fbpx
+1-877-962-1133
·
info@howtoinvestgold.com
Disclosure: We may earn money from our partners when you click a link, complete a form, or call a phone number.
Read our full disclosure here.
Get Your FREE Gold IRA Guide

What Are Cryptocurrencies?

Cryptocurrency Guide - Why Invest In Cryptocurrencies Or Bitcoin?

Welcome to our Cryptocurrency Guide. Learn what cryptocurrencies are and why invest in crypto, benefits and risks investing in cryptocurrencies, how to find a licensed cryptocurrency broker, crypto IRA investing, and much more.

 
Regal Assets - The #1 Alternative Assets Company in the U.S.
 

Cryptocurrencies – The Digital Currency Of The Future


Cryptocurrency has been around since 2009 and has grown in popularity ever since. Cryptocurrencies like Bitcoin and Ethereum are viewed by many experts as the new digital versions of gold and silver.

Just like physical precious metals, cryptocurrencies do not correlate with the dollar and stock market and can serve as protection in case of an economic downturn.

Cryptocurrencies are totally decentralized and controlled by supply and demand. Bitcoin and Ethereum are “mined” by powerful computers and their supply is limited which nullifies inflation.

Ethereum, just like silver, has multiple industrial uses aside from being a currency. It is a smart contracts platform and its technology is currently being used by banks and governments worldwide.

Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manage and record transactions. Part of the appeal of this technology is its security.

Not everybody sees eye to eye on the benefits of this digital currency. Since it has no insurance or government endorsements such as FDIC or SIPC protection, and no national or international banking rate checks, some in the banking industry deem it to be a fraud.

However, many see cryptocurrencies as the digital currency of the future and are racing to buy them now, presumably before they become more valuable.

Part of cryptocurrency’s popularity among traders is also due to its volatility since these swings allow traders to make money on the price moves.

You can view a wide range of cryptocurrencies here.

Regal Assets' cryptocurrencies selection, Bitcoin, Ethereum, Ethereum Classic, etc.

Overview

Cryptocurrencies – The Digital Currency Of The Future

What Are Cryptocurrencies Used For?

What Are Cryptocurrencies Worth?

Benefits Investing In Cryptocurrencies

Risks Investing In Cryptocurrencies

Where Are Cryptocurrencies Stored?

Cryptocurrency Taxes

Finding Licensed Cryptocurrency Brokers

Crypto IRA Investing

Regal IRA – A Combination Of Precious Metals And Cryptos

What Are Cryptocurrencies Used For?


Like any currency, cryptocurrencies can be used to buy goods and services, but one of the most popular things people use cryptocurrency for is to build up an investment portfolio. Cryptocurrency is an alternative asset that adds diversification to your portfolio.

Also, the value of cryptocurrencies can increase and decrease so by investing in, for example, bitcoin, you have the potential to grow that investment even more and receive great gains from doing so.

Much of the interest in these unregulated currencies is to trade them for profit, with speculators at times driving prices skyward.
 


 

What Are Cryptocurrencies Worth?


Think of cryptocurrencies being like the stock market: its value goes up and down, depending on the day. Cryptocurrencies are totally decentralized and controlled by supply and demand. When the demand increases, the price follows, and the other way around.

Checking on the value of cryptocurrencies is an important step to take before committing to purchasing them. You want to ensure the specific cryptocurrency you are investing in is stable.

Benefits Investing In Cryptocurrencies


There are many benefits to investing in cryptocurrencies:

  • Cryptocurrencies remove central banks from managing the money supply which is beneficial since over time these banks tend to reduce the value of money via inflation.
  • Cryptocurrencies are seen as the digital currency of the future and are becoming more common for purchasing goods and services, as well as serving as an asset diversifier for investors.
  • Investors are racing to buy cryptocurrencies right now, presumably before they become even more valuable. It may be a good idea to invest and reserve your share of cryptos before it is too late.
  • The technology behind cryptocurrencies, the blockchain, is a decentralized processing and recording system that is more secure than traditional payment systems.

Risks Investing In Cryptocurrencies


Like with any investment, there are some risks involved with investing in cryptocurrencies:

  • With cryptocurrencies come an instability of values.  Extreme changes in price have happened in recent years. The bitcoin price spiked to nearly $20,000 in late 2017 and dropped to $10,000 in 2019. These wild changes in value increase the risks of using cryptocurrencies.
  • Not all businesses recognize digital currency as a form of payment (yet) so there may be an issue with a lack of acceptance.
  • Even with encryption to protect cryptocurrency transactions, there have been hacks resulting in substantial losses. This is why it is a good idea to invest in a crypto IRA, where your account is covered by a custodian (an entity that is licensed and regulated by the IRS. The custodian could be a bank, credit union, trust, or another company called a non-bank custodian).

 
Request the FREE investors kit from Regal Assets - the #1 alternative assets company 10 years in a row
 
What are cryptocurrencies and what are they used for? Benefits and risks of Bitcoins, Crypto IRA investing.

Where Are Cryptocurrencies Stored?


The term for the storage for cryptocurrencies is called a wallet, which is software that encrypts your account information and tracks your currencies. Some wallet companies are now providing self-contained hard drives, much like a thumb drive, that holds all of your account data and encryption.

You can also store your cryptocurrencies in a crypto IRA or a bitcoin IRA account. Find out more information about crypto IRAs here.

Cryptocurrency Taxes


In most countries (the U.S. included), cryptocurrencies are treated as property for tax purposes, not as currency. Just like other forms of property—stocks, bonds, real estate—you incur a tax reporting requirement when you sell, trade, or otherwise dispose of your cryptocurrency for more or less than you acquired it for.

When investing in cryptocurrencies through a crypto IRA, you can avoid a lot of the tax consequences that exist when trading crypto normally, which is very powerful.
 

BullionVault - Buy gold online today at live gold prices

 

Finding Licensed Cryptocurrency Brokers


It is crucial that you buy cryptocurrencies from a reputable company that is a licensed cryptocurrency broker. There are quite a few out there but our #1 recommendation is Regal Assets. Regal Assets is a top rated crypto or alternative assets IRA company, where you can choose from a wide selection of cryptocurrencies and precious metals.

Regal Assets is the first company in the industry to receive a crypto trading license and is also one of the first companies to offer all major crypto assets and precious metals as part of a retirement account, not just bitcoin.

Crypto IRA Investing


Crypto IRAs, also called bitcoin IRAs, have become a  popular way to invest in the emerging cryptocurrency asset class while simultaneously reaping some tax benefits that are commonly associated with retirement accounts.

In a standard Individual Retirement Account (IRA), individuals can keep their investments in traditional securities such as stocks, bonds, and money market funds. Crypto IRAs provide an additional option for investing in cryptocurrencies such as bitcoin or ethereum.

Crypto IRA accounts are 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.

Regal IRA – A Combination Of Precious Metals And Cryptos


 

Regal Assets - Free Investors Kit

Regal Assets has combined the must-have precious metals with alternative assets such as cryptocurrencies to take portfolio diversification to another level. A Regal IRA is the world’s first alternative assets IRA that currently allows you to invest in both hard assets (precious metals) and digital assets (cryptocurrencies).

What is the benefit of including both precious metals and cryptocurrencies in a Regal IRA you may think? Well, experts have discovered that there is an inverse correlation between gold and bitcoin. This means that as one goes up in value, the other tends to go down.

Regal Assets’ CEO Tyler Gallagher is quoting:

“This is why gold and bitcoin make a perfect combination of assets to include in your retirement portfolio – because they balance each other out.”


Find more information about Regal IRAs here.
 
Request the FREE investors kit from Regal Assets - the #1 alternative assets company 10 years in a row
 

NOTE: Cryptocurrencies are still viewed as a high-risk investment so do NOT invest any sum of money that you could not afford to lose. The content on this website is for information purposed only and cannot be taken as financial advice. Always speak to your financial advisor before making any investment decision.

Frequently Asked Questions & Answers

What are cryptocurrencies?

Cryptocurrencies are a form of digital currency that are “mined” by powerful computers. Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manage and record transactions.

Why invest in cryptocurrencies?

Cryptocurrencies like Bitcoin and Ethereum are viewed by many experts as the new digital versions of gold and silver. Just like physical precious metals, cryptocurrencies do not correlate with the dollar and stock market and can serve as protection in case of an economic downturn. Cryptocurrencies are totally decentralized and controlled by supply and demand. Bitcoin’s supply is limited just like gold which nullifies inflation.

What are cryptocurrencies used for?

Like any currency, cryptocurrencies can be used to buy goods and services, but one of the most popular things people use cryptocurrency for is to build up an investment portfolio. Cryptocurrency is an alternative asset that adds diversification to your portfolio.

Where are cryptocurrencies stored?

The term for the storage for cryptocurrencies is called a wallet which is software that encrypts your account information and tracks your currencies. Some wallet companies are now providing self-contained hard drives, much like a thumb drive, that holds all of your account data and encryption. You can also store your cryptocurrencies in a crypto IRA or bitcoin IRA account which is held by a custodian for safekeeping.

Do I have to pay taxes when trading my cryptocurrencies?

In most countries (the U.S. included), cryptocurrencies are treated as property for tax purposes, not as currency. Just like other forms of property—stocks, bonds, real estate—you incur a tax reporting requirement when you sell, trade, or otherwise dispose of your cryptocurrency for more or less than you acquired it for. However, when investing in cryptocurrencies through a crypto IRA, you can avoid a lot of the tax consequences that exist when trading crypto normally which is very powerful.

Why invest in a crypto IRA?

A crypto IRA allows you to hold digital assets like bitcoin (and precious metals if you so choose) in a self-directed IRA, while simultaneously reaping some tax benefits that are commonly associated with retirement accounts. Crypto IRAs provide an additional option for investing and for portfolio diversification. It is also a safer investment since crypto IRA accounts are covered by custodians.

What is a Regal IRA?

A Regal IRA is the world’s first alternative assets IRA that currently allows you to invest in both hard assets (precious metals) and digital assets (cryptocurrencies). Regal Assets has combined the must-have precious metals with alternative assets such as cryptocurrencies to take portfolio diversification to another level.

Best Gold IRA Companies

Gold IRA Companies We Recommend

Best Gold IRA Companies – There has never been a better time to invest in gold than today. With the ease of setting up a gold IRA, you can go from worrying about your retirement savings to complete confidence in the security of your wealth before you know it. But choosing the right precious metals company to invest with can be extremely difficult unless you know what to look out for.

When reviewing gold IRA companies its critical to compare the ratings and reviews by looking at independent authority sources. We look at the scores given by using 5 independent rating sources that include the Better Business Bureau, Business Consumer Alliance, TrustLink, TrustPilot, and Ripoff Report.

We have looked into Goldco Precious Metals and Regal Assets which are both top rated gold IRA and alternative assets companies.

Regal Assets Regal IRA

#1 Rated Alternative Assets Company
$250/ Yr
  • Minimum Investment $10,000
  • Cash Sale Minimum $5,000
  • Waived Fees For 1st Year
  • Combines Metals & Crypto
  • Oustanding Client Ratings
  • No Sales Approach
Learn More

Goldco Gold IRA

Best Overall Precious Metals Company
$260/ Yr
  • Minimum Investment $20,000-$25,000
  • Cash Sale Minimum $3,500
  • 10% Back In FREE Silver
  • Easy IRA & 401(k) Rollovers
  • A+ rating by the BBB
  • Outstanding Customer Ratings
Learn More

 
Please feel free to reach out if you have any questions about the content of this website. If you believe something is explained incorrectly, please send us an email at info@howtoinvestgold.com.


Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase.
About How To Invest Gold

Our Mission

Our mission is to provide investors and retirees all the information they need when it comes to precious metals and cryptocurrencies investing. We aim to provide a complete guide on the best ways to invest in gold, silver, and crypto.

Gold backed IRA - Goldco, Regal AssetsWe believe that investing in precious metals and cryptocurrencies through your IRA or 401(k) is one of the best ways to invest in this asset class, due to the tax-saving component. A gold or crypto IRA is the best way to protect your retirement account and adds financial insurance.

Whether you are interested in gold coins, pure minted bars, EFTs, or gold mining stocks, you will find the information you need on this website to get started on the right foot.

Want to talk to a Crypto IRA Expert?

Give us a call: 1-877-962-1133

Subscribe To Our Newsletter