Bitcoin is the world’s first cryptocurrency and it has changed the way people see money. Indeed, many people have become millionaires thanks to Bitcoin, particularly those who purchased their coins in 2010 and 2011. In 2017, bitcoin boomed again, as did Ethereum, and more millionaires were made. Cryptocurrencies are now so popular that it is even possible and legal to invest in them for your retirement. However, this is still quite a new concept so if it is something that interests you, it is vital that you know how to find the best bitcoin IRA.
Why Do People Search for the Best Bitcoin IRA?
All investments are risky and this is certainly true for bitcoin as well. Indeed, one of its greatest problems is that it is tremendously volatile. At the same time, many have been able to become very rich as a result of these currencies. Those who are clever with money know that getting rich quick is pretty much impossible. However, that does not mean that Bitcoin should be dismissed. Rather, they see it as a great way to secure their financial future and to do so with various tax benefits as well. That is what can be done with a bitcoin IRA.
Bitcoin IRA is something quite different from the traditional IRA. Specifically, it allows you to not just invest in real estate, bonds, stocks, and other traditional options, but to also add both bitcoin and ethereum to your account. In order to be able to do so, however, you must open a self directed account. That means that you are the one who makes the decisions in terms of what to invest in and to what amount. That being said, you can choose yourself whether to have a Roth IRA or a regular rollover IRA.
Opening a cryptocurrency IRA will offer you a number of fantastic benefits. Those include:
- That the IRS approves these retirement accounts.
- That cryptocurrencies are inflation resistant. You don’t have to worry about a crisis in the stock market or real estate bubble. They are a very safe investment haven.
- That a bitcoin IRA also allows you to invest in more traditional options such as stocks and bonds.
- That you can choose your type of IRA, be that Roth, traditional, or rollover.
- That you can enjoy all the tax benefits and IRA offers you regardless of how much you invest in cryptocurrencies.
If you are interested in securing your financial future by investing a percentage of your retirement funds into cryptocurrencies, then it is very important that you find a custodian that is experienced in offering this, and one that focuses particularly on the security of your bitcoin wallet. Perhaps the only downside of Bitcoin is that, if they are stolen, you have lost them forever. That is because transactions cannot be traced back to a specific individual and they can never be reversed. Hence, make sure you investigate the security offered by your custodian above all else.