Bitcoin IRA is a financial platform that enables investors to hold cryptocurrency in a tax-advantaged retirement account. With a focus on security and compliance, Bitcoin IRA makes it easy for investors to diversify their portfolio and prepare for their financial future with the power of cryptocurrency.
Cryptocurrency is gaining popularity – and fast too. Even if you haven't actively looked into it, chances are that you have heard about Bitcoin and you are probably wondering if it can be used as a future investment.
Well, the answer to that would be a strong 'yes'. You can certainly invest in crypto and live your sunset years hassle-free. Now, we understand that you probably don't know how to go about it and that is where Bitcoin IRA comes in.
It is an investment company that can help you manage your IRA while also giving you access to reputable digital wallet services. Want to learn more about it? Keep it here.
A Quick Summary of Bitcoin IRA
Bitcoin IRA is the brainchild of three individuals Chris Kline, Johannes Haze, and Camilo Concha. It was founded in 2015 and is located in Sherman Oaks, California. The main service provided by the company is to aid investors to access cryptocurrency custodians and wallet services.
It may also interest you to learn that the company has processed over $1.5 billion and boast more than 100,000 users currently.
Now, a considerable number of people find that crypto IRAs offer a great way to invest in digital currency while avoiding paying taxes against capital gains, something that is common with conventional non-retirement investments.
If you are wondering how to invest in and buy Bitcoin, as well as how to include precious metals in your retirement portfolio. Bitcoin IRA is the company that will help you as far as achieving your objectives.
How Bitcoin IRA Works
You may already have figured that just like its name implies, Bitcoin IRA allows you to diversify your savings by investing in cryptocurrency, and in particular Bitcoin.
However, you want to keep in mind that it is not a crypto wallet or exchange, but rather a platform that allows you to manage your IRA. It allows you to access a crypto wallet and exchange too.
To fund your Bitcoin IRA account, you need to roll over a minimum of $3,000 from an already existing IRA. It is impossible to transfer cryptocurrency from another platform into this account and that is simply because IRS regulations stipulate that. Moreover, all virtual currencies bought through the platform must be in USD.
Now Bitcoin IRA executes your rollover within five business days and once that is done, you can start trading through the platform. Funds will be held in your account so you won't have to pay dividend taxes or capital gains. Note that the money paid to the account is tax-deductible.
What you will probably love most is that Bitcoin IRA just like all self-directed IRAs will only execute trades only when you allow it. You get to choose what currencies you want to invest in, how much to buy when to do it, and how to swap or trade.
Your account is stored in a digital wallet that is entirely offline. This is commendable seeing as it safeguards your asset from hackers. Now, since your earnings will be in an IRA, premature withdrawal subjects you to tax penalties. You would be required to pay income tax if you wish to withdraw from the account before you reach 59 years of age.
What Should you Expect from Bitcoin IRA?
Now that you know how the Bitcoin IRA company works, you probably want to know what you will get from it. Here's what is in store for you.
1. Tax-deferred Investing
Your Bitcoin IRA account is self-directed. As such, you are allowed to make long-standing investments in preferred alternative assets tax-free on dividends and capital gains.
Just like conventional IRAs, your contributions to the account are subject to deductions in the year that they are made. The only time you will be required to pay taxes is when you withdraw the funds. Of course, you will be penalized if you wish to withdraw funds before your retirement.
2. Low-cost Precious Metal Investing
Besides purchasing digital currencies, Bitcoin IRA allows you to buy gold as well. The process work and the fees are similar to those for crypto investing. However, you will be purchasing ownership rights to tangible gold bars.
These gold bars are kept in vaults in high-security facilities and controlled by the Department of Financial Services in the state of New York. The company eliminates a lot of storage costs and brokerages that are usually associated with purchasing precious metals.
3. Interest-accruing Account
We can assure you that your IRA account is likely to grow when you use Bitcoin IRAs services. Along with that, you can earn interest in Ethereum, Bitcoin, and cash in your account via its RA Earn program. That said; you need to have at least $10,000 in your account to be eligible for interest.
Is Bitcoin IRA Safe?
The simple answer to this question would be a definite yes. As we have previously mentioned, Bitcoin IRA collaborates with custodians and platforms regulated by the US and based there as well. To add to that, you can rest easy knowing that your assets are insured when under the company's custody.
BitGo Trust is the company entrusted with the same and it holds your assets in cold wallets or offline storage to keep hackers from accessing them.
Furthermore, Bitcoin IRA employs high-security measures to keep your financial details and identity safe. Surely, this should convince you that your assets will be safe with the company, no?
Benefits of Investing in Bitcoin IRA
You will get to enjoy several benefits when you decide to invest in Crypto using Bitcoin IRA. Here are some of them.
Investment Versatility- This kind of investment enables you to diversify your investment portfolio.
Perhaps you are not aware, but cryptocurrency is an excellent diversifier as far as your funds. Moreover, holding cryptocurrency makes you the owner of something special because you are more likely to survive inflation unlike with other investments.
High Potential for Gains- While there have been several drops in virtual currency, we can assure you that the returns involved with cryptocurrency outperform those in other markets. For your information, only about 21 million bitcoins exist. This translates to greater potential for gains seeing as there is a limited number.
Great Long-term Investment- Admittedly, cryptocurrency does fluctuate in price, but we cannot deny the fact that it has steadily grown since its inception in 2009. Because of that, you would benefit a lot from holding assets in the long-term by keeping them in an account that you will not access until you retire.
What Could be Better?
Bitcoin IRA does feature some shortcomings albeit a few. These include:
- The fees are quite high and this may exclude some people
- You are subjected to hefty penalties in case you want to access your assets before retirement
- Bitcoin is a highly speculative currency that makes it subject to instability, meaning that you could suffer a massive loss
Who is Bitcoin IRA for?
Is Bitcoin IRA a good fit for you? Well it is if you:
- Have at least $3,000 sitting in an existing retirement account
- Are interested in diversifying your retirement savings and be a step ahead of market fluctuations and inflation
- Want to invest tax-free
- Can withstand unpredictability in your retirement portfolio
How to Open a Bitcoin IRA Account
At this point, you have probably made up your mind regarding whether to open a Bitcoin IRA account. If you do, here is what you need to do to open one.
You will need documentation including your driver's license, birth certificate, and social security number before starting the process. The information about your funding account will also be required. If you intend to roll funds over, you will need to provide details about your custodian, account number, and how much money you will be moving.
For regular retirement accounts, Bitcoin IRA requires a $3,000 minimum. Earn accounts require a $10,000 minimum.
Bitcoin IRA Pricing
One of the things you will probably love most when it comes to Bitcoin IRA is that you will not be required to pay any commission on trades or transaction fees.
Depending on how much you invest, you will be required to pay a one-time service fee that is for covering account setup and rollover service. While at it, you will also pay security and custodian fees.
You also want to note that there are trade fees charging 1% for every transaction when it comes to selling orders and 5% for each buy order transaction.
It is easy to say that these fees are quite costly, but then again, Bitcoin IRA is a full-service company so you will be getting your money's worth.
The company encourages potential investors to reach out for more information about fees via email or phone call because they don't list all their current rates.
If you have decided to join the cryptocurrency bandwagon, Bitcoin IRA will be beneficial to you especially if you want to invest for your future.
It is also a great choice for any investor who wants to get tax savings and offers an excellent way to hold virtual money in a familiar kind of account.
With that in mind, we would certainly recommend the platform to anyone who is looking to secure their future and save a few coins when it comes to taxation.
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