Investing in cryptocurrency through an IRA is the same as purchasing cryptocurrencies directly through an account. There are a few key differences between buying cryptocurrency through an IRA and directly, though. A crypto IRA uses managed account providers instead of retail exchanges, which saves both time and transaction fees. Also, you don't need to know much about cryptocurrency trading to fund an IRA. Here are three ways to fund an IRA:
Bitcoin IRA
While you may be tempted to invest in Bitcoin for your IRA, it's important to understand the risks associated with cryptocurrencies. Bitcoin has fluctuated in price from $20,000 in December 2017 to $3,400 in December 2018, putting your retirement plan at risk. Moreover, while the price of Bitcoin continues to rise, you risk having to take payments during a decline in its value. The IRA investment comes with additional transaction fees and account custody, two expenses that will reduce your profits.
Cryptocurrency IRAs can be a lucrative option for investors. Unlike traditional IRAs, these investments offer a diversified portfolio of commodities and cryptocurrencies. Some crypto IRAs are even tied to physical commodities such as gold. If you're a New York resident looking for an excellent option, iTrust Capital IRA is the best place to start. The company claims to have more than 26,000 funded accounts, and their trading volume exceeds $2B every month.
BitIRA
If you have ever considered using a cryptocurrency-based IRA, you've probably heard of BitIRA. But what exactly is this innovative retirement investment option, and how do you go about establishing one? The BitIRA system combines cold storage, real-time trading, and investment management in one convenient package. It also helps its users manage their accounts, fund them, and contact staff for any questions. The company also prides itself on excellent customer service, and keeps paperwork to a minimum.
Founded in 2013, BitIRA has a stellar reputation for customer service. The company has received top ratings from the leading business and consumer protection bodies. They have partnered with two custodians and are regulated by FINRA and the SEC. Genesis also has dealing relationships in more than 50 countries. Despite the company's high customer satisfaction ratings, many investors are unsure of how trustworthy BitIRA really is. To avoid potential scams, look for companies that have excellent customer service and a great reputation for transparency.
Broad Financial
Broad Financial is a self directed IRA account provider that offers a wide variety of alternative assets, including Bitcoin. They can also administer a variety of other types of IRA accounts, including tax liens, gold, real estate, and private businesses. The company is run by three principal owners, all of whom have worked in the financial services industry. In fact, they are credited as innovators on their website. For example, CEO Brian Finkelstein previously worked at UBS, Kidder Peabody, and Kantor Fitzgerald, but Broad Financial is the only one that offers a Bitcoin IRA.
One of the biggest advantages of Crypto IRAs is the privacy they offer. While the company does not charge transaction fees, there is a $95 maintenance fee and a $1,295 account setup fee. This is a far cry from the hefty fees and transaction fees associated with traditional IRAs. However, Broad Financial does offer lifetime customer support. Its IRAs are available in both traditional and Roth versions.
iTrustCapital
If you're interested in diversifying your retirement savings, you may want to consider a crypto IRA. By choosing iTrustCapital, you can buy and sell crypto while using your existing IRA tax benefits. In addition, you can choose a traditional, Roth, or SEP IRA. You'll also be able to invest in precious metals.
This New York-based crypto IRA offers a simple and straightforward platform with no monthly fees. Its service is available round the clock, including holidays. Its low minimum investment amount of $2,500 is great for those who want to diversify their retirement portfolio. iTrustCapital also offers great transparency with regard to its pricing, including no broker fees, no monthly fees, and only one percent of each transaction. Customer reviews on Trustpilot praise the platform's customer service and ease of use.
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