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Bitcoin IRA | Crypto & Bitcoin IRA Taxes

Cryptocurrency & Bitcoin IRA Tax Rules

How Is Crypto Taxed in the United States?

It’s important for investors, including those with cryptocurrency IRAs, to understand how taxes affect their accounts. Cryptocurrencies are treated as property according to the IRS, just like many other investments. Every sale may cause a taxable event, with only a few exceptions. But if you hold your cryptocurrencies within a crypto IRA, you may receive tax-free or tax-deferred growth, depending on the account type.

There are some instances where certain activities that involve cryptocurrencies can be treated as income, and thus be subject to income tax. When cryptocurrencies aren’t within crypto IRAs, capital gains taxes typically apply when any of the following events occur:

  • Selling cryptocurrency for traditional currency.
  • Using cryptocurrency to purchase goods and services.
  • Trading one cryptocurrency for another on an exchange or peer-to-peer.

Income tax may be applied when any of the following events occur:

  • Receiving cryptocurrency from an airdrop.
  • Interest earned from decentralized finance lending.
  • Income earned crypto mining from block rewards and transaction fees.
  • Crypto earned from liquidity pools and staking.
  • Receiving cryptocurrency as a means of payment for services.

Do You Have to Claim Taxes from Holdings in Your Bitcoin IRA?

It’s important to see a crypto IRA as a long-term investment in order to refrain from taking distributions before the retirement age of 59½. This is because early withdrawals may be subject to tax penalties, unless the withdrawal is for specific hardships  defined by the IRS.

Will BitcoinIRA Send Me a 1099-Form?

There are several different types of 1099 forms that you may receive regarding your cryptocurrency investments; you may receive all of them, some of them, or none of them. As cryptocurrency continues to become more federally regulated, all cryptocurrency exchanges may need to comply with regulations concerning the creation of proper tax documentation.

Here are brief descriptions of the various 1099 documents that may be entailed by cryptocurrency and IRAs.

1099-R: Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contract, etc.: IRS information can be reported on a 1099-R if there is a distribution of $10 or more. Plan or account custodians typically issue a 1099-R for the IRS, recipient, and state or local tax department. If you receive an eligible distribution from accounts such as IRAs, profit-sharing plans, retirement plans, pensions, annuities, and so forth, you should get a 1099-R.

1099-B: Proceeds from Broker and Barter Exchange Transactions: A 1099-B form will display all your transactions by showing the purchase price, sales price, and any resulting gain or loss from the sale of crypto.

1099-INTInterest Income: A 1099-INT form will show interest income that is taxable as ordinary income.

Can Taxes Be Avoided by Investing in a Bitcoin IRA?

Yes, some taxes can be avoided by using a Bitcoin IRA. We offer two types of cryptocurrency IRAs, Traditional and Roth. Traditional Bitcoin IRAs are tax-deferred, whereas Roth Bitcoin IRAs can potentially grow tax-free, depending on the assets chosen. Also, avoiding taxes on capital gains could potentially save you money. This means you’ll be able to enjoy more of your own money during retirement, as opposed to other investment strategies that don’t offer such protection. That said, it’s helpful to remember that you can be subject to penalties if distributions occur before you reach the age of 59½.

Does the IRS Track Bitcoin IRA Activity?

Technically, the IRS cannot track every Bitcoin or cryptocurrency transaction and is instead relying on individuals to comply in good faith. It has only been since 2014 that the IRS has begun to tax cryptocurrency. Since then, they have mainly targeted individuals who have had at least $20,000 in transactions in any given tax year.

For example, the IRS has historically filed court summons’ that seek similar information from other exchanges. In one example, the IRS requested account registration information, account activity records, and other materials for customers (who had at least $20,000 in transactions in any tax year from 2016 to 2020) from Circle Internet Financial, a cryptocurrency exchange based in Boston.

In recent years, the IRS has filed other court summons seeking similar information from other exchanges. However, the IRS doesn’t track every crypto transaction. Because crypto is treated like stocks, bonds, or other capital assets, you are required to be fully transparent with the IRS on your tax return. This means your tax return will need to indicate if you’ve transacted in cryptocurrency.

Essentially, it is up to individuals, currency exchanges, and cryptocurrency IRA firms to report transactions and to produce 1099 tax forms each year.

How Do I Report Taxes on My Cryptocurrency IRA Savings?

As long as you keep the money in your Bitcoin IRA, you should not need to report any gains or losses on your investments. That’s because IRAs are tax-sheltered. What this means is that no taxes are incurred while the money is in the account. Once you begin to take distributions from your IRA at retirement age, you will need to take possible taxes into consideration

Short-Term Capital Gains Tax

Short-term capital gains taxes are often higher than long-term capital gains taxes. For example: For the 2022 tax year, if you purchase crypto for $50,000 and then sell it for $150,000 six months after you purchased it, you will pay short-term capital gains taxes on $100,000. Short-term capital gains are subject to taxation as ordinary income at graduated tax rates. IRAs are often used to help individuals avoid capital gains tax because capital gains tax will not apply to distributions from a retirement account

Long-Term Capital Gains Tax

Long-term capital gains tax is applied to the profit from the sale of any property that has been in one’s possession for more than one -year from the purchase date. The term “property” is applied to real estate, precious metals, stocks, bonds, and cryptocurrency. The tax rate is determined by a graduated threshold for taxable income at 0%, 15%, or 20%. As mentioned above, you can use an IRA to defer paying taxes as you will not be taxed until money or assets distributed from the IRA

BitcoinIRA is the world’s first, largest, and most secure cryptocurrency IRA platform used by more than 170,000 users. BitcoinIRA clients can take advantage of the numerous tax benefits that an IRA offers while investing in the long-term potential that cryptocurrency brings. In addition, users can buy and sell online any time with the BitcoinIRA platform, which contains built-in live price tracking, portfolio performance metrics, and educational articles and videos. Our platform offers world-class security1 with up to $2502 million custody insurance.

If you’ve been considering entering the crypto market but are unsure of how to begin, signing up for with BitcoinIRA could be a great way to plan for your future and your long-term financial goals.

 

Buy & sell crypto online 24/7 using an industry-leading platform. . . get started with Bitcoin IRA today!

1Security may vary based on asset chosen and custody solution available.

2Insurance may vary based on asset chosen and custody solution available.

 

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Glass coin bank displaying 401k label

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 $250 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 $250 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

Avoid These 6 Crypto Mistakes | Bitcoin IRA

Smart investors are turning to cryptocurrencies to diversify their portfolios and retirement accounts. Crypto investments can be effortless and affordable, and cryptocurrencies can be easily added to an IRA as part of a long-term investment strategy.  

However, the ease of crypto investing has also prompted new investors to make some avoidable mistakes. Understanding the best moves to take before that first transaction can make adding cryptocurrency to any portfolio more successful. 

Avoid: Investing in One Type of Crypto 

The most famous cryptocurrencies are Bitcoin and Ethereum. So, it’s tempting to invest in what seems familiar because it has been discussed the most 

However, a smart investor wouldn’t put all of their money in Apple stock, for example. Diversification is a better option, often producing better returns 

The same holds true for cryptocurrencies. There are more than 18,000 cryptocurrencies available to invest in, and Bitcoin IRA supplies access to more than 60 of the most popular. Diversifying a portfolio with crypto is as easy as diversifying with stocks.  

Avoid: Not Doing Diligent Research 

Cryptocurrencies produce whitepapers at the launch of their new currency to explain to investors and potential investors how this coin is different and what it supports. Each crypto project is designed to solve a specific problem. The whitepaper explains what problem a particular coin will solve and how it is expected to perform.  

Diligent research often involves reading the whitepapers, or at the very least, the one-pagers of each coin before investing. Also, investors can join forums that talk about each project to hear from other investors.  

It’s important to note how recently others have been talking about a coin, too. Ensuring that the coin is still relevant avoids the crypto investment mistake of falling for a scam. 

Avoid: Forgetting Your Keyphrase 

A keyphrase — also known as a passphrase or password — is designed to keep investments on the blockchain secure. The stories of investors with millions of dollars sitting in a crypto wallet they can’t access are legendary.  

Because of these stories, additional options are available to investors who want their crypto secure but can’t always remember their long keyphrase.  

With a Bitcoin IRA account you don’t need to worry about remembering a keyphrase because we do it for you.

Avoid: Investing Without a Plan 

It’s fun to want to dive into cryptocurrency investing as soon as a wallet has been opened. But, just as investing in stocks and bonds, starting without a road map could be a costly mistake.  

  • Understand both short- and long-term goals 
  • Research preferred projects 
  • Monitor market changes 
  • Manage risk  

Avoid: Thinking Short-Term 

Let’s say an investor put money into Bitcoin when it emerged in 2008. For the first couple of years, the price was barely above $0, and by 2011, had “skyrocketed” as high as $30. If the same investor had sold their shares at the end of 2011 for $5, that would seem like a decent return.  

But by 2017, nine years after the initial investment, the price of Bitcoin was at $20,000. 

Cryptocurrencies are showing long-term potential for investors considering a long-term investment, and an IRA offers a tax-advantaged place to house that investment.. For investors looking for short-term crypto trading, monitoring the market could be essential for success.  

Do: Use a Trustworthy Crypto Exchange 

One big mistake that most traders should avoid making is hopping onto the first platform they find that can assist with crypto trades.  

Bitcoin IRA is the world’s first and most trusted crypto IRA platform offering 24/7 trading to users. Investors can utilize the online portal or custom mobile app to buy, sell and swap more than 60 cryptocurrencies for their self-directed retirement accounts.  

Setting up an account is effortless, and IRA funds can be rolled over or directly deposited for easy access to trading.

Recommended articles: Guide to Cryptocurrencies in a Roth IRA

Crypto Investing Myths Debunked

Camilo Concha Co-Founder of Bitcoin IRA Wins EY Entrepreneur Of The Year® 2022 Greater Los Angeles Award | Bitcoin IRA

LOS ANGELESJune 17, 2022 /PRNewswire/ — Ernst & Young LLP (EY US) today announced that Camilo Concha Co-Founder of Bitcoin IRA was named a winner of the Entrepreneur Of The Year® 2022 Greater Los Angeles Award. The EY Entrepreneur Of The Year Award, now in its 36th year, is one of the preeminent competitive business awards for entrepreneurs and leaders of high-growth companies who think big to succeed.

Concha was selected by an esteemed panel of independent judges according to the following criteria – entrepreneurial spirit, purpose, growth and impact – among other core contributions and attributes. Concha was awarded the honor during a ceremony on Thursday, June 16.

“I want to congratulate all the other finalists alongside me. To be named a winner as one of EY’s Entrepreneurs of the Year 2022® Greater Los Angeles, is a true honor and want to thank EY for this recognition,” said Concha.

“I’m proud of what we have built, and the award is a testament to the amazing work accomplished by our talented team of leaders and dedicated employees at Bitcoin IRA”. Concha goes on to say, “I have spent my entire career as an entrepreneur and have been devoted to building companies and products that help people and have a lasting impact. My guiding light as an entrepreneur is staying focused on our mission in helping Americans retire and it has been a big part of the company’s success.”

Bitcoin IRA is the world’s first and most trusted, full-service crypto IRA platform with a mission to help Americans retire. The company pioneered the crypto IRA space and simplified the complex process, allowing users to buy, sell, and swap over 60 cryptocurrencies in their self-directed retirement account safely and securely. With the first-ever crypto IRA mobile app, Bitcoin IRA’s platform is available in real-time, 24/7, in all 50 states. As an industry leader, it has a fully integrated trust company, in addition to exclusive relationships with industry-leading, multi-signature digital wallets, like BitGo.

Under Concha’s leadership, Bitcoin IRA has processed billions in transactions and has over 150,000 users, with more than 3,500 5-star reviews. Bitcoin IRA offers up to $250million in custody insurance coverage for digital assets. Plus, the company embraces diversity across its organization, being comprised of 50% minorities. As the media’s go-to source for thought leadership, it averages 300 interviews per year from major outlets, including Forbes, CNBC, Bloomberg, CoinDesk TV, and The Wall Street Journal.

Sponsors

Founded and produced by Ernst & Young LLP, the Entrepreneur Of The Year Awards are presented by PNC Bank. In Greater Los Angeles sponsors also include Marsh USA Inc., New Tangram LLC, CBRE, Inc., Cooley LLP, Cresa Partners of Los Angeles, Inc., and Olmstead Williams Communications.

About Entrepreneur Of The Year ®

Entrepreneur Of The Year is one of the world’s most prestigious business awards program for unstoppable entrepreneurs. These visionary leaders deliver innovation, growth and prosperity that transform our world. The program engages entrepreneurs with insights and experiences that foster growth. It connects them with their peers to strengthen entrepreneurship around the world. Entrepreneur Of The Year is the first and only truly global awards program of its kind. It celebrates entrepreneurs through regional and national awards programs in more than 145 cities in over 60 countries. National overall winners go on to compete for the EY World Entrepreneur Of The Year title. ey.com/us/eoy

About EY Private

As Advisors to the ambitious, EY Private professionals possess the experience and passion to support private businesses and their owners in unlocking the full potential of their ambitions. EY Private teams offer distinct insights born from the long EY history of working with business owners and entrepreneurs. These teams support the full spectrum of private enterprises including private capital managers and investors and the portfolio businesses they fund, business owners, family businesses, family offices and entrepreneurs. Visit ey.com/us/private

About EY

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

About Bitcoin IRA

Bitcoin IRA, available at bitcoinira.com, is the world’s first and most trusted digital asset IRA technology platform that allows users to buy & sell cryptocurrencies for their self-directed retirement accounts.

They provide a secure[i] self-trading platform for self-directed retirement accounts. Users can set up a qualified digital asset IRA, transfer funds from an existing IRA custodian, execute self-trades in real-time 24/7 through a US-based exchange, and store funds in industry-leading multi-signature digital wallets.

Bitcoin IRA has processed billions in transactions and has over 150,000 users with more than 3,500 5-star user reviews. The platform has been featured extensively in the media, with coverage in Forbes, CNBC, CoinDesk, and The Wall Street Journal, among other leading publications.

Bitcoin IRA is a financial services technology provider, and as such, is not a financial adviser, cryptocurrency exchange, custodian, wallet provider, initial coin offering (ICO), or money transmitter. Bitcoin IRA is privately funded.

Learn more about Bitcoin IRA at bitcoinira.com or call 866-333-4307.

i Security may vary based on asset chosen and custody solution available.

 

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Web 3.0 Guide to Crypto IRAs | Bitcoin IRA

First came the World Wide Web, which connected businesses, technology and people across the globe. Then, Web 2.0 introduced the rise of platforms, apps and interactivity for users.  

Blockchain technology has helped create the next evolution of the internet: Web 3.0. As Web3 continues to evolve, it is focused on decentralization, data security, and user privacy and it integrates cryptocurrency and other token-based economics 

The rise of Web3 could help investors make trades and utilize cryptocurrencies in their IRAs and other retirement accounts while keeping their data private 

What is Web3? 

Like other products, the internet has gone through transformations and transitions for its users. Those who remember Web 1.0 experienced a read-only version of the internet, which meant that viewers could read content but not really otherwise interact with it.  

In Web 2.0, users can post, “like,” subscribe and help add to the content that exists on the internet. One concern that some users have of Web 2.0 is the ease of data collection and privacy issues. By using data mining, companies can target ads based on how a user browses or utilizes the internet.    

The movement to Web 3.0 combines the first two—allowing for reading and interaction—but it decentralizes ownership and theoretically lets users own their parts of the internet. That means that as users browse Web3, their digital identity is no longer connected to their physical identity 

Web 3.0 and Your IRA

Web 3.0 is expected to encompass nearly anything blockchain-related. As online retailers have begun to accept payments in cryptocurrencies, that can be considered a Web 3.0advancement. Investors are able to take advantage of this by buying Bitcoin, Ethereum, or other widely accepted cryptocurrencies 

Another way that investors can try to benefit from the Web3 movement is to consider its different projects. Take decentralized autonomous organizations, or DAOs, for example. DAOs are designed to replace traditional company boards, giving token holders voting rights to company decisions. 

To better understand how DAO-type coins could work in an IRA, consider two (of the many) cryptocurrencies that Bitcoin IRA allows investors to purchase: Uniswap (UNI) and Compound (COMP).  

Uniswap (UNI) is crypto associated with an exchange that runs off the Uniswap protocol. In a nutshell, Uniswap decentralizes the security of traditional banking transactions and the authentication process.  

Another DAO coin, Compound (COMP), also facilitates transactions, but it is not an exchange. Compound gives owners the ability to lend and borrow the cryptocurrencies it supports at higher returns than typical savings accounts.  

DAOs also have the potential to make money through dividends, depending on the goal of the project. Commitments to DAOs are just one way that Web3 could aid investors. As Web3 is being built, investors could also leverage the decentralization of corporate infrastructure for long-term financial gain.   

How to Invest an IRA in Crypto 

Bitcoin IRA is helping Americans invest retirement funds in the world of crypto. It’s the world’s first and most trusted crypto IRA platform that offers 24/7 trading and allows users to buy, sell and swap more than 60 cryptocurrencies for their self-directed retirement accounts.  

As investors learn more about Web3 and how it can aid in retirement, they can quickly open a Bitcoin IRA account to start investing in crypto today.  

 

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Guide to Funding Your Bitcoin IRA Account

Guide to Funding Your Bitcoin IRA Account | Bitcoin IRA

Opening an IRA is certainly exciting! It means that an investor has made the commitment to making a potentially comfortable retirement a priority.

Two simple ways to fund a new Bitcoin IRA account are rolling over retirement funds that already exist or by making contributions directly from your bank account. But what about after that is done?

Should investors keep their contributions coming, and if so, what and how much? Here are some ideas to help you decide how to continue funding your self-directed retirement account with Bitcoin IRA.

Funding Your IRA Account

After creating a Bitcoin IRA account, you may continue to fund it in a few ways. One option is to set up recurring contributions. Investors with excess or disposable income from their regularly occurring paychecks can automatically transfer a percentage of it or a fixed amount to their self-directed retirement account. This method, because automatic transfers may be set up, is a simple and easy-to-remember option for funding your SDIRA.

One way to look at it is to consider it a monthly IRA payment as you would a bill or subscription service for the future. How much would a new music platform, streaming, food box, or other subscription cost? In this case, when investors choose to divert that money (for a monthly contribution) toward their retirement, they can add to a Bitcoin IRA account every month in place of an additional subscription.

One great way users may save some extra coin is to participate in a round-up program. Numerous banking institutions and apps offer round-up programs, in which the final balance of debit card purchases is “rounded-up” to the nearest dollar, and the spare change is moved to a savings account. Investors can then choose to take that extra money and put it towards retirement.

Investors may also consider asking family members for IRA contribution gifts as birthday, wedding or anniversary presents.

Understanding Contribution Limits

The IRS has placed limits on how much investors can add to an IRA account each year. To learn more about this, it’s best to consult with a tax advisor about this year’s contribution limits.

It’s important to note that these limits change regularly, and an investor’s age plus taxable income may be considered.

How to Buy Bitcoin in an IRA Account

Bitcoin IRA simplifies the process of investing in crypto within a self-directed IRA, essentially creating a seamless experience for users to buy Bitcoin and other cryptocurrencies with their Bitcoin IRA account once it’s been funded. The easy-to-use platform is equipped with many useful features, such as an online dashboard, custom price alerts and more! Plus, unlike the market for traditional investment assets, users can buy, swap or sell crypto on the Bitcoin IRA platform 24/7.

When a user chooses to invest in crypto through a self-directed IRA, all investment decisions are 100% owned by that user. Investors, thus, have the power to devise their own winning strategy and stick to it. Bitcoin IRA offers users more than 60 types of cryptocurrencies to choose from, which may aid in portfolio diversification.

No matter what, Bitcoin IRA* has your cryptocurrency investing needs covered.

*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.

 

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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.

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Converting Existing Retirement Accounts to Crypto with Bitcoin IRA

Converting Existing Retirement Accounts to Crypto | Bitcoin IRA

Once investors decide to diversify their retirement portfolios by investing in cryptocurrency, the next step is to determine the best way to fund this new retirement endeavor.

A self-directed IRA (SDIRA) is a viable option for investors to consider and they can get started by either opening a new account or converting an existing retirement account.

What is a Self-Directed IRA?

A self-directed IRA varies from a traditional IRA in that investors have more flexibility in the types of investments they choose to make. With an SDIRA, you have the choice to fund it with non-traditional assets, like crypto, through a custodian or broker. Since cryptocurrency investing is not yet considered a “traditional” investment method, investors may choose to open a self-directed IRA to invest in cryptocurrencies. Meanwhile, it’s important to note that investment advice is no something provided by the self-directed custodian.

Non-traditional investment vehicles—including crypto, real estate, private equity and gold—offer investors ways to diversify their portfolios away from traditional assets, like stocks and bonds. While a bit more exciting, these investment options may be highly volatile and also come with their own set of risks and rules.

The risks include how investors understand self-directed IRAs, in addition to the account holder’s expertise in what and how they choose to invest their funds. The rules are too numerous to list here, but many can nullify the account’s tax-advantaged status. For example, if the IRS finds out you painted a wall in an apartment building owned by your IRA rather than hiring someone, you may have likely engaged in a prohibited transaction.

Investors may also want to avoid the risks of early withdrawals that come with cryptocurrency investing; despite how tempting it may seem to cash out early after seeing profits.

How to Convert Your Retirement Account to Invest in Cryptocurrency

For investors ready to convert existing IRAs, the first step is to find a qualified custodian, like Bitcoin IRA that offers the investing products they seek for investing in cryptocurrency. Next, identify the type of retirement account you have or the one you would like to open.

The primary differentiator between account types is how they are taxed. Investors have the option to choose between a Roth or traditional IRA. The funds deposited into a Roth IRA are taxed before they enter the account, while the funds in a traditional IRA are taxed upon withdrawal.

Investors can choose to utilize either type of IRA. Furthermore, investors who decide on a self-directed Roth IRA should be aware that they may be required to pay taxes if the funds are converted from a traditional IRA. It is wise to consult with a tax professional before converting funds to a new account type.

After contacting the new retirement account custodian with your information to start the conversion process, the account should be ready for you to fund it and to begin investing in cryptocurrency.

Find a Cryptocurrency-Friendly Retirement Account  

To safely invest in crypto with your self-directed IRA, look for a platform based in the United States that offers custody insurance1 and cutting-edge security2. Bitcoin IRA* provides customers in all 50 states with more than 60 cryptocurrency investing choices through easy-to-use mobile and web-based platforms.

It’s the world’s first and most trusted crypto IRA platform that offers 24/7 trading and allows users to buy, sell and swap their cryptocurrencies with their self-directed retirement accounts. Visit BitcoinIRA for more information today.

2Security 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.

 

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Guide to Cryptocurrencies in a Roth IRA