Opening a cryptocurrency IRA (Bitcoin, Ethereum, Litecoin, Ripple, etc.) or 401k might be a great investment. Also bear in mind that you can rollover your existing IRA, Roth IRA, 403b or 401k into a cryptocurrency IRA, which might also prove advantageous.
In either of these scenarios, the most important thing to consider is that since cryptocurrency is a relative newcomer to the investment scene, you must always ensure that your cryptocurrency IRA company is trustworthy and that that trust is backed up by positive reviews and testimonials. In this novel field, there still are limited numbers of retirement operators, so take special care to ensure they can answer your questions and provide you with the best investment options available to you.
Remember, if you don’t ensure that your investment management company is as reliable as possible, you run the risk of jeopardizing your investments, underfunding your retirement and even being penalized by the authorities for irregularities in your investment process. Choose wisely, and take a look at the chart below for some ideas about what you should be looking out for.
Top Reasons To Open A Crypto IRA
- Cryptocurrency has a lot of room for growth
- At less than 10 years old, crypto has a lot of room to grow and, as we all know, investments prove their worth over time – and lots of it! Starting now means your crypto investment has lots of space to expand
- Crypto allows you to protect your privacy
- As a completely anonymous way to move and invest money, cryptocurrency allows you to maintain your personal and financial privacy, something very important in a world where personal anonymity is harder and harder to achieve
- No governmental interference
- Bitcoin, Ethereum, Litecoin, Ripple and other cryptocurrencies are not issued by any central bank or organization, meaning they are not subject to any arbitrary regulating or auditing
- Easy diversification for your pension
- Anyone with an interest in investment knows that diversification is the way to protect your investment from an unknowable future. Bitcoin provides a good alternative to stocks, bonds, and gold
- Freedom from random banking fees
- Given the structure of cryptocurrencies, you do not have to pay or account for transaction or holding fees, as you would with a traditional bank
If you’ve been convinced that investing your Bitcoin in a cryptocurrency IRA or other pension product is a great idea for your situation and goals, we offer a few tips about how to choose the perfect investment manager for your financial move.
Factors To Consider Before Investing
Like with any other investment, it makes sense to make sure that the company you choose to manage your crypto IRA is as qualified as possible. Read reviews and testimonials to ensure that past and present clients are happy with the service and results they get. Look to both official financial review sites as well as customer review portals like Google and Yelp.
Crypto moves fast, so it’s important your would-be company can get you processed and set-up quickly before the world of cryptocurrency has changed and left your investment in a completely different situation.
Secure internal processes
The greatest point of possible weakness in the cryptocurrency industry is in the technical processes that underlie operations. Make sure your management agency has the entire process detailed and locked down so the risk of a security breach is as low as possible.
Armed with this information, you’re ready to find a management company and using your cryptocurrency profits to finance a blissful retirement. As with any other investment, you should bear in mind that there are associated risks that you should take steps to mitigate. Do your due diligence and enjoy your crypto fruits for many, many years to come.