Are you ready for the ride of a lifetime? Are you ready to finally grab the future by the scruff of its neck and take control of your investments? Bitcoin shocked the world in 2009 and set us on a trajectory that no one ever expected. The anonymous creator of this currency showed the world that we aren’t reliant upon governments for the accumulation of wealth.
We can ignore the Federal Reserve, the United States Congress, the British Parliament, and every bigwig looking to control us. With digital cryptocurrencies, we have an entirely new way of paying for goods and services online. And even though it’s happening on a smaller scale, you can pay for things with crypto in regular retail outlets. This will expand even further as cryptocurrency continues to breach the Zeitgeist.
Are you a leader or are you a follower? Are you ready to step into the unknown with futurists and technicians that recognize crypto’s massive potential? Or will you remain on the sidelines as the US government continues to trash the US dollar into oblivion?
It’s time to take steps to preserve your wealth. It’s time to learn how to invest in cryptocurrency. And by the time we’re through I’ll tell you all about my favorite investment method which is the cryptocurrency IRA.
Gaining a Better Understanding of Cryptocurrency
Cryptocurrency was developed through the invention of blockchain technology. This represents an information chain of distribution and registration that isn’t under the specific control of any institution. Overall, blockchain will record transactions that take place digitally and it has full autonomy from central banks.
Are you a technical person? If so, you may want to learn about the technical details that fuel blockchain technology. You may find it fun and enjoyable, but I know most people aren’t interested and they don’t need to be.
It all boils down to this…
Blockchain gets rid of the middleman entirely – a.k.a. the bank. And it gives buyers and sellers a chance to initiate transactions between each other. This alone is one of the major reasons why a cryptocurrency IRA is so attractive.
Of all the cryptocurrencies, the most popular option is Bitcoin. But it isn’t the only option like so many people think. There’s also Ethereum, Litecoin, Ripple, NEO, Stellar, Bitcoin Cash, IOTA, and Cardano, to name a few popular ones. Depending on your personal objectives, you may decide to invest in one or all of these currencies.
For the most part, people seem to be attracted to cryptocurrency for two major reasons that include:
- When you own crypto you own it anonymously and use it anonymously as well.
- Even though it’s a currency, it trades like an investment and the price action tends to explode at times.
So, now that you understand the juiciest advantages of cryptocurrency investing, how should you get in on the action? We’ll discuss the available platforms and help you choose your cryptocurrency. We’ll also and share the best way to get started with a cryptocurrency IRA.
Choosing a Cryptocurrency Platform
Right now I’m going to tell you how to buy crypto the traditional way. This is by far my least favorite way of buying crypto. Why? You miss out on the amazing tax breaks that a cryptocurrency IRA has to offer. But this article is supposed to teach you how to invest in crypto so that’s what I’m going to do. Use this information at your own discretion.
And remember that the IRS is giving you a tax-free gift that you shouldn’t ignore. It’s called the cryptocurrency IRA and it’s a beautiful way to invest. My favorite crypto broker is Regal Wallet. Click here to read my detailed review.
Getting back to the question at hand…
It’s nearly impossible to buy cryptocurrencies in the typical places that you’d buy other types of investments. You can’t walk into a bank yet and buy crypto, although that may change in the future. The same thing is true with many traditional investment brokerages. Robinhood and Webull are two exceptions to the rule at this point. And more brokerages will eventually jump on the bandwagon because this is a hot commodity.
On average, the best way to purchase Bitcoin outside of a cryptocurrency IRA is through a dedicated cryptocurrency exchange.
The major dedicated cryptocurrency exchanges include:
When you consider these exchanges, look at them the same way you’d look at a brokerage firm. They’re like a brokerage designed specifically to trade cryptocurrency. Each one of these exchanges makes it possible to trade the most popular cryptos like Bitcoin and Ethereum.
And as mentioned above, investment brokers are beginning to enter the fray. Robinhood was the first stockbroker to jump on the cryptocurrency bandwagon. Webull, another trading app, was soon to follow. On these brokerages, you can purchase ETFs, options, stocks, and cryptocurrencies without paying commissions.
It’s possible to buy and sell cryptocurrency directly with another trader. But you’ll need a way to store them if you’re going to choose this route. I’ll tell you more about cryptocurrency storage below.
An Explanation of Cryptocurrency Storage & Storage Options
The usual way to store cryptocurrency is to keep it safe in a cryptocurrency wallet. There are a wide range of wallets available at this time, so this topic is complicated. But I’ll do my best to share the plain and simple facts with you today.
A wallet to store cryptocurrency is basically a software program that stores the public and private keys connected to your blockchain. This is where your cryptocurrency exists. In truth, a crypto wallet doesn’t actually store cryptocurrency since its digital. Its function grants you access to the blockchain containing your public and private keys, also known as your cryptocurrency address. You need both keys to initiate and complete transactions using cryptocurrency. They named them keys since they unlock the blockchain containing your cryptocurrency.
Besides granting access to your keys, this digital wallet stores a record of your blockchain transactions. And it also lets you see your current cryptocurrency balance.
Cryptocurrency Wallet Types
There are a few types of digital wallets that you can use to store your cryptocurrencies. The popular options include:
- Mobile wallets – the name suggests it all. This wallet is an app that you will have located on your smart phone, tablet, or other smart device. It gives you a distinct advantage because you can use it outside at stores that accept cryptocurrencies.
- Desktop wallets – the name is fairly self-explanatory. This type of wallet is one that you will install on your PC or Mac desktop. By storing it on your personal computer, the information will stay much safer than it will in an online wallet.
- Online wallets – these wallets are safely stored in the cloud. You can access your cloud-based wallet from numerous computing devices. Although it’s a convenient choice, with this option you have to allow a third party to control your private key.
- Hardware wallets – with this type of wallet, your private key gets stored on a hardware device. The most obvious type of device is a USB drive. This is a very secure way to store your private key. You are keeping it on your person and not storing it online. A hardware wallet also gives you the ability to access your crypto from numerous devices.
Getting the Biggest Bang for Your Buck When Buying Cryptocurrency
At this stage of the game, I’d like to tell you about investing in a cryptocurrency IRA. This investment vehicle is the ideal choice. Why? It allows you to invest in a tax-deferred or tax-free manner depending on how you set up your IRA account.
The major benefits of investing in a cryptocurrency IRA is as follows:
- Major tax advantages – as I mentioned already, investing in digital currencies is a great way to add value to your portfolio. But there’s a better way to invest in crypto than just purchasing it out right from a typical exchange. The IRS looks at cryptocurrency very similarly to the way they look at property regarding taxes. You can open a traditional crypto IRA and contribute pretax dollars. You will not pay taxes until you withdraw the funds. Or you can open a Roth crypto IRA and make after-tax contributions. In this account, everything earned is yours because the taxes were paid ahead of time.
- Diversifying your portfolio – it’s never wise to keep all of your eggs in one basket as financial advisors are apt to remind us. By investing in a cryptocurrency IRA, you are diversifying your investments and minimizing your risk. Even better, cryptocurrency tends to rise in value as the US dollar falls. This is a great hedge against the current economic problems facing the US right now.
Regal Wallet: The Cryptocurrency IRA Champion
I love Regal Wallet. There is no denying it.
This company is great because:
- They have the highest ratings with the Business Consumer Alliance and the Better Business Bureau.
- Regal Wallet offers everyone access to a free Bitcoin IRA investor’s kit.
- They open cryptocurrency IRA accounts within 24 hours.
Find out more about Regal Wallet today. Please check out my full Regal Wallet company review on this website.
Thank for this article it is a good insight in crypto. It is a controversial topic to me, in the sense that I always try to stay updated when it comes to cryptocurrencies, but the reality is that I never feel that I fully understand what is going on. I’ve even invested a few dollars in crypto, but really I don’t feel as sure of my knowledge as it happens with more ‘traditional’ investments.
Hello Rosalia! Investing in cryptocurrencies is a good idea if you plan to do it for the long-run and invest in a cryptocurrency IRA. Cryptocurrencies have been growing in value, particularly Bitcoin and the cryptocurrencies on Coinbase since their beginnings and experts predict that they will continue to grow in value in the future as its popularity grows and more investments come in. Thank you for the feedback, Rosalia!
What a great deal of information that you have given out in this awesome and interesting article I must give you a big thumbs up… I encountered an article like this on the internet and it changed my knowledge about investing in Cryptocurrency and gave me a new system to approach Better Understanding of Cryptocurrency…I invest in cryptocurrency by joining the CoinDesk platform to earn a certain amount of money every month. Thanks a lot for sharing.
Hello Asraful! I’m glad that you’re also investing in cryptocurrency. Don’t lose hope and make sure you’re investing in it for the long run. If you were in the US, I would recommend opening a cryptocurrency IRA. Thank you for the compliments and the feedback, Asraful!
The only two cryptocurrencies that I am familiar with are bitcoin and ethereum.
I do find cryptocurrency a very confusing, and at the same time interesting, area. Maybe it is because I have not held or seen an actual coin, so it seems surreal, but that is what being a digital currency is all about.
So it is a field that I find confusing and therefore also reluctant to put money into without having more guarantees in my returns.
Hello LineCowley! I would only recommend investing in cryptocurrency (such as Bitcoin and Ethereum) if you are going to do it for the long-run and in a cryptocurrency IRA. Cryptocurrencies such as Bitcoin and Ethereum have been rising in value since their beginnings and are predicted to continue to do so in the future. Thank you for sharing your thoughts on cryptocurrencies and the feedback, LineCowley!
When you talk about cryptocurrency you often get a mixed response. Some people are intrigued other are against anything remotely associated with it and start crying scam at the earliest opportunity. I am one of the people who are intrigued and I want to know more and get involved in the best opportunity I can. This article is very enlightening and will help me make a decision
Hello Castle! Yes, there is a mixed reaction with people when it comes to cryptocurrency but those who are more informed know that it is the right investment opportunity to make in this era. Thank you for the compliments to my article and I hope you make the best decision for your portfolio in the near future!
Bitcoin got my attention just recently when it surpassed 11K and it even almost surpassed 12K (but then went back down again to kinda 11,200s). I said to myself, well, I think it’s time to diversifying my portfolio. I’m glad I found your post. It’s really easy to follow, even if were newbies into the crypto space. Thanks!
Hello Paolo! Yes, Bitcoin is on the rise and in the long-run it should only go up more and more. That’s why I recommend investing in Bitcoin through a cryptocurrency IRA. It’s the best way to invest in cryptocurrency through tax-free means. Thank you for the compliments to my article and website as well!