge against inflation, like gold. This is due to the finite or limited supply of Bitcoin and other cryptocurrencies in addition to the fact that crypto isn’t tied to one country’s economy.

When you’re ready to give cryptocurrency investing within your IRA a shot, the key is finding a custodian that offers you alternative investments in addition to that of traditional asset classes that are accessible directly within your IRA.

Adding Bitcoin Investments to your IRA Portfolio

Innovative investment platforms, like Bitcoin IRA, offer users alternative investments as a solution to augment their potential, future social security income.

Bitcoin IRA makes the process simple for one to open a new IRA account and roll over funds from an existing one. Bitcoin IRA helps you to open a tax-advantaged* IRA account that allows you to invest in alternative assets, like cryptocurrencies. The platform can also be accessed on mobile devices, allowing for 24/7 trading and easy access to your IRA dashboard.

*Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.

 

Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-936-7175 or email us today.

Recommended article: Crypto: To Invest or Not to Invest

Bitcoin IRA | Growing Your Nest Egg with Cryptocurrency Investing

Growing Your Nest Egg with Crypto | Bitcoin IRA

With the stock market in a stage that many refer to as a bubble, it can be tough to identify the best ways to diversify your portfolio so that you can grow your nest egg (also known as your retirement account or retirement savings).

When considering to diversify a portfolio with cryptocurrencies, investors may wonder about these types of assets and how they can impact or possibly even benefit an IRA. The good news is that because the IRS views cryptocurrencies as property, crypto investments are available as assets for an IRA, which means that you can easily use crypto to grow your nest egg. The important thing is to find a reliable self-directed IRA custodian that offers cryptocurrency investing. If you’re looking to diversify your IRA portfolio with alternative assets, like cryptocurrencies, this article is for you. Learn more on how to do this below.

How to Invest in Cryptocurrencies

When growing your nest egg, your investment choices may often revolve around the amount of risk you are willing to take. Investors may mitigate risk to maintain a financial plan in several ways, including portfolio diversification. For example, in your current IRA platform, you may be able to purchase Bitcoin or Ether futures. Still, with the wide variety of offerings on the market, you may want to maximize your opportunity to diversify your cryptocurrency holdings between different types of assets.

In some cases, certain cryptocurrencies were developed to solve specific problems. For example, Bitcoin can help people who don’t have access to banks while Litecoin was created to make crypto transactions faster than they were with Bitcoin.

Bitcoin (BTC) is the first established and most well-known cryptocurrency. It engineered the use of blockchain technology that has been adopted as the backbone of new industries. Many other offerings, including Bitcoin Cash, Litecoin, and Dogecoin, use similar but lighter-weight technology, to accomplish similar things as Bitcoin.

Digital coins vary from one another, as they aim to accomplish different objectives. For instance, Internet Computer was designed to improve the internet architecture, and Filecoin seeks to provide a secure web-based data storage solution. So, when investing in cryptocurrencies, it’s wise to research the coins you’re looking to invest in and learn each coin’s objective toward improving specific systems currently in place or current gaps in their space.

You can conduct your technical analysis by reviewing this coin research alongside historical price charts to view how different cryptocurrencies have performed in the past. Then, once you have decided which projects you want to support, investing in cryptocurrency seems likely to be your next step. If you’re ready to get started, find a digital IRA platform that is right for you, open a wallet for your digital currencies and choose the cryptocurrencies you’d like to buy.

It’s important to note that cryptocurrency does not have to be an all-in investment product. Know that you can also purchase portions of coins versus a whole coin. For example, one Bitcoin is trading at around $40,000, but you can buy any amount of your desired crypto that works best for you and your portfolio.

Find an Investment Platform

There are numerous ways to invest in cryptocurrencies. In addition to a regular exchange, many investors are seeking out the potential tax advantages associated with crypto investing in an IRA or even a 401(k). While there are various custodians available, not all of them are structured for users to open IRA accounts to buy or sell crypto. So, if crypto is something you’d be interested in exploring, be sure to look for a custodian that offers this option when preparing to invest your IRA in cryptocurrencies.

For example, Bitcoin IRA offers investors options to open a new retirement account or transfer funds from an existing retirement account, like an IRA, to invest in cryptocurrencies. In addition, our platform can be conveniently accessed via a mobile app as well as through a web experience. In fact, our platform allows you to buy, sell or swap crypto directly in your IRA anytime, wherever it suits you, 24/7. Plus, Bitcoin IRA offers users access to over 60 different types of cryptocurrencies.

Growing Your Nest Egg with Cryptocurrencies

To grow your nest egg by investing your IRA in cryptocurrencies, first, choose and research a credible and secure platform with features that best serve you. Then, educate yourself about the different types of cryptocurrencies available to you and determine which fit best into your risk assessment mix. Next, it’s time to begin investing and once you do, it’s suggested that you assess the performance of your investments as you would any other account.

Bitcoin IRA is an industry-leading Crypto IRA Platform that allows you to invest in tax-sheltered IRA* accounts in assets like cryptocurrencies; check them out today.

 

*Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.

 

Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-947-4125 or email us today.

Recommended article: Crypto: To Invest or Not to Invest

Bitcoin IRA | Crypto: To Invest or Not to Invest

Crypto: To Invest or Not to Invest | Bitcoin IRA

Cryptocurrency investing has become a hot topic over the last five years, and because of how its popularity has risen, long-term investors could worry that cryptocurrency investing may seem like the wild west of finance. One thing we can say is that it’s starting to appear that crypto  is here to stay.

 

What Makes Cryptocurrencies a Good Investment?

First and foremost, cryptocurrencies are starting to gain recognition and acceptance from more people, businesses, and institutions. In addition, central banks (worldwide) are also working on digital coins of their own. So, the digitization of everything money-related is on the horizon.

Consider this: investing in cryptocurrencies is a great way to diversify your currentfiat-based portfolio—especially your retirement portfolio—as you become an early adopter ofcrypto trading, relative to the rest of the world.

The recent attention drawn to cryptocurrencies has piqued the interest of regulators, and there are legal off-the-blockchain products available in which to invest. For example, there are CME hosts bitcoin futures products, and there are also many cryptocurrency ETFs for investment as well. In addition to these investment platforms, people are also looking into their retirement accounts, including their IRA and 401(k) accounts, for cryptocurrency investing due to potential associated tax advantages.

Pros of cryptocurrency investing:

  • It can help you diversify your retirement portfolio
  • Crypto is becoming more widely accepted
  • Potential for high scale with long-term investments

Are Cryptocurrencies Risky?

The most widely talked about risk associated with well-known cryptocurrency names is its volatility. While the broader market is experiencing  a good amount of unpredictability at the moment, cryptocurrencies tend to have wider price swings (on a daily basis) than some of the more popular stocks and ETFs.

Additional concerns of cryptocurrency investing tend to vary upon each individual investor. It’s important to note that not every coin will yield 1000% returns, as many are coming to realize. Like the threat of any stock, cryptocurrencies may experience hype before becoming vaporized when a significant player sells at the top, regardless of the project’s validity behind the coin.

So, simply opening a wallet and buying coins at random may not be a viable strategy. That said, smart investors wouldn’t necessarily do that with stocks, real estate or other types of investments either.

Risks of investing in cryptocurrencies:

  • Cryptocurrencies, on average, tend to be driven by speculation
  • Going into cryptocurrency investing with outlandish expectations may not always result in outlandish gains
  • Many invest in projects without doing their due diligence nor the proper research

Is Cryptocurrency a Good Investment?

Yes, it can be if the right strategy and due diligence are employed. It’s highly recommended for cryptocurrency investors to take the time and make the effort to educate themselves and do their research. This way, they can be better equipped to make thoroughly thought-out investment decisions to diversify their portfolio. Doing this gives them the potential to fare well with cryptocurrency investing.

As always, the use of risk parameters that are appropriate for your portfolio while taking advantage of these technologically innovative high-growth assets is highly recommended. BitcoinIRA offers a range of self-directed IRA options along with easy solutions for converting your fiat into crypto, all with just a few clicks via their mobile app or on their website.

Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-947-4125 or email us today.

Recommended article: Bitcoin vs Stocks

IRA and 401(k) Contribution Limits Are Increasing in 2019 – Here’s How to Take Maximum Advantage

In great news for those saving for retirement and looking to grow their investments, Americans will be able to contribute more to both their IRA and 401(k) in 2019.

The Internal Revenue Service announced that the 401(k) limit was up $500 from $18,500 in 2018 to $19,000 in 2019.

This increase applies to the 401(k) plans as well as 403(b) plans, most 457 plans and the federal government’s Thrift Savings Plan.

If you’re over 50, that’s even better news, as the the catch-up contribution limit for employees 50 and older is $6,000, which is the same as last year, but it does mean that this year those employees can put as much as $25,000 ($19,000+$6,000) in their 401(k) plan this year.

When it comes to IRAs, the Internal Revenue Service is lifting that contribution limit as well. Individual retirement accounts, or IRAs, see their first bump in six years, to $6,000 up from $5,500 in 2018. Again, investors older than 50 can save as much as $7,000 in an IRA by utilizing the catch-up contribution limit, which, this year, remains at $1,000.

IRAs and Compound Interest

Obviously, via the magic of compound interest, younger workers are poised to benefit even more if they max out their contributions.

The impact of the new IRA contribution limit is even bigger for someone who is younger. For someone at the age of 35 with $100,000 in their IRA so far, the extra decade of $6,000 annual contributions until age 65 results in a portfolio worth more than $2,700,000. Under the old contribution limit, the same investor would have been missing out on an extra $82,000 in their account.

Most Americans Miss Out on Retirement Benefits of 401(k)s

While the raised limits are great news, many Americans are expected to skip taking advantage of it. The Bureau of Labor Statistics says that only about 54 million American workers put any money at all into a 401(k) plan in 2015. Compared to the 150 workers on file that year, those numbers aren’t great.

Financial firm Vanguard said that only ten percent of participants dropped the max into their 401(k) contributions in 2016, which itself was a drop from 12% in 2013.

Bitcoin IRA Allows Account Holders to Transfer or Open Retirement Accounts

While not all Americans have an employer-sponsored retirement account, the ones that do often don’t contribute to it, either because they don’t know that they should – or because they can’t afford to do so.

Whatever your particular situation is, you can learn about the benefits of directing your retirement funds into Bitcoin IRA, as well as applying to start a new account, or transferring your existing account.

Five High Profile Crypto Adoptions in 2019

While most of the cryptoverse in 2018 has been dominated by the bear market, some industry experts are optimistic looking ahead to 2019.

And there’s plenty of reason to be. There are a number of high profile crypto adoptions in various stages, from planning to in progress to done deals. Each one of these moves digital currency a bit closer to wider, mainstream adoption.

Here’s a look at five ways cryptocurrency is finding its place in 2019 and beyond.

Binance Announces Users Can Pay For Crypto with Credit and Debit Cards

The largest cryptocurrency exchange in the world, Binance, recently announced a move that makes it easier for anyone to buy cryptocurrencies.

In late January, the exchange announced Thursday that it partnered with Simplex, a payments processing firm, to allow Visa and Mastercard holders to purchase bitcoin, ether, litecoin, and XRP. Those currencies can, in turn, be traded for more than 151 other tokens on the exchange.

“Building fiat gateways is what we need now to grow the ecosystem, increase adoption and introduce crypto to more users,” Binance CEO Changpeng Zhao said in a statement. “The crypto industry is still in its early stages and most of the world’s money is still in fiat.”

The adoption isn’t comprehensive just yet, however. Six U.S. states are not yet supported, among them New York, Georgia, New Mexico, Connecticut, Hawaii, and Washington.

Overstock Goes All In on Blockchain

It’s safe to say that Partick Byrne, founder of Overstock, is bullish on cryptocurrency.

Byrne, Both Overstock and Byrne, have deep ties to crypto and blockchain technology. In 2014, the retailer was among the first to accept Bitcoin. Ever since, the CEO and founder has been vocal about the potential of crypto and blockchain.

Even more recently, Bryne has stated that he believes that decentralised, stateless cash will be part of the larger future of humanity.

Referencing Overstock’s efforts to integrate the underpinning tech into its platform, Bryne stated “We think we’ve got cold fusion on the blockchain side.”

If that’s not a ringing endorsement, we don’t know what is.

Fortnite Begins to Accept Crypto

There are few things more popular than the online, “battle royale” style game Fortnite. There are more than 125 million users worldwide. The vast majority of them are under 18, and it’s been said – only half jokingly – that the user base knows more about crypto currency than most adults.

In the first week of of 2019, that was evident when the game briefly accepted the cryptocurrency Monero. According to Holiday 2018 consumer reports, youngsters were keen on using a cryptocurrency as a payment option – instead of cash – on Fortnite merchandise store.

The game relies on micro transactions for revenue, and putting that Monero logo in front of all those young eyes in the Fortune online store surely made an impression. Fortnite’s CEO removed the option after a few days, claiming that it had been added by mistake.

Still, the cat was out of the bag. “That’s some pretty awesome adoption,” a user said in the Monero sub-Reddit. “It’s a fantastic exposure of millions of people who might ask “What’s that groovy M? And why is it better than regular payment?”

Bitcoin Accepting Venues Explode in Number

The infrastructure necessary to accept Bitcoin isn’t going anywhere, and in fact is only getting stronger.

According to coinmap.org, the number of venues that accept Bitcoin and other currencies increased by 25%, to 14,137 in 2018. Alongside that, Bitcoin ATM installations absolutely bursted through the stratosphere, increasing by 98%, to grand total of 4,108 in 2018, according to coinatmradar.com.

A good number of those several thousand locations that accept crypto include increasingly big names like sandwich giant Subway, as well as an airline that can, quite literally, take crypto to the moon, Virgin Galactic.

Facebook Develops New Coin for WhatsApp Transactions

In addition, the Ethereum Constantinople hard fork will also occur on February 27. Hard forks can be controversial depending on their circumstances. All one needs to do is look at the recent bitcoin cash fork that occurred in November 2018 to understand, and volatility can often increase following the establishment of a new chain, thereby leaving room for ether prices to move up in early or mid-March.

The biggest item worth noting is that February 27 is when the Securities and Exchange Commission (SEC) is set to finally make its decision regarding a bitcoin exchange-traded fund (ETF) submitted by the joint venture VanEck SolidX. These companies have been working to get a bitcoin ETF approved since March 2017, though most early attempts have proved fruitless.

A Long Journey Concluded?

Facebook acquired messaging app WhatsApp in a high profile trade. The social media company paid $19 billion dollars in exchange for the app and it’s whopping 1.5 billion users. It’s inside that ecosystem that Facebook plans to develop a coin for money transfers using the app.

Initial details are scarce, but the word is that the currency will be in the class of stablecoins, and focus on targeting the remittance market in India, considered a sphere of influence for Ripple and their XRP coin, who boasted of holding a near fifty percent market share earlier in the year.

In contrast to the investment-focused assets like Bitcoin and others, stablecoins provide a more consumer-friendly landscape for digital transactions. And it’s no doubt that with Facebook going all in on its own cryptocurrency, it’s a simple matter of time until other internet behemoths follow suit. Tweetcoins, anyone?

Hopefully, with more widespread adoption in 2019 and more investors in the mix overall, the bear goes back into hibernation.