What You Need to Know Before Investing in a Cryptocurrency IRA
The financial world is in complete chaos right now. In particular, the US is in serious trouble. We desperately need financial stimulus to prop up the failing US economy.
But the talking heads in Washington can’t seem to get on the same page. This has been going on for months and the overall economy is suffering because of it.
Guess what? The value of the US dollar is also suffering. Further stimulus will cause the Federal Reserve to print about 2 trillion more dollars. This will dilute the value of the US dollar even further. Before long, a gallon of milk may cost as much as $10. Hopefully, this never happens but it’s a real possibility.
Cryptocurrency isn’t affected by the Federal Reserve, economic stimulus, or a failing world economy. It’s completely autonomous and it acts on its own. Another thing about cryptocurrency is it’s incredibly valuable. In the past two years or so, the value of Bitcoin has risen by more than $11000, according to Coin Companion.
Are you willing to continue losing your wealth to a falling US dollar? Or are you ready to prop up your own personal economy by investing in a cryptocurrency IRA? The choice is yours. We’ll share some benefits of a cryptocurrency IRA and a few other things you need to know before investing.
Capture Phenomenal Tax Advantages with a Cryptocurrency IRA
The great thing about opening a cryptocurrency IRA is you’re technically opening a self-directed IRA. And self-directed IRA accounts provide account holders with unique financial tax advantages that other investments fail to capture.
By investing in cryptocurrencies like Bitcoin or Ethereum in a self-directed IRA, you’ll become eligible to receive the following tax benefits:
- Expand your wealth through tax-deferred investing. You’ll have access to wealth accumulation advantages depending on how you set up your account. If you set up a tax-deferred account, you’ll deposit pretax dollars into your cryptocurrency IRA. You’ll accumulate wealth by investing in Bitcoin and other cryptocurrencies. When the time comes to take distributions in retirement, you’ll then pay taxes on the proceeds.
- Grow your retirement account through tax-free investing. Another option is to fund your self-directed IRA account with money that was already taxed. Some investors love this advantage because all of the wealth they accumulate in this account is generated tax-free. You aren’t required to pay capital gains tax once you begin taking distributions after you reach the distribution age.
- Investing in a self-directed cryptocurrency IRA makes it possible to lower your adjusted gross income each year. If you deposited the maximum allotted $6000 for the tax year 2020, you’ll lower your taxable income by the same amount. So, if you make $50,000 in income in 2020, you’ll lower your taxable income to $44,000 that year. This is just another great benefit of opening a cryptocurrency IRA.
- Retirement isn’t automatically thrust upon you at age 65. In fact, another added benefit of a cryptocurrency IRA is accumulating your investments until you reach 70 ½. At 70 ½, you are finally required to begin taking regular distributions. But you can keep funding your account and buying cryptocurrencies up until this point.
Clearly, there are many amazing tax advantages of investing in a cryptocurrency IRA. Learn about the top cryptocurrency brokers online. And remember to choose a reputable broker to do business with.
Short-Term Cryptocurrency Investing Is Risky Business
Some people are under the impression that cryptocurrency investing is incredibly speculative. This may have been true in the past but it’s not such a scary investment at this point in time. As a matter of fact, many investors became Bitcoin millionaires because this highly sought-after digital currency is so valuable.
But like any other investment, cryptocurrencies are going to go up and down in value. But the risk isn’t any greater than the risk you’d have investing in the stock market. At some points, your cryptocurrencies aren’t going to be worth as much as they once were.
This is par for the course with any investment. And it’s something you’ll have to get used to if you plan to accumulate tremendous wealth for retirement.
That’s why short-term investing is a risky business in our opinion. It’s so much better to hold for the long term. Why? The value of cryptocurrencies, stocks, bonds, real estate, and other investments tend to grow over time.
But you have to give your investments enough time to accumulate the wealth that you deserve. Short-term trading is a recipe for financial disaster. So, hold your cryptocurrencies for the long-term and accumulate wealth as the years become kind to you and your investments.
Spend time researching the top cryptocurrency IRA companies as soon as possible. The sooner you find a reputable broker, the faster you can begin preserving and protecting your financial future in retirement.
Stick to Investing in Well-Known Cryptocurrencies to Accumulate Wealth
Did you know that there are more than 4900 cryptocurrencies currently available today? That’s a lot of digital currencies to choose from. And to be honest with you, most of these cryptocurrencies will eventually fail.
Only a select few will withstand the test of time and accumulate the type of value and wealth that you deserve.
How do you know which cryptocurrencies are the best to invest in? Well, the most reputable cryptocurrency IRA companies only recommend the top cryptos to invest in. But to help you know what to look for before you begin, please only consider investing in the following cryptocurrencies:
- Bitcoin Cash
- Ethereum Classic
The list of cryptocurrencies mentioned above is trustworthy, incredibly valuable, and ready to withstand the test of time. When you buy cryptos, remember to stick to the choices on this list for your best chance at investing success.
At this stage of the game, we hope you see the value of cryptocurrency IRA investing. It’s worth it to invest in Bitcoin and other cryptocurrencies over the long term. And it’s in your best interest to choose a reputable cryptocurrency IRA company to do business with.
Otherwise, you could end up paying high fees and other hidden surprises to a rip off artist. We obviously would not want to see that happen to you so do your due diligence first.