Are you finally on the verge of investing in crypto? You undoubtedly watched Bitcoin trade higher than $9,000 recently heading toward $10,000 again. You aren’t willing to miss the next move.
In fact, you understand the long-term appeal of cryptocurrency investing because it’s the future of currencies. Even though it’s about 10 years old, this form of currency is still in its infancy. And being in its infancy, there’s plenty of room for growth.
At this stage of the game you’re wondering about the best way to get started. Buying Bitcoin on Coinbase seems like a popular choice. And it’s the way many new crypto investors start out.
But you have to ask yourself two simple questions. Ask yourself, “Is buying on Coinbase the best way to invest in these red hot currencies? Or is there a better way?” This is your dilemma at the moment. I’d like to help you answer these questions with a better alternative.
Before I share more details about my favorite method, known as a Bitcoin IRA, I’ll share other options too. This way you can make up your own mind in the end. But I have to say right now, if you care about long-term financial security in retirement you’ll heed my advice.
3 Alternative Ways to Invest Besides Coinbase That I Don’t Recommend
Although these alternatives exist, they aren’t the safest and most tax-effective ways to invest in digital currencies. So take time to read and learn about them. They may or may not be your cup of tea.
But one thing is for sure: these strategies leave you vulnerable to paying heavy taxes on your profits. And the more profit you make, the more you’ll owe the taxman. With my strategy, you get keep all of your profits. That’s the true beauty of a cryptocurrency IRA.
With that said, the alternatives to Coinbase are as follows:
- Bitcoin ETF – this news is hot off the presses on June 10, 2020. In Germany, their stock exchange was cleared to list the first “centrally cleared” Bitcoin ETF. So, if you want to buy Bitcoin stock, the floodgates are finally opening. Although the new security BitGo is only available in Germany, I bet the US and other markets will soon follow. With that said, the whipsaw movements of the stock market are often tough to stomach. You must have a strong constitution and market knowledge and expertise to profit from this type of investment. Are you an expert? If not, stay far away from this trade.
- BLOK – Amplify Transformational Data Sharing ETF – this is a Bitcoin play that trades on the New York Stock Exchange Arca. But you won’t invest directly in cryptocurrency when buying this ETF. This ETF focuses on investing in companies that develop new and advanced Blockchain technologies. It exposes you to the massive interest in Bitcoin and other forms of crypto. But you don’t actually receive any of the benefits that digital currencies provide. This is a tricky strategy that should remain in the hands of stock market experts. Avoid it unless you have a high tolerance for risk.
- Bitwise 10 Private Index Fund – while this investment is interesting, it also has a high barrier of entry. In order to invest in this index fund, you must have an initial investment of $25,000 or more. That’s not exactly small potatoes in my opinion. They’re asking you to take a leap of faith. You must put up a lot of money at the outset of your investment. The minimum requirement to open a Bitcoin IRA is only $5000. It’s also 80% less than the minimum to get into the Bitwise 10 Private Index Fund.
3 Alternative Cryptocurrency Exchanges to Coinbase
You’ve now learned about a few alternative investments with Bitcoin exposure. I’d like to also share a few alternative exchanges in case you’re determined to buy crypto the foolish way. The exchanges shared below all have great reputations for one reason of another. They include the following:
- Kraken – founded in 2011, this exchange officially began offering its services in Sept. 2013. Although based out of San Francisco, it’s available to people all over the world in places that include Europe, Japan, Canada, and the United States. Investors prefer Kraken because of its high liquidity, its credibility and high standards, and the ability to trade on the margin. They also like that they allow bank transfers, which is certainly convenient.
- Coinmama – this exchange is also popular on the international level because it operates in countries outside of the US. Coinbase used to focus strictly on US traders, but they’ve opened their virtual doors to 32 countries recently. This exchange is popular because it’s friendly to beginners and it offers a high spending limit. It also allows users to buy crypto with fiat money including the US dollar and other traditional currencies.
- LocalBitcoins – located in Helsinki, Finland, this exchange opened its virtual doors in 2012. It isn’t centralized and acts as a peer-to-peer Bitcoin exchange. It’s free to buy and sell Bitcoin on this exchange. They change a 1% fee if you choose to advertise. Other benefits include low fees, high liquidity, and excellent security.
Although these Coinbase alternatives are good at what they do, they aren’t the best way to buy crypto. I want you to crush it in retirement. I want you to finally experience the joys of living comfortably when you’re older. The only way to accomplish this is through tax free investment returns. That’s why a cryptocurrency IRA is critical to achieving your retirement dreams.
The Major Benefits of Opening a Cryptocurrency IRA
You already know how much I love investing in a Bitcoin IRA. Now I’d like to share the reasons why I think this investment is the right way to go. The biggest benefits of this investment strategy include:
- Diversifying your portfolio – as I write this, this Dow Jones Industrial Average in down more than 1500 points or close to 6%. The Dow hasn’t taken this big of a beating since April 2020. Unfortunately it’s only June 2020, so this massive drop isn’t too far from the Coronavirus crash. Is another crash happening as I type this? It seems like it. With a well-diversified portfolio you don’t have to worry as much. Sure, your stocks are going to take a big hit temporarily. But your alternative IRA investments including Bitcoin, Ethereum, and precious metals like gold and silver usually thrive in this environment. You get to sleep at night with diversification. You know that some of your investments are earning big bucks while other struggle.
- Avoid Short Term & Long Term Capital Gains Tax – Depending on your cryptocurrency IRA setup, you can avoid paying taxes. Some investments including mutual funds, bonds, and stocks are subject to long or short term capital gains. By holding your crypto in a tax-free or tax-deferred account, you have nothing to report to the IRS. Your investment gains are yours to keep. You can spend them however you want as soon as you reach 59 ½ and begin taking distributions. You can also avoid tracking cost basis, which is a nice added benefit. This eliminates the need to exercise meticulous accounting practices. The IRS can’t collect taxes on gains made in your Bitcoin IRA account. Take advantage of these rules. You’ll compound your account value by leaps and bounds when you make the most of these tax breaks.
- Eliminate Reliance on Untrustworthy Banking Cartels – Guess what? Banks have no control over cryptocurrency. They can’t suddenly lower interest rates and destroy the value of Bitcoin. Bitcoin and other cryptos aren’t affected by these rate changes at all. But the US dollar doesn’t stand a chance once the Fed gets going. Why continue being a slave to a flawed banking system? Spread your wings and recognize the value of cryptocurrency. Eliminate the banks from your life as much as you can and thrive in retirement.
How to Choose the Best Cryptocurrency IRA Company
Now that you’re convinced of the power of a Bitcoin IRA, you have to find the best company. Knowing what to look for in a solid company will help you make the best decision. To assist you, I’m going to share the most important traits I look for when choosing a new broker. They include:
- Great Reviews – some companies have terrible reviews because they deliver a poor user experience. Other companies have great reviews because they over-deliver value to their clients. Find a company like Regal Wallet with amazing reviews on all the major review websites including Trustlink, the BBB, and the BCA.
- Industry Accolades – well respected companies in the alternative investing industry are hard to find. There aren’t too many of them. We’ve discovered 3 that I think you should read about by visiting this page.
- Years of Experience – lastly, you should look for a company with years of experience. Although crypto hasn’t existed for too long, there are companies who’ve helped get customers set up with IRAs from the beginning.
Bottom Line
You can invest in cryptocurrency through Coinbase if you really want to. But is it the best way to protect your wealth? I personally believe in the value and compounding power of the Bitcoin IRA. It’s superior in so many ways like the ones I shared above.
Before you venture out into Internetland, take a moment to read my reviews of the top 3 cryptocurrency IRA companies. They’re the best and brightest in the industry. And out of the 3, one really stands out. They’re called Regal Wallet. If you’re willing to give them your email address, they’ll send you an informative crypto investing kit to thank you.
The layout is very clean, but also kind of simple. It makes you feel comfortable with the site because you don’t feel overwhelmed by information, but the presentation of the site I feel needs to be worked on a bit more.
There is no messing around here, just the information that they want to convey presented in the simplest way possible.
People with no technical back ground would definitely appreciate the simplicity and ease of navigation in this site.
It is extremely easy to navigate this site because all of the links are easy to access, which is excellent.
The color scheme is effective but should be used more around the site so you can show it off and also liven up the site.
The content flows well because everything is in the appropriate place and it is very easy to read- the less huge chunks of text, the better I feel.
The design is very consistent throughout.
Well done.
Hello Vasilios! Thank you for the feedback on my website! I will carefully consider all the advice you have given me. I’m glad you like the outlook of the website!
This was a very insightful post about investing in bitcoin. You showed that there are alternatives to Coinbase. I have been thinking about investing into the stock market and I found this to be helpful. You always must be careful when it comes to risky and unsafe ways of trading in the stock market. Keep up the good work!
Hello Ben! I would definitely recommend investing in Bitcoin and other cryptocurrencies than investing in the stock market with the current crisis and the devaluation of the dollar every day. Thank you for the feedback and the compliments, Ben!
Nice Ideas you have for coinbase alternative but for me I would still stick with my coinbase as it is not just the best but the most effective among all the other wallets around and with there site payment enablement it puts them on the tops chart as you could literally receive payment form good sold on your site direct to your coinbase wallet…for they are the best.
Hello Sophia! I see that you still prefer Coinbase, but I would strongly recommend a Bitcoin IRA as the best alternative because of the tax benefits you will receive that you will not be able to get through Coinbase. Thank you for the feedback, Sophia!
I have to be honest I have always thought this area was a bit of a scam and I know people who have said it is the best thing going only to find they have walked away from it a few months later. Is that a trend you notice? If that is the case it can be the barrier to confidence in this area especially if your knowledge is zero like me. So I live in the UK, have you ever thought about how it fits in this market? Do you think it will ever replace the traditional pension market where my portfolio is invested rightly or wrong. I guess all new investments started somewhere including stocks and shares which I get are also risky but makes up most of my pension portfolio probably. Despite all this you make it very clear which some people don’t and I think I understand it much better right now so thanks.
Hello Phil! Unfortunately, a cryptocurrency IRA is not available in the UK but you do have the options of investing in Bitcoin and other cryptocurrencies through Coinbase or its other alternatives that I’ve listed in the article. Thank you for sharing your experience with your investments and the feedback, Phil!
With the dollar constantly spiraling downwards, alternatives should be in place to secure your money. But most investments are a risk factor. Some investments have solid protections like direct investments such as physical gold, physical Silver, real estates, etc. Your reviews may be on good investment companies, but they are mostly based on digital sources, which can go up in smoke based on the economic status. I have to look more into the one that you claimed stands out. Maybe they are all not that bad.
Hello John! You have made a good point that with the dollar spiraling downwards, the best way to protect our investments is through non-correlated assets such as precious metals and land. Did you know that cryptocurrency is a non-correlated asset, too? It is not negatively affected by swings in the economy. I do recommend that you check out the companies in our reviews! Thank you for dropping by with the feedback!