Tag: Investor

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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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

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