Are you concerned about the well-being of your retirement portfolio? Many Americans fear that the next stock market bubble is about to burst. They worry that the money they recovered from the crash in March 2020 and the subsequent profits will all disappear.
Do you feel the same way? It’s okay if you’re afraid because history tells us that volatile markets eventually come crashing down.
What you really need to consider is, “Am I prepared for the eventual fallout?”
Right now, you need to contemplate ways to further diversify your portfolio. You need to ponder selling some of your stocks – or a large portion of them – to invest in other places.
Consider investing in areas like:
- real estate
- bonds
- precious metals
- virtual real estate (blogs, YouTube channels, etc.)
- cryptocurrencies
Today, we’re going to focus by looking at why cryptocurrency investing is essential to a diversified portfolio. You may not know it right now, but I’m about to share important information with you today. This info will not only prevent you from suffering major losses, but it will help you weather tough times ahead.
Does this seem appealing to you? Keep reading to discover these important truths.
Institutional Cryptocurrency Investing Is at an All-Time High
Major investors and financial institutions far and wide are beginning to invest in Bitcoin. This trend is carrying over to all major cryptocurrencies. This includes Litecoin, Ethereum, Bitcoin Cash, Ethereum Classic, Ripple, and Monero to name a few of the most popular options.
And the best part? It isn’t slowing down anytime soon.
Tech investing maven Cathie Wood, founder of ARK Invest, considers Bitcoin a new asset class. She even believes that it should eventually replace bonds, because that’s how powerful she believes this investment opportunity can be.
In fact, she said that if the biggest companies replaced 10% of their cash with Bitcoin, it would reach $250,000! How amazing is that? That’s 5 times higher than the current value.
But Cathie Wood is only one investing giant of many that have jumped on the Bitcoin bandwagon as of late. Other major players include:
- Tesla – $1.5 billion of Bitcoin purchases
- MicroStrategy – over $1 billion in Bitcoin purchases
- PayPal – bought 70% of newly minted crypto in November 2020
- Square – converted 5% of total cash to Bitcoin
- Other notable Bitcoin owners include Bulgaria, the FBI, the Winkle Voss twins, Gavin Andreasen, Charlie Schrem, Tony Gallippi, and other major celebrities.
As an investor, it’s wise to purchase Bitcoin and other cryptocurrencies through a cryptocurrency IRA. Learn about the top 3 cryptocurrency IRA companies by reading my complete and detailed review.
Famous People Are Investing in Bitcoin and Other Cryptocurrencies
Institutions are one thing and they’re a big reason why the price of Bitcoin and other cryptocurrencies keeps rising. But celebrities offer their own special interests and insight into this style of investing that make it even more popular.
The great thing is that celebrities see the value in owning digital currencies. And they even realize that opening a cryptocurrency IRA is a smart move.
Why are they so enamored with this investment? They love it because it represents freedom. They love it because it isn’t backed by any financial institutions or governments. And they love it because it doesn’t suffer from inflation, supply and demand issues, or anything else like that.
Famous People Investing in Cryptocurrencies
So, which brave celebrities have taken the cryptocurrency plunge? The most famous of them all include:
- Gwyneth Paltrow
- Paris Hilton
- Mike Tyson
- Snoop Dogg
- Bill Gates
- Ashton Kutcher
- Jamie Foxx
- Roseanne Barr
- Lily Allen
- Drew Carey
- Melanie Brown (Mel B from the Spice Girls)
- Floyd Mayweather Jr.
- Richard Branson
- Luis Suarez
- Donald Glover
- Joe Rogan
- and the list goes on and on
Why is this important to you, as an investor? It’s important because the people on this list are trendsetters. Average people tend to copy them and follow in their footsteps. This means more people are interested in cryptocurrencies because of them. And it means more people are investing in these currencies, driving up the price, and making them more valuable.
Do you recognize how critical this can be to your success? Celebrities investing in Bitcoin and other cryptocurrencies is possibly the best things that could ever have happened to this investment.
Don’t buy cryptocurrency and let it sit there collecting digital dust. Buy it through a cryptocurrency IRA instead. Learn about the top 3 cryptocurrency investing companies by reading my detailed review.
Cryptocurrency IRA Tax Benefits Are Truly Amazing
Have you ever wished that you could find an IRS tax loophole that saves you money? Most people hope and dream for this opportunity but fail to realize that one is already available to them. The loophole I’m talking about is the one available to cryptocurrency IRA holders.
What does it entail?
Technically, this tax break is made available through two different methods. The one available to you depends on the way you’ve set up your IRA account for cryptocurrency investing.
When you own a cryptocurrency IRA, you can make the most of tax-free investing or tax-deferred investing. This is 100% true and it’s the reason why many people feel that the rich continue to get richer.
The major benefits for each tax break include:
- Tax-deferred investing – if you invest in a tax-deferred account, the first big benefit is paying less taxes each year on your overall income. By depositing up to $6000 per year, you can avoid paying $6000 on yearly income taxes. These taxes are deferred until you start taking distributions in your cryptocurrency IRA account. Distributions can begin as early as 59 ½ years old. Or as late as 70 ½ years old.
- Tax-free investing – investing in a tax-free account certainly has one incredible benefit. You’ll deposit money into this account that was already taxed. But any and all gains made within a tax-free account are yours to keep. The IRS will never try to force you to pay taxes on this money based on the way this account is set up. Like I mentioned above, distribution start at 59 ½ years old. But if you feel like waiting, you can wait until you’re 70 ½ years old before you begin taking mandatory distributions.
To get started opening a cryptocurrency IRA, please read about the top 3 companies doing business in this space. You’ll need to work with a reputable broker to get started and I’ve reviewed the best in the business.
Cryptocurrency Investing Is a Huge Trend That Isn’t Slowing Anytime Soon
Did you know that the best way to become a successful investor is to follow the trends? The biggest trends from an investor’s standpoint include electric vehicles like Tesla and Nio, vaccine stocks including Moderna, and cryptocurrencies.
Getting involved in the other investments are easy. Just open a brokerage account with E*TRADE or TD Ameritrade and begin buying shares at your leisure.
Opening a cryptocurrency IRA is a little more complicated. But it’s worth it because this investment is going to pay big dividends in the near future.
Have you been paying attention to what’s been happening with cryptocurrencies over the past year?
To quickly recap, when the economy shut down because of the coronavirus, the Bitcoin price dropped as low as $3900. Since then, over the past year, the price of Bitcoin has reached nearly $58,000, before settling around the $50,000 mark.
Without sharing every single detail, just know that Bitcoin grew more than10 times, which is truly incredible. But other cryptocurrencies like Litecoin, Ethereum, Ripple, and more have grown three times, four times, five times, and more.
What does this mean for investors? If anything, 2020 proved to be the year of cryptocurrencies. So many big corporations, financial institutions, and major funds are investing in these currencies.
As an investor looking to diversify their portfolio, this is an amazing opportunity. This presents a way to add serious diversity while jumping on the back of a major trend. This means you get to have your cake and eat it too and make plenty of money in the process!
Cryptocurrencies Have Built-In Supply Limitations
Most cryptocurrencies have built-in supply limitations. This may seem counterproductive, but it’s actually a major advantage if you think about it.
Because of the supply limitations, you know that millions more Bitcoins, etc. won’t suddenly be created to dilute share value. This means you will never suffer from major price decreases due to increased supply.
The cryptocurrencies with known limited supplies include:
- Bitcoin – 21 million
- Bitcoin Cash – 21 million
- Zcash – 21 million
- Litecoin – 84 million
- BitShares – 100 million
- Ripple – 100 billion
- Tron – 100 billion
This might not seem like a big deal but it actually plays a huge role in stabilizing the investment. No one is ever going to step in and dilute the supply or devalue it, which is amazing.
Bottom Line
You can see that adding cryptocurrency investing to your portfolio is a great way to further diversify your bottom line. And that’s the ultimate goal. Continuing to pump your money in the stock market and bond market is a recipe for eventual failure. At some point, the bubble will burst and your investments will lose big bucks.
Always invest in cryptocurrencies through a cryptocurrency IRA. The best way to get started is to deal with a top-notch cryptocurrency broker. I’ve reviewed the 3 best in the industry, which you can read about by clicking here.
