This post will be for you who want to know more about Bitcoin IRAs. What is a Bitcoin IRA? How does it work and what should you think about when it comes to the subject? Who is this kind of investment really for? And is it really possible to see 10x gains (and more) in only 1 short year? Is it time to act now or should you wait?
These are some of the topics we touch in today’s article. So hang tight this one will be interesting for you, especially if you are interested in Bitcoin (and/or other cryptos) investing from your retirement account!
Before we go on with the article it is important to mention that you should NOT invest more than you can afford to lose into cryptos or ANY other investment. Stick to that rule of thumb and you will be fine. Another thing, we are a professional and independent website that aims to provide you with valuable info about cryptocurrency and the investing parts of it. Our content does not constitute financial advice. We do encourage you to talk to your financial advisor before making any decision on investing. To be able to meet the running cost of this website, we do receive compensation from ads and banners you might see on this website. We also receive compensation from external companies for sending leads their way.
What is a Bitcoin IRA – Explanation
So, what is a Bitcoin IRA? Well, the answer is pretty simple and not complicated at all as it might sound. A Bitcoin IRA is just like any other IRA. What does IRA mean then? The word IRA stands for Individual Retirement Account.
What is an IRA then? It is a saving account where the money you put inside and the returns you get is not taxable until you retire. That is also 2 of the big reasons why it is used by people (worldwide) and why many investors today choose to rollover into an IRA instead of a 401k or other retirement investing forms.
The 3 forms of IRAs
There are 3 different forms of IRAs to choose from,
- Traditional IRAs (TIRA)
- Roth IRAs (RIRA)
- Self-Directed IRAs (SDIRA)
If you want to invest in a Bitcoin IRA you want to choose the last option of the 3 above options, a Self-Directed IRA (SDIRA). That one allows you to invest in both traditional but also non-traditional assets, such as cryptocurrency for example.
How does it work?
Bitcoin IRAs works no different than other IRAs. The process is exactly the same, and you would fill out the same forms as you would on any other investment.
For you to be able bitcoins and/or other cryptos in your retirement portfolio you need to have an employer-sponsored 401k or (more recommended) a self-directed IRA. By the way, that is also the case when it comes to gold and/or other precious metals.
As the owner of the plan (a SDIRA), you are able to pick Bitcoin and/or other cryptos without losing the tax deferral for your retirement account.
Is a Bitcoin IRA only for “younger” investors?
Absolutely NOT, it is an opportunity for “smart investors”.
This, as I would like to call it, once in a lifetime investment opportunity of Bitcoin and other cryptos are for absolutely every “smart investor” out there, that can both see, and understand, what times we are now living in right now… This is the Dot.com boom 2.0, or should we say 10.0 or maybe 100.0?
Think the later one represents the massive opportunity here best of my silly metaphors.
If you are on this site and reading this you are a smart person, you (most likely) understand that Bitcoin (and also other cryptos) are here to stay, they ain´t going nowhere. Each and every day more and more companies accept it as a payment form.
eBay started to accept it some weeks ago, and that only, really says a lot. Do you think Amazon, the biggest online retailer (by far) will stand aside with their hands in their pockets while one of its biggest competitors (eBay) allows people to purchase with Bitcoins?
Both you and me now the answer to that…
What do you think will happen to the price of Bitcoin when Amazon officially announce that they will start accepting it also?
Think we both understand the logical answer to that also… Boom!
Ask Bill Gates, John McAfee, Eric Schmidt, etc, etc… They are ALL convinced that Bitcoin will change the world completely and that we are only in the first stage of how high the price of it can really go.
There is no way to stop the crypto establishment, no matter what you feel or think about it… So if you haven´t already started to take “investment precautions” you might want to rethink your “values”.
It is absolutely not too late for you to be able to gain massively on this boom but you might want to consider acting in a near future… When the masses will be in on this it might be too late…
10x gains in only one year – Is it possible?
Yes, it absolutely is possible, and much more. Last year (2017) alone Bitcoin increased in value with 1,300% (!). Other altcoins made much bigger gains. Keep in mind that Bitcoins are of limited supply, there can never be more than 21 million units… Both you and I know that limited supply will always mean a higher demand… And that means increased value… Always… Period.
However, nobody can predict the future and see with 100% certainty what will happen. Cryptos (just like any other investment) can go both up and down in price, so please use your head when investing and not your ego… or testosterone…
Pro investors advise you to put no more than 5-10% of your total retirement portfolio into Bitcoin and other cryptos. So you might want to stick to that recommendation.
What you want to avoid!
Bitcoin was created for people to gain more anonymity and to be able to avoid unnecessary bureaucracy for example. Am sure you would prefer to avoid bureaucracy as much as you possibly can also, right?
To get a better understanding of how to invest in Bitcoin from your retirement account I would highly recommend you to read this short article to gain a better understanding of what direction to go and what direction to run away from.
Do you remember when the internet came up as something new and unknown (at least for the masses)? What is your first memory? Netscape? Maybe Windows 94?
The thing is, it took years for me (and maybe you) and the most others to really understand that it was not a thing that was going to pass and go away.
Early investors (smart investors) made an absolute fortune by investing in companies like Microsoft and Google for example, with early I mean the ones who got in on it before the masses woke up and understood what it was all about.
You need to understand that the masses STILL are not into cryptos, neither do they understand it… Not yet.
However, they won´t stay unaware for much longer… It might be a question of months, or maybe a couple of years… However, it can go fast, especially when (not if) companies like Amazon, for example, start to accept it as a form of payment…
When the masses wake up and smell the coffee, it will be too late… at least for the major gains…
You are a smart person, so am sure you want to act as fast as you can (without acting stupid though). Click the link below to get a better understanding of what to avoid and instead how to do it in a smarter way.
Hope you found this article helpful and now you should have a better understanding of what a Bitcoin IRA is and if it is something for you or not. If you have made such a transfer yourself please share your experience in the comment section below as it can help others. Also, if you got any questions about all this I will be more than happy to answer them below!
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To your crypto success!
Founder of: King Cryptos