We all want a safe, secure platform that guarantees high returns on our capital when it comes to investing. Chances are good that you have spent more time than you’d like to admit comparing different types of IRA accounts for retirement or meticulously watching minute-by-minute movements of a sideways-trailing stock. If you’re looking for exciting action nowadays, one word should come to mind—cryptocurrency. More specifically though, Bitcoin. Bitcoin has been heralded as one of the biggest money-making opportunities of the 21st century so far.
Many have invested their hard-earned capital and cash in on this trend.The following article will provide a detailed bitcoin IRA review thay you need to know about this investment opportunity.
What is Bitcoin IRA?
Bitcoin IRA is a self-directed IRA that trades in Bitcoin instead of the traditional IRA where you trade in stocks. A traditional Bitcoin IRA allows you to make contributions on a pre-tax basis, thereby lowering your taxable income for the year. When you withdraw money from a traditional IRA account, you will have to pay taxes on it. A Roth Bitcoin IRA, on the other hand, allows you to make contributions on an after-tax basis. You will not deduct your contribution from your taxable income for that year but when you withdraw from your account during retirement.
Opening a Bitcoin IRA Account
The process of opening a Bitcoin IRA is straightforward. First, you open an account with a custodian who will provide you with a Bitcoin account and a platform to buy and sell cryptocurrencies without any restrictions. Once you are done with the registration process, you fund your account using a rollover or transfer from another retirement account such as the traditional IRA. You can also use your existing retirement account and transfer it to Bitcoin IRA to start investing in Bitcoin.
Bitcoin IRA is Self-Directed
One of the best features of the Bitcoin IRA is that it allows for self-direction. This means that you are in charge and have free reign over your account. You can choose to use a different custodian and trade in your preferred cryptocurrencies.
Bitcoin IRAs Create a Diversified Portfolio
For those who invest in Bitcoin IRAs, their portfolios are diversified. With this type of portfolio, you do not put all your eggs in one basket, as you can invest in various cryptocurrencies that perform differently at different times. Compared to traditional IRAs, the Bitcoin IRA has higher returns, which makes it more lucrative than other types of investment plans.
Security and Safety of Assets
When you invest in Bitcoin, you do not need to worry about the safety and security of your assets. All Bitcoin transactions are done through blockchain, and blockchain technology makes it difficult for hackers to access your accounts or information.
Traditional IRAs incur high charges involving several parties like brokers, banks, and other financial institutions. As such, the cost of investing in these accounts is relatively high compared to Bitcoin IRAs. Also, Bitcoin is borderless and can be transferred anywhere without incurring any fee like currency conversion charges.
Invest In Bitcoin IRA Today
You do not have to pay taxes on capital gains in your Bitcoin account. You can save money by investing in Bitcoin. With Bitcoin IRAs, you can control your account because it is self-directed. You can make all your investment and trading decisions without any interference from a third party.