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.
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.