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Thanks for visiting our crypto IRA guide. In this guide, you will learn everything you need to know about a crypto IRA and how it can help the value of your retirement savings skyrocket.
If you want to jump straight to any of the sections, you can use the guide below:
Alright, let’s dive into the nitty-gritty of what a crypto IRA is and how this incredible asset class can help grow your wealth next.
A Crypto IRA, also called a Digital IRA, is a self-directed individual retirement account (IRA) that allows you to include XRP and various cryptocurrencies in a single retirement portfolio, while simultaneously reaping the tax benefits that are commonly associated with retirement accounts.
In a standard IRA, individuals can keep their investments in traditional securities like stocks, bonds, and money market funds. But in a crypto IRA, you can hold various alternative assets, such as precious metals, real estate, and more. Additionally, certain companies also allow you to combine cryptocurrencies and precious metals.
War, soaring inflation, increasing gas prices, and interest rate hikes are all hitting the wallets of everyday Americans, and millions of workers and investors are watching their retirement savings disappear as the stock market continues to be jumpy and unpredictable. Cryptocurrencies like XRP and XML could help the value of your retirement savings skyrocket.
Right now, there is also a great opportunity to buy the dip and enjoy the predicted bull run!
Starting a crypto IRA or digital IRA is as easy as 1-2-3. In fact, you can even rollover or transfer your existing IRA or eligible employer-sponsored account, such as a 401(k), into a crypto IRA account (more information about the rollover and transfer process below).
Cryptocurrency is an alternative asset that adds diversification to any investor’s portfolio and can serve as an inflation hedge. And with persistent high inflation, you need to move your money to assets not governed by the dollar.
Typically, both cryptocurrency and precious metals move in the opposite direction of the dollar and will protect your hard-earned retirement savings from dollar depreciation.
A crypto IRA allows you to protect and grow your savings with a plethora of different assets, 100% tax and penalty-free.
By using a secret IRS loophole, you can legally add cryptocurrencies and other highly reliable assets such as precious metals, real estate, and more to your retirement savings completely tax-free.
A crypto IRA is a great investment because conventional IRAs based on stocks, bonds, and mutual funds are highly vulnerable in the case of a stock market crash or rising inflation. But when investing in a crypto IRA, you will not only protect your retirement savings against a possible stock market crash or inflation, but you will also add diversification to your portfolio and strengthen its value.
The fact that crypto IRAs remove central banks from managing the money supply is a critical aspect of hedging your savings. Over time, these banks tend to reduce the value of money via inflation.
A crypto IRA offers you tax-free growth, meaning that as long as you do not make any withdrawals from your retirement account, any gains made by the tokens held within it are tax-deferred.
Yes, when investing in a crypto IRA or digital IRA, your account is covered by custodians who manage self-directed accounts. An IRA custodian is a financial institution that holds your account’s investments for safekeeping and sees to it that all IRS and government regulations are adhered to at all times.
Specifically, the custodian could be a bank, credit union, trust, or another company called a non-bank custodian.
There has never been a better time to invest in cryptocurrency and other alternative assets like gold and silver. But you need to know which company to choose that has your best investment needs in mind and will ensure your assets are safely stored and protected.
To make the selection process easier for you, we have reviewed crypto IRA companies and listed our best option:
Our recommendation for crypto IRA company is BitIRA—a sister company to the top-rated gold IRA company, Birch Gold Group. The Company was founded in 2017 and was one of the first companies in the US to allow investors to add cryptocurrency to their 401(k)’s and similar retirement accounts.
It quickly became one of the nation’s leaders, focusing on helping people diversify their assets and skyrocket their wealth. Unlike many other crypto IRA providers, BitIRA works with the most reputable and non-hackable IRA custodians to keep your assets safe and secure.
In addition, BitIRA also developed a non-IRA offering in January of 2018, enabling investors to trade cryptocurrency within their crypto portfolio.
Whether you’re a beginner in cryptocurrency and want to roll over an underperforming 401(k) account, or an experienced investor not wanting to miss out on the tremendous growth potential of crypto, BitIRA will help you with all your investment needs. With BitIRA, you can have peace of mind that your cryptocurrency will be safely secured at all times while helping your assets grow in value.
Additionally, if you want to learn more about cryptocurrency investing before opening a crypto IRA, we recommend that you check out the best cryptocurrency education platform available, Decentralized Masters. They offer different training and mentorship programs that will teach you everything from the best coins to invest in to which platforms to use.
Investing in precious metals and cryptocurrencies through an IRA has to be done in accordance with the IRS rules and regulations, which is why it is important to work with a company that has a good track record working with these types of accounts. Simple mistakes, like not buying the correct coins that are approved for IRAs or providing incorrect tax documents, can cost a lot of money in the long run.
That said, you can open a crypto IRA directly, or you can rollover or transfer funds from a previous retirement account into a new crypto IRA account. If this just felt like the tip of the iceberg, and you want more information, we recommend that you read our in-depth review of Birch Gold Group’s sister company BitIRA.
On a final note, gold, XRP, and a few other cryptocurrencies make a perfect combination of assets because they balance each other out. As one goes up in value, the other tends to go down. That way, you are not only diversifying your assets, but you are diversifying smartly!