If you’re interested in investing in cryptocurrencies such as Ethereum and Bitcoin and are curious about some of the unique benefits of investing funds in a cryptocurrency IRA account, simply continue reading.
The benefits of investing in Cryptocurrency IRA:
You can use your 401 k savings to fund your cryptocurrency investments
One of the easiest ways to fund your cryptocurrency investments is to ask your chosen IRA custodian to help you transfer some of your 401 k funds to pay for your cryptocurrency investments. Just be careful not to transfer too large of a proportion of your 401 k funds as it’s always advisable to diversify your investments, instead of keeping all of your eggs in a single basket.
Investing in cryptocurrency IRA is a far easier process than you might think
If you’re happy enough to hire an IRA custodian to manage your IRA funds, you won’t have to worry about the legality of investing in IRA as your custodian can handle all of the legal obligations of investing in IRA for you. Which means that you won’t have to worry about owing the IRS money or getting into legal trouble by failing to ensure that your IRA account meets all of the IRS’ legal standards and regulations.
All you have to do is to fill out a simple to follow online IRA application form and to apply to have some of your 401 k funds transferred, in order to pay for your cryptocurrency investments.
Investing in a cryptocurrency IRA account is 100% legal and is actively encouraged by the government
Investing in a cryptocurrency IRA account is 100% legal. Better yet, the government actually encourages citizens to invest in IRA accounts as they offer a few tax incentives to sweeten the deal for potential investors. One key example of which are the tax breaks offered by IRA accounts. You may be surprised to read that if you choose to purchase cryptocurrency stocks in a digital currency such as Bitcoin or Ethereum, you won’t have to pay tax on your investment. You will, however, have to pay tax on your profits, when you first decide to withdraw funds from your cryptocurrency based IRA account.
Cryptocurrencies are, generally speaking, stable investments
While there are always risks associated with investing, cryptocurrencies are generally stable investments. As an example, Bitcoin which is the most well known of cryptocurrencies was launched in 2009 and has consistently increased in price over the past 7 years. So if you’re looking to invest in a relatively stable investment which is unlikely to crash overnight, then it’s well worth considering investing in cryptocurrencies. In order to diversify your investment risk, you may also want to consider investing in multiple cryptocurrencies instead of investing in a single cryptocurrency. If in doubt, you may want to start off by investing in Bitcoin as well as a newer cryptocurrency such as Ethereum.
So if you’re convinced that investing money in an IRA cryptocurrency account is the way to go, there’s no better time than the present to get in touch with a cryptocurrency custodian!