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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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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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Crypto Investing Myths Debunked

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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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

Using Crypto to Diversify for Retirement | Bitcoin IRA

Using Crypto to Diversify for Retirement | Bitcoin IRA

Diversifying a retirement portfolio is essential for investors at any age and stage of their investment journey. It’s typical for younger investors tend to take on more risk, while those closer to retirement age are more likely to pare back risks to ensure capital preservation.

Managing that risk includes evaluating retirement account investment structures. One traditional option is to hold 60% in stocks and 40% in bonds, but when bond rates are at historic lows, some investment managers may suggest that the ratio be closer to 70/30. This allocation leaves openings for alternative investments as one of the best ways to diversify for retirement.

New Ways to Diversify for Retirement

So, where should you start looking for that extra bang that will help you reach your goals by the time you are ready to retire?

Consider alternative investments beyond stocks and bonds that often include real estate, precious metals, and private equity. In addition to these alternative options are cryptocurrencies, which are also quickly gaining ground as investors seek more asset classes to diversify investments for retirement.

As an asset class, cryptocurrencies offer investors new transaction options. They also provide levels of transaction transparency that might be unachievable with cash and other current digital methods. These qualities make cryptocurrencies viable for mass adoption by governments, central banks, and institutions, as well as private investors.

In all, cryptocurrencies are a great way to diversify an IRA portfolio because the IRS views them as assets. To add these to your portfolio, it’s best to find an investing platform that supports crypto investments in your IRA.

How to Diversify for Retirement with Crypto

When beginning to diversify your investments with crypto, an option one can take is to start with the due diligence and fundamental analysis that you would do with any other investment product.

One of the easiest ways to perform basic research on cryptocurrencies is by reading through the whitepaper distributed at each coin’s initial offering. You should be able to find this information—and more—about each individual cryptocurrency on its project website. Read through each paper to see whether it has a viable use case and which problem(s) are solved by that specific cryptocurrency.

Also, consider how the trading volume has changed over time. You may want to look for cryptos that have historically increased interest and trading volume. To really dig into the details, you can search online forums to view conversations about what current investors think about the coin.

Another way to analyze crypto charts is by technical analysis. To do this, start by opening a chart in your trading platform and applying your favorite indicators to help you decide your best opportunity to start trading.

Where to Diversify Your Retirement with Crypto

Not all self-directed IRA platforms are designed to help you diversify your retirement portfolio with cryptocurrencies. If you’d like to add crypto to your IRA portfolio, be sure to find an investing platform, like Bitcoin IRA that can serve you and your needs as you diversify with alternative investments.

Bitcoin IRA* is an industry-leading Crypto IRA platform  that offers a variety of cryptocurrency investment choices (60+ coins) to account holders. With a substantial base of over 100,000 users, our easy-to-use platform can be accessed both online and via our mobile app (available for iOS and Android). Bitcoin IRA is a solution designed for investors who are ready to take control of their retirement and build the best diversified portfolio to suit their needs Visit Bitcoin IRA to get started so you can diversify your investment portfolio with cryptocurrency today.

 

*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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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.

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Crypto Investing Myths Debunked | Bitcoin IRA

Bitcoin, Ethereum, Cryptocurrency, Investing Myths Debunked

What started as an underground asset class for the computer savvy has turned into a household name. Interest in cryptocurrencies has exploded, and with it, some myths and misconceptions about the space.

If you have ventured beyond Yahoo News or the Wall Street Journal to learn how to invest in cryptocurrency, information within the universe can appear off-the-wall and disingenuous—making it look like a poor investment choice. But, with gains in the 1000% percentile, it’s hard to ignore completely. So here are some of the top cryptocurrency myths debunked.

Cryptocurrencies are a Scam – FALSE

Financial fraud dates back to the creation of money. Here is a fun fact, in 193 A.D., the Praetorian Guard auctioned off the Roman Empire (which they didn’t own), to Julianus for 250 gold pieces for each member of the army (equivalent to approximately more than $1 billion today). Julianus was never recognized as emperor and the new sitting emperor executed the guards.

First of all, crypto (when invested using a credible platform) is generally not a scam—despite the many naysayers across various social media channels. While cryptocurrency investing doesn’t have the heavy regulations of other investment types, it is believed that federal regulations for crypto are in the works. Like any other investment, it is always recommended for investors to do their due diligence and research to protect themselves from bad players and other dishonest entities.

Obtaining meaningful research from the cryptocurrency universe can be challenging at first, but it is not impossible. It’s recommended to keep things simple by starting with credible sources, such as relevant online publications from notable names within the segment, including Bitcoin Magazine, Crypto Briefing, and Blockchain Magazine. Another way to prevent a bad or fraudulent situation is to invest through a trusted platform, such as BitcoinIRA, which offers over 60 types of cryptos via both a web experience and convenient mobile app.

Too Much Anonymity – Mostly FALSE

Over the years, cryptocurrencies have been touted as a way for people to launder money because of their anonymity. However, this is false for most cryptocurrencies, including $BTC and $ETH. Simply put, cryptocurrencies are built on a linked public ledger. For example, the information in block B contains some information from block A, and information from block B is inserted into block C as it is formed—creating the digital blockchain.

If any information in any block is disturbed, the chain is no longer in agreement with the information present, and the chain becomes invalid. Of course, there is much more to this, but the linked ledger makes it impossible to alter the sequence of transaction information to hide one’s activities. The means that authorities can more easily track and identify fraud through blockchain.

Meanwhile, IT programmers are working on stealth addresses and new ledger protocols to achieve better anonymity for many reasons. Some credible reasons include trade secrets and personal information protection. So, it is possible to achieve some level of anonymity with cryptocurrencies, but most available coins do not operate this way.

Cryptocurrency Investing and Trading is Easy – FALSE

Cryptocurrency investing is like any other market; people buy when they think prices will increase. When any asset class is in a bull market, buying low and selling high is no longer an art. The problem with bull markets is that they come to an end.

For example, the stock and housing markets have been in a long-term uptrend since the Great Financial crisis bottom in 2009. Since then, people have generally taken the BTD (buy the dip) approach and been successful. But when the winds change, this strategy will no longer work for any market.

Since the US Federal Reserve announced in late 2021 that they would bepulling back financial accommodations interest-rate sensitive products have moved in sympathy to the news—with the technology sector being hit the hardest.

While the Fed has very little to do with cryptocurrencies, the idea is the same. For instance$ETH prices are showing an optimistic pattern now that large corporations are interested in selling NFTs (non-fungible tokens) and their metaverse applications.

So, cryptocurrency prices are also susceptible to political news and moves in international equity markets. Suppose you are the type to invest in new ICOs. In that case, it’s recommended to gain a better understanding of the protocol used, what significant news events could potentially affect pricing, the underlying project, how well it is being marketed, and which problems it may solve for probable future success.

Understanding Crypto

Overall, like many asset classes, cryptocurrency investing has its strengths and weaknesses, which is why it’s wise to do your due diligence and research before making any investment decisions. That way, regardless of what is being said on various public forums, your viable investment opportunities may not be swayed by opinions of sources that may lack credibility or expertise. Additionally, it’s generally a good idea to understand the mechanics behind how your money is being put to work. So, take the time to learn how to invest in cryptocurrencies and invest through trusted platforms, like Bitcoin IRA.

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The bitcoin ira logo sits on a field of white

Bitcoin IRA™ Launches Next Generation of IRA Services for Digital Assets

Company Announces New Partnership with BitGo Trust for Secure Custody; New Offering Features $100 Million Insurance Protections and Lower Fees

LOS ANGELESJune 25, 2019 /PRNewswire/ — Bitcoin IRA, the world’s first, largest and most secure digital asset IRA company that allows clients to self-trade cryptocurrencies and other digital assets 24/7 for their retirement accounts, today announced that it has launched the next generation of investment retirement account services for digital assets. With this launch, a division of Bitcoin IRA has become BitGo Trust’s retail administrator for retirement accounts.

Since 2016, Bitcoin IRA has processed over $350 million in digital asset transactions for self-directed retirement accounts. In 2019, its new self-directed client’s saw significant growth due to the increase in the value of cryptocurrencies in the first half of the year.

Bitcoin IRA’s clients will now have their digital assets stored with BitGo Trust Company, the first qualified custodian purpose-built for digital assets. BitGo Trust’s cold storage carries $100 million in insurance where the offline private keys are held 100% by BitGo or BitGo Trust. Additionally, Bitcoin IRA is able to reduce wallet holding fees by 30% and reduce client transaction fees. Bitcoin IRA and BitGo Trust Company will also be waiving the first year’s account fee for a limited time.

For more information:

Chris Kline, COO, Bitcoin IRA said:

“Our partnership with BitGo Trust provides our clients with faster account funding, lower fees, as well as significantly increased insurance protections. This establishes us not only as the premiere digital asset retirement platform, but also expands us to a leading full-service solution for businesses with a large number of retail clients looking to easily invest in digital assets safely and securely.”

Mike Belshe, CEO, BitGo, said:

“Bitcoin IRA delivers an innovative retirement platform and, with our industry-leading technology and practices for security, custody, and compliance, we have built the industry’s best offering for retail investors who want to make digital assets a part of their retirement investment strategy.”

Bitcoin IRA’s Digital IRA division will be handling all administrative responsibilities including retirement plan administration, transfer application process, BSA/AML compliance, and transaction monitoring.

ABOUT BITCOIN IRA
Bitcoin IRA, available at bitcoinira.com, is the world’s first, largest and most secure digital asset IRA company that allows clients to purchase cryptocurrencies and other digital assets for their retirement accounts.

The company provides a trading platform for self-directed retirement accounts which allows clients to set up a qualified digital asset IRA account, transfer funds from an existing IRA custodian, execute trades in real-time 24/7 through a leading exchange and then move the funds into an industry-leading multi-signature digital wallet from BitGo, Inc.

Since 2016, Bitcoin IRA has processed over $350 million in investments, gained over 4,000 clients and received more than 400 5-star client reviews. The company has been featured extensively in the media, with coverage in Forbes magazine, CNBC, and The Wall Street Journal, among other 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 and based in Los Angeles. It is currently exploring investment capital.

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

ABOUT BITGO
BitGo is the market leader in digital asset financial services, providing institutional investors with security, custodial, and liquidity solutions. BitGo is the world’s largest processor of on-chain bitcoin transactions, processing 15% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. The company supports over 100 coins and tokens and has over $2 billion in assets in wallet. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and spans more than 50 countries. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. BitGo is backed by Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Goldman Sachs, Redpoint Ventures, and Valor Equity Partners.