Are you thinking about investing in cryptocurrencies, but you aren’t certain of the best way to get started? For some people, they are overwhelmed by the amount of crypto investing options. Others aren’t sure if it’s the best investment to meet their long-term needs.
Personally, I always recommend investing in a cryptocurrency IRA. It’s the smartest way to take advantage of this long-term opportunity. And IRA investing definitely has its advantages when compared to typical cryptocurrency investments.
Today, I’d like to share four reasons why opening a cryptocurrency IRA is the best investing strategy. Take a moment to look over my reasons to see if they meld with your long-term plans.
Reason #1: Tax Breaks
Have you ever wanted to grow your net worth without paying taxes? Opening a cryptocurrency IRA provides this unique opportunity.
It’s very rare for the IRS to make tax loopholes available to average working-class citizens. But in this case, opening a traditional or Roth cryptocurrency IRA makes tax free investing more than possible.
As an example, let’s say you bought and sold crypto on a regular exchange for a profit. The proceeds of this investment are subject to capital gains taxes.
At the beginning of the next year, during tax season, you’d be responsible to pay taxes on your capital gains. And if you’ve been paying attention, President Biden intends to raise capital gains taxes to nearly 44%.
There’s a much better way to grow your net worth.
If you invest in a traditional cryptocurrency IRA, you will not pay taxes on your investment until you begin taking distributions at 59 ½ years old or older. Or if you prefer, you can open a Roth crypto IRA. And everything earned in this account is tax-free because it’s funded with post tax dollars.
Isn’t this opportunity amazing? So many people miss the boat on these exciting tax breaks. It’s like receiving free money from the IRS. And investors are really crushing it with high profile cryptocurrency returns at the same time.
Reason #2: Add Further Diversity to Your Investment Portfolio
Novice and experienced investors understand the value of portfolio diversification. It’s never wise to keep all of your eggs in one basket. If all of your investments are of a similar nature, they will all lose value when the market finally crashes.
As an example, let’s take a look at stock market investments. The reason experts recommend investing in different sectors is because sectors tend to succeed and fail at the same rate. In 2008, as the stock market was crashing, the energy sector took off like a rocket. Oil, coal, and natural gas stocks made tremendous percentage gains in the first half of 2008.
Then on July 2, 2008, CNBC released their weekly gasoline usage report. Since gas prices were astronomically high at that time, many people stopped traveling by car unless absolutely necessary.
The energy sector took a huge nose dive for many months. And investors gave back all of their profits and then some.
Why limit yourself to investing in stocks for your retirement portfolio? Add incredibly lucrative cryptocurrencies to the mix. Not only will you experience better diversification, but you’ll also add an investment with serious growth potential to the mix.
Reason #3: Cryptocurrencies Have Massive Growth Potential
Yes, investing in cryptocurrencies puts you in the heart of a volatile market. But it’s important to realize that the market is so volatile because it has so much enormous interest.
Short-term investors have the potential to lose their shirts when investing in cryptocurrencies. Because Bitcoin and other options can fly high one week, only to crash and burn the next week.
There’s an easy way to combat losing money due to the ups and downs of the cryptocurrency market. You can hold on to your investments for the long-term. This puts an end to panicking because these investments are so volatile.
Guess what else? The growth potential for cryptocurrencies is amazing. We’ve seen their potential more than once over the last decade. In fact, at one point in early 2020 Bitcoin was only worth around $5000. Today, it’s worth around $46,000, which is a massive percentage increase to say the least.
Are you ready to capitalize on this mammoth investment with huge growth potential? Do yourself a favor and open a cryptocurrency IRA as fast as humanly possible to get started.
Reason #4: Manage Your Cryptocurrency Investments Easier
Some people have a difficult time buying and selling cryptocurrencies via a crypto exchange. And they also find it difficult to properly manage and secure their Bitcoin wallet.
Do you typically struggle with new technology? Are you afraid to begin buying Bitcoin or Ethereum because of the technological aspect? Don’t feel ashamed or afraid if this is the case because many people are just like you.
They have no idea which wallet is the right type for them to safely secure their assets. They do not know the difference between public keys and private keys. And because there is so much to learn, many beginner cryptocurrency investors tend to shy away from this opportunity.
I’m here to tell you that it doesn’t need to be this way. When you open up a Bitcoin IRA, your custodian will handle all of the difficult technical aspects on your behalf. Your job is to fund the account. And periodically log-in to see the results of your investments. And you also get to make your own trades in a self-directed account. This is certainly an exciting part of cryptocurrency IRA investing to boot.
So, if you’re afraid to begin investing in cryptocurrencies because of the technical aspects, please lay your fears to rest. As soon as you open a cryptocurrency IRA, all of the difficult technical parts are handled on your behalf.
As you can see, investing in a cryptocurrency IRA is incredibly beneficial right now. It provides a great way to make passive income, in one respect. It’s also an awesome opportunity for portfolio diversification.
And even better? You’ll have a custodian handle all of the technical aspects that you’d rather avoid. But best of all, cryptocurrencies are red-hot and rising high right now, so it’s definitely a lucrative opportunity!
“Pop culture advocate. Troublemaker. Friendly student. Proud problem solver.”