How to Invest in a Cryptocurrency IRA

crypto IRA how to invest

Introduction

Since you’re reading this, you already know the value of investing in cryptocurrencies like Bitcoin, Ethereum, and more. But you may be shortchanging yourself if you’re investing in these awesome digital currencies outside of an IRA.

The benefits of jumping on the crypto IRA bandwagon are stupendous. Some of the killer highlights include:

  • Tax-free or tax-deferred investing
  • Massive growth potential
  • Lowering your yearly taxable income
  • Flexible investing strategies outside of the norm
  • Earlier access to retirement funds

Clearly, you can’t access these benefits unless you invest through a self-directed IRA account. For starters, it’s a great way to experience long-term growth. But it will help minimize your exposure to the US dollar too. You can’t go wrong in either case.

Researching the Top Online Cryptocurrency Companies

You’ve decided to invest in a Bitcoin IRA. It’s now time to choose the right cryptocurrency company to meet your needs.

Remember, not all companies are created equally. As a matter of fact, some companies are going to be a lot better than others across the board.

Do you know what to look for when choosing a broker? If not, pay close attention to the following checklist:

  • Industry accolades – it makes sense to choose a company with many accolades in their industry. This means that they are highly respected by their peers. It also means they do an excellent job for their clients.
  • Excellent customer reviews – you should always find a cryptocurrency IRA company that has many happy customers. This proves that they go above and beyond to help meet their clients’ needs. It also proves that others have had a good experience doing business with them.
  • Knowledgeable staff – you’re likely going to have many questions as you become an avid cryptocurrency IRA investor. Whatever company you choose must have a knowledgeable staff available to answer your inquiries and concerns. They must understand cryptocurrency IRAs like the back of their hand. And they should have the information and know-how to successfully answer your queries and put your mind at ease.
  • Speedy account setup – unfortunately, some crypto IRA brokers take forever and a day to set up your IRA account. In reality, they could take as much as 30 to 60 days to get your account ready to begin investing. Other more successful companies can have your account set up within 24-48 hours. Dealing with a company that works faster means you can begin investing for your retirement future quicker and longer.
  • Cryptocurrency buyback program – every so often, you may run into a real financial problem and need access to cash quickly. Dealing with a broker that has a buyback program in place means liquidating your position fast. It means putting cash in your pocket at a moment’s notice to solve life’s many problems. Brokers without a buyback program aren’t as effective.

Use the information in this checklist to determine the right cryptocurrency IRA company to meet your needs. This invaluable information will support you to find a great company to help you get started investing in no time.

Funding Your Cryptocurrency IRA

To get started, you’ll have to fund your IRA account via rollover or transfer. These two options are the main ways to open a cryptocurrency IRA.

This may seem complicated if these terms are unfamiliar to you. But nothing could be further from the truth. The processes are as follows:

  • Funding a crypto IRA via rollover – in this case, you have an existing 401k account that you intend to close. Maybe you no longer work for your old boss and prefer to close this retirement account. Or maybe you love the idea of investing in cryptocurrencies and have an old account laying around. You should contact the administrator of this account and let them know about the rollover. They will mail you a distribution check that you must deposit into your new crypto IRA account within 60 days. Otherwise, you’ll have to pay taxes and early withdrawal penalties. Let the cryptocurrency company know about your desire to rollover an old 401k account. And they will help you through this process every step of the way.
  • Funding a crypto IRA via transfer – the transfer process is different than funding a cryptocurrency IRA via rollover. Basically, this type of funding happens when you transfer funds from one IRA account to another. The cool thing about transfers is they can happen all the time without restrictions. Rollovers are only allowed to legally take place once every 12 months. Contact your current Roth IRA or traditional IRA custodian and tell them to transfer money to your new crypto IRA. Give them the contact information of your new Bitcoin IRA custodian and the two professionals will handle everything. They’ll do this without further involvement on your part.

As you can see, it’s a lot easier to fund a Bitcoin IRA account then you may have originally imagined. Just make sure to choose a well-respected and knowledgeable cryptocurrency company and everything will flow smoothly from there.

The Best Cryptocurrencies to Add to a Bitcoin IRA

Some cryptocurrencies are more popular than others. And some have better financial backing from major companies, institutions, and governments.

The choices of crypto that you should absolutely trust as solid investments include:

  • Bitcoin
  • Bitcoin Cash
  • Ethereum
  • Ethereum Classic
  • Litecoin
  • Monero
  • Ripple

Each one of these cryptocurrencies has an excellent reputation. High profile investors and celebrities including Ashton Kutcher, Mike Tyson, Gwyneth Paltrow, and Bjork recognize the power of this investment.

The Bottom Line

So many people thought that Bitcoin and other cryptocurrencies were a passing fad. And then the coronavirus hit. And suddenly geopolitical turmoil hit many powerful nations.

Your Fiat currency isn’t nearly as safe as it once was. It’s time to begin investing in crypto to diversify your portfolio and protect your retirement future.

This investment is:

  • Decentralized
  • Limited in supply
  • A hedge against the US dollar
  • A way to protect against inflation
  • An incredibly hot trend at the moment

This all adds up to a powerful growth investment. Do yourself a favor and jump on the Bitcoin bandwagon and begin investing in other cryptos sooner rather than later.

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