Savvy investors realize the importance and value of portfolio diversification. They know that the state of the economy can change at the drop of a hat. That’s what happened during the Great Depression. And more recently, it’s what happened during the Great Recession beginning in 2008.
One moment everything seemed good and the economy was chugging on all cylinders. Seemingly out of nowhere, we were suddenly in the midst of a major housing crisis and a financial crisis. These sudden economic shifts wiped out many investors who were heavily invested in the stock market. It took years to eventually recover their losses if they were lucky.
Guess what? During the same timeframe, intelligent investors began looking for valid alternatives to the stock market. And many found precious metals as an incredible safe haven. In fact, if you timed it right you could have tripled your money in less than a year.
Since then, another powerful alternative investment has appeared on the scene. If you haven’t guessed yet, we’re talking about Bitcoin and other forms of cryptocurrency. And these digital assets have changed the game entirely.
From 2011 until now, tons of Bitcoin millionaires were born. Why? They were willing to take a chance on an exciting alternative investment that we’ll tell you all about below.
What is a Bitcoin IRA?
Bitcoin IRA investing consists of opening up and funding a self-directed cryptocurrency IRA account. You’ll have to open your IRA with a qualified and well-respected broker like Regal Wallet. Other crypto broker options include Bitcoin IRA and Bit IRA.
They’ll help you set up your IRA account so you can start investing in cryptocurrencies including Bitcoin, Ripple, Litecoin, and more potentially life-changing choices that we’ll tell you about below.
Serious investors recognize that times are changing. The current bull market in the US can only last for so long. And there are whispers that a recession is right around the corner.
Do you want to lose all of the value of your portfolio once again? Or would you benefit from making alternative investments that thrive in traditionally difficult financial environments?
Protect your retirement future today. Don’t delay any longer. And only deal with a trusted crypto IRA company like the companies mentioned above.
Self-Directed Bitcoin IRA Account Funding Options
Funding your cryptocurrency IRA has never been easier. In fact, there are three simple ways to fund this important account. And once you fund it, you can begin making alternative investments in crypto.
Your options include the following three choices:
- Funding via contributions – the contribution limits for self-directed IRAs are as follows for tax year 2020. If you’re below 50 years old, you can set aside $6000 of your earned income to fund the account. If you’re 50 years of age or older, you can fund it using $7000. At this age, the IRS allows an additional thousand dollars’ worth of catch up contributions. The catch is that you must have a minimum earned income of the amount you’re contributing.
- Funding via a rollover – in certain situations, you may decide to roll over a tax qualified account and turn it into a self-directed cryptocurrency IRA. As long as you follow all of the rollover rules properly, you will not suffer a tax liability. A direct rollover happens when your existing tax qualified account administrator or custodian directly initiates a trustee to trustee transfer. The money will never enter into your possession with this method. With an indirect rollover, your old admin or custodian will send a check directly to you. You have 60 days to deposit it into your new self-directed IRA account for funding. If you fund the new account within this timeframe, you will not have to pay taxes or penalties.
- Funding via a transfer – it’s also possible to fund your Bitcoin IRA account by performing a funds transfer. This transfer will take place from one custodian to another as long as it’s initiated from the same type of retirement account. Do you currently have money sitting in a traditional IRA account or a Roth IRA? You can have some or all of the funds transferred to your new cryptocurrency IRA. The great thing about transfers is you can initiate them as much as you’d like. Whereas a rollover is only allowed to take place once every 12 months based on a recent tax court ruling.
As you can see, it’s easier than ever to fund your self-directed Bitcoin IRA account. Click here to view our list of best cryptocurrency IRA companies.
Why Invest in a Non-Correlated Asset like Crypto?
Most people don’t know that cryptocurrency is a non-correlated asset. And since they do not know or understand, they fail to realize the benefits of this asset class.
The major benefit is its ability to withstand tumultuous economic forces. The stock market flies high or tanks based on the news of the day. If the news is grim and the economy suffers, you can bet that your stocks will lose value. Or, if the news looks great and the economy smells like a rose, your investments will likely gain value.
The US president, the Federal Reserve chairman, and other political leaders around the world can speak and drag markets through the mud. Crypto will never suffer because somebody opened their big mouth! It doesn’t suffer negative or positive consequences based on the news, the state of the economy, or other financial factors.
Even better, crypto is starting to gain traction throughout the world. Celebrities, investors, and powerful nations are all investing in Bitcoin, Ethereum, and other digital currencies. In fact, you’ll recognize many of these names. They include:
Big Brands Currently Accepting Bitcoin
Even better, some of today’s biggest brands are now welcoming Bitcoin payments as well. This currency and other forms of crypto are definitely gaining in popularity. The more popular they get, the more valuable they’ll be and the more your investments will gain value.
The major brands currently accepting Bitcoin as a form of payment include:
Clearly, Bitcoin and other forms of crypto are much more than just a passing fad. In fact, brilliant people like Bill Gates believe they are the future. These unregulated currencies are more stable than the US dollar, UK pound, etc. And they are more private, they’re safer, and you can use them online anywhere in the world.
Cryptocurrency Options: 7 Worthy Investments
All things considered, there are currently seven major players worth looking into as valid crypto investments. Each option that we’re about to mention has a proven track record and real interest.
- Bitcoin – arguably the most popular of the bunch, Bitcoin is well recognized and accepted around the world. It’s also the first decentralized digital currency in existence today. No central bank or administrator controls its fate. It’s available on a peer-to-peer network and it’s transferred between one user and another through cryptography.
- Bitcoin Cash – this digital currency exists because it split from Bitcoin on August 1, 2017. They initiated the split to increase the blockchain size limits to 8 Mb. It’s capable of processing more transactions than the original Bitcoin.
- Ethereum – this open sourced digital currency is blockchain based. It’s a decentralized currency and operates on EVM, otherwise known as the Ethereum Virtual Machine.
- Ethereum Classic – this type of crypto is just like the original but it has one major difference. The differences it uses the old blockchain instead of the new one. The value token is also different. Its value token is named “classic ether”, as opposed to just regular “ether”.
- Litecoin – this digital currency is also known as LTC. It operates on open sourced peer-to-peer software. There is no central authority monitoring it so it’s a decentralized currency. It was also inspired by Bitcoin, so it’s nearly the same from a technical standpoint.
- Monero – this cryptocurrency also goes by another name. It’s known as XMR and it was originally created in April 2014. It’s a private, scalable, open source, and decentralized type of crypto.
- Ripple – this option is called an RTGS, or real time gross settlement system. It uses the RTXP a.k.a. Ripple Transaction Protocol.
Just like every investment, Bitcoin IRA investing clearly has its hazards. This investment vehicle is speculative, volatile, and certainly risky. So please keep that in mind if you consider investing in cryptocurrencies in the near future.
We’ve seen Bitcoin skyrocket in value only to come plummeting back down to earth weeks later. But there is plenty of money to be made in a long-term perspective and it’s a great hedge against the stock market as well.
So do yourself a favor and take a chance on this investment. It can pay big dividends in the future if you’re willing to give it a try. Forget about short-term investing and consider a cryptocurrency IRA instead. It’s the safest and most effective way to earn big while solidifying your retirement future.