A Bitcoin IRA custodian is something that many investors are looking to as they seek to capitalize on the huge increase in value of cryptocurrencies such as Bitcoin and Ripple. The key to their role is that they can help investors to unlock the potential which they have sitting in their retirement funds and use it to try and make profit through the investment of Bitcoin and other attractive cryptocurrencies.
Bitcoin had a meteoric rise in 2017, topping out at just under $20,000 in mid-August, the price may have fallen now, but many investors are greatly confident that the digital currency will not only bounce back, but could even reach beyond last year’s dizzying heights. If you aren’t sure whether you should utilize your IRA to invest in Bitcoin, here are some reasons why you most definitely should.
Regardless of what it is that you normally invest in, the idea of diversifying your portfolio is always a good one. The reason behind this is simple, if you have all of your eggs in one basket and things go wrong, you could be losing a great amount of capital. If, however you diversify your portfolio, you can greatly cut down your chance of losses, whilst simultaneously increasing your chances of gains. Adding cryptocurrency to your already blossoming portfolio can help greatly with the overall investment picture.
Because of the way in which IRA custodians operate, you can be sure that your cryptocurrency is safe and secure. thanks to the multiple layers of security your coins will be safe from hackers, and it will also be safely managed should you pass away, with the money being passed on to your selected heir. Many people say that the world of cryptocurrency is insecure in its very nature, and whilst this is not the case, even if it were, you can count on maximum security when you use a custodian, security which cannot be attributed to all forms of investment.
There are no additional tax penalties when you manage a Bitcoin IRA through a self-directed account, which is yet another reason why this aspect of investment is worth doing. If you take on a Roth IRA, an IRA which is funded using post-tax dollars rather than the pre-tax funding which you can expect with a traditional IRA, you can greatly increase the profitability of your investments, whilst minimizing the tax liability which you will need to pay.
CEO of CoinIRA Trevor Gerszt explains:
Cryptocurrency IRAs can be funded with pre-tax dollars or existing retirement assets… that makes them a very popular option for investors looking to take advantage of the asset appreciation of cryptocurrencies while still benefiting from the advantages of traditional retirement accounts.
Bitcoin IRAs are a great idea for your investments and even if you only invest a small amount, you could see some huge gains or your investment.