Are you thinking about investing in Bitcoin? Many people are finally starting to realize the value of this exciting digital currency. They see how useful it is to make purchases online. And they recognize many of the other conveniences that Bitcoin and other types of cryptocurrency provide.
The question you need to ask yourself is, “How should I buy Bitcoin?” You’ll have a few different options at your disposal and your choices are growing every day. In fact, this morning PayPal announced that they’ll offer Bitcoin and other cryptocurrencies through their platform. Square already offers it to its customers over the last few years. And even stockbroker accounts like Robinhood and Webull have made Bitcoin investing available to their customers.
So, it all comes down to the reason why you want to buy Bitcoin. Are you looking at it as an investment? Or are you purchasing Bitcoin for day-to-day use or short-term potential gains?
I’d like to focus this article on investing in Bitcoin for the long-term in a cryptocurrency IRA. In my humble opinion, this is the best way to buy Bitcoin out of every option. It’s the smart way to invest because it gives you access to tax advantages and other long-term benefits. The other buying options mentioned above can’t provide the big benefits that I’m about to share with you below.
If you’re really serious about investing in Bitcoin for the long-term, I highly recommend opening a cryptocurrency IRA. Learn more about the top Bitcoin brokers while reading my review of the best crypto IRA companies by clicking here.
A Quick List of the Major Benefits of Opening a Bitcoin IRA
I’ll share more details about these benefits below, but please realize that the major advantages of this investment vehicle include:
- Cryptocurrency is autonomous from the stock market and other investments. It doesn’t necessarily follow the crowd.
- The supply chain for Bitcoin and other cryptocurrencies is limited to a specific amount.
- Bitcoin and other cryptocurrencies are decentralized. They aren’t controlled by entities that might manipulate them in their favor.
- Cryptocurrency investing provides total control over your portfolio. Buying Bitcoin as a long-term investment requires opening a self-directed IRA.
- The tax advantages of a Bitcoin IRA are truly amazing. This is a potentially life-changing way to maximize your profits for retirement.
As I said, I will go into each one of these benefits in greater detail. This will really help hammer home why this investment is so tremendous. Or if you’re ready to get started, please read my review of the top cryptocurrency IRA companies in business today.
Cryptocurrency Investments Do Not Necessarily Follow the Crowd
This first point is incredibly important because of all of the economic turmoil taking place in the world today. The coronavirus has created mass havoc across the globe. In the United States, it’s cost over 50 million people their jobs and the recovery’s happening much slower than predicted.
Have you been negatively affected by the imposed economic downturn? Or could you potentially suffer if things don’t turn around fast? The first thing that suffered is the value of the US dollar. If you haven’t noticed, prices at the grocery store, restaurants, and other places are much higher these days. Do you know why?
Simply put, the US is forced to provide economic stimulus to keep the economy going. Because it has no choice but to continue printing money, the value of the US dollar doesn’t go as far.
On the other hand, cryptocurrency values have skyrocketed since the economic downturn reared its ugly head. In fact, just a year ago Bitcoin was only worth about $7000 per Bitcoin. Today it’s much closer to $13,000 and rising, which is more than an 85% gain!
Bitcoin and Other Cryptocurrencies Have a Limited Supply
Do you understand how supply and demand works? When supplies are abundant, the cost of said product goes down because a lot of people are competing to sell the same thing. When supplies are limited, the value of said supplies rises. It’s much harder to get your hands on the supplies so they become more valuable and expensive.
Guess what the supply limitations on Bitcoin creates? It creates an incredibly valuable digital currency. Why? There are only so many Bitcoins to go around. And once they’re all mined, there will never be any others created again.
The total on Bitcoin mining is 21 million coins. We haven’t quite reached this level yet but we are slowly but surely approaching it.
The limited supply of Bitcoin means that the more people that become interested in it, the more valuable it becomes. Since celebrities, actual countries, banks, and other major organizations recognize the value, Bitcoin and other cryptocurrencies will continue to grow.
Clearly, capping the supply and keeping it limited will make Bitcoin and other digital currencies much more valuable. This is the kind of investment you want to get into sooner or later because of its massive growth potential.
Cryptocurrencies like Bitcoin Are Decentralized
Investing in a Bitcoin IRA is even smarter because these currencies are decentralized. They do not fall under the purview of any major bank, government, or the Federal Reserve. They are fully autonomous and they function on the blockchain which isn’t regulated by anyone. It’s monitored by the people who’ve created the blockchain but there aren’t any regulations whatsoever.
What does this mean for you as an investor? It means that you don’t have to worry about a Central Bank or world government stepping in and taking over. Because they only look out for themselves and do not care about the little guy. They could end up ruining the party if they had this kind of access. But that is never going to happen because of the way that Bitcoin and other digital currencies were designed.
So, you don’t have to worry about the Federal Reserve or the European Central Bank controlling Bitcoin one day. The creator was smart enough to know that this could potentially happen. So, he or she took steps to prevent this unwanted outcome from ever happening.
Did you see that I said he or she? We actually don’t know who created Bitcoin to this day. It’s a mystery that may never get solved.
Cryptocurrency IRA Investing Gives You Complete Control over Your Investments
Unfortunately, some people are very afraid to take control of their investments. They worry that they don’t possess enough knowledge or understanding of the markets to make these decisions on their own. While this may be true to a degree, it still doesn’t excuse you from controlling your own investments anyway.
Guess what? Your 401(k) account manager doesn’t care if you make money or not. They invest in the safest investments that will provide the smallest returns to justify their existence. And they will charge an arm and a leg for their services. Aren’t you tired of paying these people a small fortune to make you hardly any money?
A self-directed IRA puts you in complete control of your investment account. You make all the decisions about what you should invest in at this level. You can buy Bitcoin, Ethereum, real estate, gold and other precious metals, or whatever you want in this account. You’re in charge and you’ll quickly learn it’s one of the best decisions you’ve ever made.
The benefits of controlling your investments include:
- Choosing your own investments. You can invest in products or companies that you believe in. Not companies that some account manager thinks are a good idea.
- You no longer have to worry about being taken advantage of by professional money managers. As I mentioned already, they really do not care if you succeed or fail. They get paid either way.
- You may not believe this, but you can actually outperform the professionals. Again, they only try to make the bare minimum to justify their existence. You can do much better investing on your own in a cryptocurrency IRA.
Click here to read my review of the top Bitcoin IRA brokers in business today.
Bitcoin IRA Tax Advantages Are Tremendous
You can set up your cryptocurrency IRA account two different ways. You can either set up a:
- Tax-deferred account
- Tax-free account
In a tax-deferred account, you deposit income that you haven’t paid the taxes on directly into your IRA account. You use this money to grow your wealth through Bitcoin investments. You only have to pay the taxes once you start taking distributions anywhere from 59 ½ years old to 70 ½ years old.
In a tax-free account, you deposit money that was already taxed. So, anything that you earn with pretax dollars is yours to keep. You do not have to pay taxes on the account growth because the taxes were paid prior to making a deposit.
Either way, the tax advantages are so powerful. You’ll grow your wealth by leaps and bounds in this account.
Taking the Next Step
Do you now know why you should buy Bitcoin in a cryptocurrency IRA? I truly hope you see the massive growth potential in this investment. If you do, I’d like to invite you to read my review of the top three companies in this space. They are the best of breed in this industry and I implore you to choose any of these options. Click here to learn more about my favorite Bitcoin IRA recommendations today.