Is Bitcoin A Smart Investment Strategy?

What you should know about Bitcoin as an investment and store of value before the next major financial crisis now.

Last Update September 21st, 2018 Welcome to Smart Bitcoin Investments! If you want to find out more about BTC financial services including Bitcoin IRA Reviews, Rollovers, Marketplaces, Exchanges, Wallets, and Knowledge, you’ve come to the right place.

We are here to make your Bitcoin Investment decisions (and life) a bit easier, so grab a cup of coffee, sit back and read on about the best way to plan for your financial future.

On this page, you will find absolutely everything you need to know about investing in Bitcoin – also known as The Internet Of Money or Digital Gold.

But before we dive into the details, we’d like to take this time to answer the most frequently asked questions about Bitcoin.

Disclosure: The owners of this website may be paid for sales or leads generated from recommendations or links to various investment opportunities. We strongly recommend seeking the advice of your financial adviser before making any investment.

SmartBitcoinInvestments.com Home Page Cover Photo

What Is Bitcoin?

BitcoinsBitcoin is a global currency. It works the same in every country around the world. The Bitcoin symbol (BTCis the same everywhere.

Bitcoin is essentially “free market” money in the sense that it has purchasing power in its own unique way. This money is a purely peer-to-peer version of electronic cash which allows online payments to be sent directly from one party to another without going through a financial institution.

Check out the original Bitcoin whitepaper by Satoshi Nakamoto if you want to learn more about the fundamentals of Bitcoin and the Blockchain technology.

How Safe is Bitcoin?

Buy Bitcoins in an individual retirement accountBecause Bitcoin is a decentralized currency, it allows anyone to accept a private digital transfer of value from anyone else in the world instantly. So, instead of sending your money through a remittance service like Western Union or a third party such as a Bank or even PayPal, this transaction system is uniquely peer-to-peer.

Bitcoin is the same digital currency across borders and can be converted into nearly any local fiat currency or precious metal on request.

With little to no transaction fees, no debt and the ability to receive your payments within seconds, what’s not to like?

The best way to invest in Bitcoin without worrying about the volatility of the price is a long-term investment. Thanks to the Blockchain and cryptography, Bitcoin cannot be managed or manipulated by a central organization.

Bitcoin Can’t Possibly Be The Greatest Form Of Money Ever Invented….. Can It?

Bitcoin is the first cryptographically secured currency of its kind and will continue to garner the lion’s share of the media attention.

The potential of Bitcoin to shape the global economy is immense.

The currency has the potential to take on the remittance market and come out on top in every aspect.

Remember, it only takes an instant to send money from one end of the world to another. So, if a traveler visiting the islands of Japan runs out of Yen, they will be able to convert their Bitcoin to their local fiat currency within seconds.

Bitcoin has already helped people during a financial crisis. In Greece and on Cyprus, it has been used as a hedge to store and transfer value between individuals.

Bitcoin is inflation proof. The payments are instant and safe from the control of a centralized government. In unbanked and underbanked regions of the world, people completely skip ownership of money inside a bank and instead participate in the transfer of encrypted peer-to-peer banking through digital currencies such as Bitcoin on smartphones.

Why Bitcoin Is A Smart Investment Strategy

Bitcoin IRA RetirementHere at Smart Bitcoin Investments, we understand the history of money very well. We also understand the importance of protecting your family’s hard-earned investments (and peace of mind) in the case of a financial crisis.

Over the past 50 years, consumers went from using cash to pay for goods and services to using bank and credit cards. Mobile payments are the next evolutionary step, but they are still linked to your bank account.

If the free market – which is made up by all of the Bitcoin users around the world – decided that the new Bitcoin price should not be U.S. $250, but U.S. $10,000, no central authority can say this cannot happen.

Bitcoin is one of the very few transparent and borderless digital currencies that can both lose value – like fiat currency, and gain significant value – like precious metals.

Getting Started With A Bitcoin Investment

Step 1: Obtain Bitcoin

Bitcoin is not only an investment vehicle – it is a full bred currency with many uses.

Invest In Bitcoin IRA For Retirement

Obtaining your first Bitcoin can be an exhilarating and rewarding experience.

There are three ways to obtain Bitcoin: purchase it, mine it or trade for it.

Bitcoin mining is the trickiest of the three, so to start with it’s best to go ahead and purchase your first Bitcoins from a trading platform such as LocalBitcoins or an exchange such as Paxful, Coinmama, CEX.IOCoinbase or Changelly.

Step 2: Choose A Secure Bitcoin Wallet For Cloud & Cold Storage

After you purchase Bitcoin, you will want to immediately transfer it over to a Bitcoin Wallet to keep it safe.

Bitcoin wallets range from paper to cloud to mobile and desktop wallets to even physical hardware wallets.

Once you acquire enough coins that losing them would be painful, you should move them to a hardware wallet – a method commonly referred to as cold storage.

You could compare it to a bank moving customer funds into a vault rather than keeping it at the bank teller desk. Methods of cold storage include keeping Bitcoins in a USB drive, paper or offline Bitcoin hardware wallet such as the KeepKey, Ledger Nano S, or Trezor. All it takes to send & receive transactions is a Bitcoin wallet address, which can be sent using a QR code. A cold storage wallet ensures that your Bitcoins stay safe and accessible in the event of a hack, electrical meltdown or Internet outage. The only way to access Bitcoins inside cold storage and transfer coins between individuals would be to use a private key.

Side note: Most of the news stories about Bitcoin getting “hacked” are false. The Bitcoin network itself is decentralized, with no point of failure – much like the Internet – meaning, it’s impossible to hack. What you should really look out for are Bitcoin marketplaces & services getting hacked, such as the case with Mt. Gox in 2011.

Did You Know? A $200 INVESTMENT IN BITCOIN IN 2011 WOULD BE WORTH $1,450,604 USD TODAY!”

Why Choose a Bitcoin IRA?

Bitcoin Roth IRA 401kWhat if you could protect your family’s nest egg by diversifying in one of today’s most bullish investment vehicles?

A Bitcoin IRA, or Individual Retirement Account, is a personal financial plan which provides investors with a method of investing in the cryptocurrency market. Many Boomers desire a private pension plan that is backed by safety in the event of a crisis, and the Bitcoin IRA offers a robust and accessible solution. The IRS provides a list of investments one can make in an IRA.

If you invest your IRA in collectibles, the amount invested is considered distributed in the year invested and you may have to pay a 10% additional tax on early distributions.

Here are some examples of collectibles (Source):

  • Precious Metals
  • Artwork
  • Rugs
  • Coins
  • Cryptocurrency

As a tangible asset, Bitcoin has historically held a value and an appeal that is unmatched by any other tradable good or commodity. It is universally recognized as a secure and trusted store of private wealth and is regarded favorably as a secure safe haven for investors during periods of instability or uncertainty.

Every collectible invested in through an IRA enjoys the same tax advantages as any other Individual Retirement Account.

Other Things To Know About Bitcoin:

 

The Simple Stress-Free 4 Step Bitcoin IRA Rollover Process

1. Fill out a Bitcoin IRA Form

2. Set up your account in 24 hours

3. Fund your account

4. Put your Wallet in Cold Storage

 

“Three eras of currency: Commodity based, e.g. Gold. Politically based, e.g. Dollar. Math based, e.g. Bitcoin.” – Chris Dixon, Co-Founder of Hunch

 

The Best Cryptocurrency IRA Companies Reviewed

 

#1. Regal Assets

Regal Assets Precious Metals And Cryptocurrency IRA ReviewRegal Assets is a company well known amongst investors for its precious metal and Gold IRA. Recently they have expanded their services to allow cryptocurrency investments. They currently offer three programs:

The Regal IRA program is the world’s first Alternative Assets IRA that gives you the power of investing in both hard assets (precious metals) and digital assets (cryptocurrencies).

The Regal Wallet program enables U.S. investors with an IRA to invest in Bitcoins and/or any other cryptocurrency of their choosing.

The Regal Cryptos program grants international investors the ability to make cash investments in the cryptocurrency of their choosing (minimum $5,000) and store the private keys within secure vaults.

Why Invest With Regal Assets?

  • The highest rating profile in the precious metal industry for 9 years in a row.
  • The only company to offer investors the benefit of both an offline wallet and cold storage. Unlike a cloud wallet, an offline wallet is completely theftproof and hackerproof. Cold storage ensures that your cryptocurrency assets are as secure as Gold assets in a well-guarded vault.
  • Your crypto investment is protected in the case of a physical or natural disaster and secure from computer crashes, malware, spyware or viruses.
  • Easily access your Bitcoins with private keys which are safely stored in an impenetrable offshore vault located in a crypto-friendly jurisdiction.
  • All cryptocurrency investments are fully insured with the Lloyd’s of London.
  • Featured in Forbes, Smart Money, and The Huffington Post.

Summary: Remember to always do your due diligence as an investor, however, it seems that Regal Assets has developed a virtually flawless process for long-term Bitcoin investments. We recommend the Regal Assets company only for the serious investor who is considering an investment in cryptocurrency or a 401k to Bitcoin IRA rollover. Regal Cryptos is now available for international investors to safely invest in Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Stellar Lumens (XLM), Monero (XMR), Zcash (ZEC), and others.

 

Get Started Now Learn More

 

Regal Assets Company Information:

Address: 200 West Highway 6, 4th Floor Waco, TX 76712

Country: USA

Phone: +1 (833) 863-2020 (US and Canada; International 001-833-863-2020)

Bitcoin IRA (USA Investors): www.regalwallet.com

Cash Investments (International Investors): www.regalcryptos.com

Gold IRA: www.regalassets.com

Years in Business: 7 Years

 

BBB Rating Regal Assets Logo for BCA AAA Badge for Forbes Investment Guide INC 500 Featured Company Logo

 

 

 

Regal Assets is a proud member of the BBB and BCA and holds the highest rating a company can obtain from the BBB and BCA. Regal Assets has been a featured member of the BCA due to their high level of customer service. With a 5 star out of 5-star customer service review and over 711 reviews, Regal Assets has earned a preferred membership status with TrustLink. Inc. Magazine has ranked Regal Assets No. 20 in the United States for financial services landing Regal Assets on the Inc. Magazine 500 List, an exclusive ranking of the nation’s fastest-growing private companies. As an industry leader, Regal Assets has attracted the support and business of prominent figures and celebrities including Alan Thicke, Dennis Miller, Laura Ingraham, Jerry Doyle, Lars Larson and Alan Colmes. Regal Assets has been featured in Smart Money, Forbes, Market Watch, Reuters, The Street, And the Hollywood Reporter.

Disclaimer: The owners of this website may be paid for sales or leads generated from recommendations or links to various investment opportunities. We strongly recommend seeking the advice of your financial adviser before making any investment.

 

“Bitcoin is a techno tour de force.” – Bill Gates, Founder Of Microsoft

 

 

#2. BitIRA

BitIRA Logo - Cryptocurrency IRA Investment CompanyBitIRA is a company based in the United States that gives investors access to the growth potential of cryptocurrency, on a tax-deferred basis. Customers who want to invest in digital currencies within an IRA can roll over any type of eligible retirement account, such as an existing 401(k), 403(b) or IRA, to any IRA classification, such as Traditional, Roth, SEP, and SIMPLE.

As The World’s Most Secure Digital Currency IRA, BitIRA offers the world’s first Cryptocurrency IRA that is fully-insured against any cases of hacks, fraud, theft, and mistakes.

Why Invest With BitIRA?

  • CCSS Compliant – Fully compliant with the CryptoCurrency Security Standards (CCSS).
  • Fully Insured True Cold Storage – Your cryptocurrency assets are fully insured against any cases of hacks, fraud, theft, and mistakes, and are housed inside Class III vaults at a state-of-the-art depository, with UL & ULC-rated, multi-redundant security systems, and protected by armed guards around the clock.
  • Multi-Signature Personal Hardware Wallets – Each investor has their own personal, encrypted hardware device that can only be accessed through multi-signature security.
  • BitIRA gives investors access to purchase eight cryptocurrencies, such as Bitcoin, Ethereum, Ripple, and Litecoin.
  • Learn how to supercharge your IRA with a free guide on how a Digital IRA works.

Summary: For those with existing IRA’s or 401k’s, BitIRA has developed a way for investors to enjoy tax-deferred growth with digital currencies. As an investor working with BitIRA, you will have your own personal multi-signature hardware wallet and your investment will be secured with BitIRA’s true cold storage, making it one of the world’s most secure digital currency IRA’s. We recommend the BitIRA company for serious investors who want an ultra-secure IRA to invest in digital currencies such as Bitcoin, Ethereum, Ripple, and Litecoin. Learn more today.

 

Get Started Now Learn More

 

BitIRA Company Information:

Address: 3500 West Olive Avenue, Suite #730 Burbank, CA 91505

Country: USA

Phone: +1 (800) 299-1567

Website: www.bitira.com

BitIRA BBB Business Consumer Alliance Financial Crime Enrichment Network

 

 

In BitIRA’s opinion, Digital Currencies are a highly speculative investment, and anyone considering purchasing Digital Currency should have the financial flexibility and resources, and the risk tolerance, to lose the entire investment. BitIRA does not offer any opinion as to which Digital Currency(ies) to purchase, in what amount, and for how long a customer should hold such Digital Currency. Nor does BitIRA offer any opinion as to what percentage, if any, of a customer’s portfolio, should be devoted to alternative and highly speculative investments like Digital Currency. Historical performance is no guarantee of future results. BitIRA does not guarantee or represent that anyone purchasing Digital Currency will make a profit.

BitIRA is not an investment specialist, tax specialist, financial planner (certified or otherwise), or retirement advisor, and BitIRA does not provide investment advice, tax advice, financial planning services, or retirement planning or retirement-specific advice. BitIRA facilitates the purchase of Digital Currency, nothing more, and charges a fee for the service it provides (based on the transaction value). No fiduciary relationship, broker-dealer relationship, principal-agent relationship or other special relationship exists between BitIRA and its customers.

 

“You can’t stop things like Bitcoin. It will be everywhere and the world will have to readjust. World governments will have to readjust.” – John McAfee, Founder Of McAfee

 

 

#3. BitcoinIRA

BitcoinIRA.comBitcoin IRA is the first and only full-service solution that gives investors in the United States the ability to invest in Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, and Ethereum Classic with an IRA, Roth IRA, SEP IRA, SIMPLE IRA, 403b, or 401k into a self-directed Bitcoin IRA account. Their mission is to help smart investors achieve their goals by making the complex process simpler and safer by being fully transparent and straightforward.

Why Invest With BitcoinIRA?

  • Support staff will walk you through the process from start to finish.
  • Easily roll over funds from an existing IRA, Roth IRA, SEP IRA, SIMPLE IRA, 403b, or 401k into a self-directed Bitcoin or Ethereum IRA account.
  • Your investment is protected by a 3-keyed “Cold Storage” IRA wallet exclusive to Bitcoin IRA, powered by BitGo – the leader in multi-signature encryption technology.
  • One-time fee for complete services of setting up your account, rolling over funds, executing the exchange, and securing your funds.
  • Discover how the process works with a free Bitcoin IRA guide.
  • Freedom to choose your portfolio % between Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, ZCash, Stellar Lumens and more.
  • Investment is licensed, bonded and fully insured for up to $1 million dollars with the Lloyds of London.

Summary: BitcoinIRA is a one-of-a-kind investment opportunity. Those with existing IRA’s or 401k’s will find a plethora of options available for a retirement portfolio. Not only will you get to decide what you want in your custom portfolio, but you will have a specialist to walk you through every step of the way. With a $20k minimum requirement BitcoinIRA is a great company for investors who want to set up a simplified cryptocurrency portfolio. They offer a full-service cash solution available as well.

 

Get Started Now Learn More

 

BitcoinIRA Company Information:

Address: 15303 Ventura Boulevard, Suite #1060 Sherman Oaks, CA 91403

Country: USA

Phone: +1 (818) 381-0254

Website: www.bitcoinira.com

 

Comodo Secure

Secured with BitGo

 

 

 

Disclaimer: Bitcoin and other cryptocurrencies are a very speculative investment and involve a high degree of risk. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment, and a potential total loss of their investment. Information provided by Bitcoin IRA is not intended to be, nor should it be construed or used as investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest in cryptocurrency. An investment in cryptocurrency with Bitcoin IRA is not suitable for all investors.

•  An investor could lose all or a substantial portion of his/her investment in cryptocurrency.
•  An investment in cryptocurrency should be discretionary capital set aside strictly for speculative purposes.
•  An investment in cryptocurrency is not suitable or desirable for all investors.
•  Cryptocurrency has limited operating history or performance.
•  Fees and expenses associated with a cryptocurrency investment may be substantial.

The above summary is not a complete list of the risks and other important disclosures involved in investing in cryptocurrency. Any investment in cryptocurrency is subject to all the reviews, risks and disclosures set forth in the Customer Transaction Agreement and other definitive customer agreements.

 

“The Federal Reserve simply does not have authority to supervise or regulate bitcoin in any way” – Janet Yellen, Chair Of The Federal Reserve

 

#4. CoinIRA

Coin IRA - Cryptocurrency IRA ServicesCoinIRA is a BBB accredited Bitcoin IRA Company for investors who want to buy cryptocurrency with an IRA, 401k, 403b, SEP, or TSP. Investors can choose between a number of cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Ripple. CoinIRA is a subsidiary of Goldco and maintains the highest of standards for customer service with 5-star ratings on consumer trust sites such as Consumer Affairs, Trustlink, TrustPilot, and the aforementioned BBB.

Why Invest With CoinIRA?

  • Your self-directed IRA will reap the benefits of tax-deferred withdrawals.
  • CoinIRA is endorsed by former congressman Ron Paul which is fully approved by the IRS.
  • Fully insured in case of disaster or theft and secured in case of physical or natural disaster.
  • Provides individuals with the opportunity to invest in cryptocurrency with extremely low fees.
  • Employs a fully dedicated staff of personal consultants that will walk you through every step of the process.

Summary: CoinIRA makes it simple to access your assets; not only do they have great customer support, but also the dashboard simplifies the transaction process by only requiring a password to access your private keys. They give clients the option between a hardware wallet or online wallet to secure the investment. We recommend CoinIRA for investors who are looking for a reputable cryptocurrency exchange that can hold your assets within an IRA. Cash purchases are available.

 

Learn More

 

CoinIRA Company Information:

Address: 21215 Burbank Blvd Suite 600, Woodland Hills, CA 91367

Country: USA

Phone: +1 (888) 998-COIN (2646)

Website: www.coinira.com

BBB Logo

 

 

 

 

Disclaimer: CoinIRA is a subsidiary of Goldco. There is no assurance that Digital Currencies will achieve their objectives. Return and principal value will fluctuate and your portfolio, when redeemed, may be worth more or less than the original cost. Client should make certain that they understand the correlation between risk and return. Clients should consult an attorney or tax advisor for specific tax or legal advice. Cryptocurrencies involve risk and are not suitable for all investors. CoinIRA.com connects consumers to qualified custodians and facilitates cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed investments processed through CoinIRA.com have not been endorsed by the IRS or any government or regulatory agency. The IRS does not review, approve, or endorse any investments, including Bitcoins in an IRA. CoinIRA.com facilitates the self-directed transfer from an existing IRA or 401k to New Direction IRA. New Direction IRA is a non-fiduciary third-party custodian, registered and regulated in the state of Colorado. New Direction IRA is a passive, non-discretionary custodian that does not provide, promote, endorse, or sell investment products. CoinIRA.com will attempt to but cannot guarantee, that customers will receive tokens derived from “hard forks.” Cryptocurrencies are very speculative investments and involve a high degree of risk. Investors must have the financial ability, sophistication, experience and willingness to bear the risks of an investment, and a potential total loss of their investment. By using this website, you understand the information being presented is provided for informational purposes only and agree to our Terms of Use and Privacy Policy. CoinIRA.com relies on information from various sources, including clients and third parties, but cannot guarantee the accuracy and completeness of that information.

 

“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value.” – Eric Schmidt, CEO of Google

 

#5. CryptoIRA

Crypto IRA Company Logo BlackCrypto IRA is a company that gives investors the power to invest their 401k or Individual Retirement Account (IRA) in a self-directed Cryptocurrency IRA. This IRA allows individuals to purchase any variety of alternative investments within an IRA account such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, Stellar Lumens, Zcash. A Crypto IRA can give you diversification in your portfolio where others don’t.

Why Invest With CryptoIRA?

  • CryptoIRA uses Kingdom Trust Co as the qualified custodian who maintains custody of the assets, processes all transactions, maintains all relevant records, and files all requisite reports to ensure IRS compliance.
  • IRS-compliant. No penalties or investment caps.
  • The management team works with one of the leading online precious metals retailers in the USA.
  • Your cryptocurrency assets are securely stored in a wallet with BitGo, the leader in multi-signature encryption technology.
  • The application can be completed in 10 minutes or less.

Summary: The great thing about Crypto IRA is that you have the ability to choose between creating a tax-deferred Bitcoin IRA, Bitcoin Cash IRA, Ethereum Classic IRA, Ethereum IRA, Litecoin IRA, Ripple IRA, Stellar Lumens IRA, Zcash IRA or any variation thereof. Crypto IRA is an innovative company with full-compliance that provides a groundbreaking way for self-motivated investors to protect their retirement and savings account.

 

Learn More

 

CryptoIRA Company Information:

Address: 6101 W Centinela Ave #345, Culver City, CA 90230

Country: USA

Phone: +1 (888) 991-1049

Website: www.cryptoira.com

 

Comodo SecureSecured with BitGoThe Kingdom Trust Company Logo

 

 

 

 

Disclaimer: Cryptocurrencies are a speculative investment and involve a high degree of economic risk and burden including, without limitation, the possibility of complete loss of all invested capital. Investors must have knowledge and experience in financial and business matters, including knowledge regarding the cryptocurrency market, must be capable of evaluating the merits and risks of an investment in a cryptocurrency IRA, and must have the willingness to bear the risks of their investments.

Information provided by CryptoIRA.com, Inc is not intended to be, nor should it be construed or used as an investment, tax or legal advice, a recommendation, or an offer to sell, or a solicitation of an offer to buy, an interest in cryptocurrencies. CryptoIRA.com, Inc and its directors, officers, managers, agents, representatives, consultants, independent contractors, and employees have not made and will not make, at any time, any representations, guarantees, or warranties to any investor, expressly or implicitly, with respect to the cryptocurrency market or any investments made therein. Investors are expected to conduct their own independent examination of the cryptocurrencies market and are advised to consult with their own legal counsel or tax advisors. All investors should keep the following factors in mind when deciding whether to invest in the cryptocurrency market:

 

 

“I do think Bitcoin is the first encrypted money that has the potential to do something like change the world.” – Peter Thiel, Co-Founder of PayPal

 

 

Frequently Asked Questions (FAQ)

A self-directed Individual Retirement Account (IRA) is a personal investment portfolio provided by most institutions in the United States of America. The IRA gives investors a plethora of options to hold their retirement savings whether it is allocated to precious metals, stocks, bonds, real estate, cryptocurrency and the like.

Many investors desire a private retirement plan that is secure in the event of a crisis for generations, and a self-directed IRA offers a robust and accessible solution. The IRS provides a list of investments one can make in an IRA.

If you invest your IRA in collectibles, the amount invested is considered distributed in the year invested and you may have to pay a 10% additional tax on early distributions.

Here are some examples of collectibles:

  • Precious Metals
  • Artwork
  • Rugs
  • Coins
  • Antiques
  • Gems
  • Stamps
  • Cryptocurrency

(Source: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-investments)

Yes, using your existing IRA, it is possible to move your funds through the use of a rollover into a Bitcoin IRA or related cryptocurrency retirement account. If it is unclear, you may call your preferred custodian to see if your current IRA can be rolled over into your chosen type. Eligible retirement accounts that can be used to invest in cryptocurrency include:
  • 401(k)
  • 403(b)
  • Roth IRA
  • Traditional IRA
  • SEP IRA
  • SIMPLE IRA
  • Pension plans
  • Various annuity plans
  • TSP (Thrift Savings Plans)
On the Internal Revenue Service website, they have issued a Virtual Currency guidance: "In some environments, virtual currency operates like “real” currency -- i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance -- but it does not have legal tender status in any jurisdiction. The notice provides that virtual currency is treated as property for U.S. federal tax purposes. General tax principles that apply to property transactions apply to transactions using virtual currency. Among other things, this means that:
  • Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
  • Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply.  Normally, payers must issue Form 1099.
  • The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
  • A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.
Further details, including a set of 16 questions and answers, are in Notice 2014-21, posted on IRS.gov." (Source: https://www.irs.gov/newsroom/irs-virtual-currency-guidance)
An IRA rollover is a transfer of funds from a retirement account to another and can consist of a number of assets. If you would like to move your existing retirement account into cryptocurrency i.e. Bitcoin, a Bitcoin IRA rollover is an option you can take.
With a finite amount of Bitcoin available for mining, its value is determined by the market rules of demand and supply.

Thus, as the demand for this finite cryptocurrency increases, so will its value over the long term when compared to currencies that can be printed endlessly.

Considering the way the economy of money works, the decreasing value of the Fiat dollar due to inflation and also the current Gold price can affect the value of Bitcoin in a number of ways as well.

"Since 1913, the U.S. Dollar has lost 98% of its purchasing power." Smith, Michael (2012, January 23). Dollar Devaluation since 1913. Retrieved from: https://comparegoldandsilverprices.com/news/economics-101/dollar-devaluation-since-1913/

For those investors who practice diversification, the pure fact that Bitcoin is a hedge against the dollar gives it weight as an investment.

Most, typically Bitcoin IRA also known as Cryptocurrency IRA custodians, give their investors options between cryptocurrencies that have a long-standing reputation, are supported by communities globally, and boast a strong developer base. A Bitcoin or Cryptocurrency IRA is not limited to just Bitcoin but rather gives investors access to a wide variety of cryptographically backed digital securities.

Here are some of the cryptocurrencies you can invest in through a Bitcoin IRA:

  • Bitcoin (BTC)
  • Ripple (XRP)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Stellar Lumens (XLM)
  • Monero (XMR)
  • Ethereum Classic (ETC)
  • Zcash (ZEC)
If you don't see your chosen cryptocurrency provided by a custodian, either stay patient and wait for them to add it or go ahead and give them a call.
Here is a comprehensive list of retirement accounts that are eligible for a Bitcoin IRA rollover:
  • 401(k)
  • 403(b)
  • Roth IRA
  • Traditional IRA
  • SEP IRA
  • SIMPLE IRA
  • Pension plans
  • Various annuity plans
  • TSP (Thrift Savings Plans)
If you have a retirement account that is not listed, it may still be eligible for a rollover. In order to find out, you can directly call the company representatives to see which of your accounts will qualify.
Depending on which IRA custodian you choose, your private keys will be held in technologically sound hardware wallets and stored in a secure location. Your custodian will have more information on how they secure your private keys and funds.
  • With Regal Assets, your private keys are generated offline within a hardware wallet and stored in a private and secure facility monitored 24 hours a day, 7 days a week, 365 days a year. Regal Assets provides cold storage in an impenetrable offshore vault located in a crypto-friendly jurisdiction. Multisig is optional.
  • With BitIRA, your private keys are housed inside Class III vaults at a state-of-the-art depository, with UL & ULC-rated, multi-redundant security systems, and protected by armed guards around the clock. Each investor has their own personal, encrypted hardware device that can only be accessed through multi-signature security.
  • With BitcoinIRA, enlisting the help of BitGo - the leader in multi-signature encryption technology, your private keys are secured by a 3-keyed “Cold Storage” IRA wallet. Three unique keys are generated to ensure maximum security. These are kept with: (1) Your digital wallet, BitGo (2) Your Bitcoin IRA custodian, Kingdom Trust (3) Your backup key provider, Keytern.al. Additional layers of security including ID verification and voice confirmation are needed to execute a trade.
  • With CryptoIRA, enlisting the help of BitGo - the leader in multi-signature encryption technology, your private keys are secured by a 3-keyed “Cold Storage” IRA wallet. Three unique keys are generated to ensure maximum security. These are kept with: (1) Your digital wallet, BitGo (2) Your Bitcoin IRA custodian, Kingdom Trust (3) Your backup key provider, Keytern.al. Additional layers of security including ID verification and voice confirmation are needed to execute a trade.
  • With CoinIRA, your private keys are stored in multi-signature hardware or online wallets that are protected in case of physical or natural disaster. Each CoinIRA wallet requires a password to view the private keys.
With the growing popularity of Bitcoin, as well as other cryptocurrencies, and the correlating increasing value, it pays to hold onto your coins. The growth in value of Bitcoin in the foreseeable future does not appear to be slowing, only increasing with the maturity of the investment.
The best part of owning a Bitcoin IRA account is being able to take out distributions from your plan as either physical possession of your private keys or liquidation in cash. This provides exceptional value and is a great option to have if and when you plan on making withdrawals from your account. If you wish to liquidate your Bitcoin IRA for cash, ensure that your custodian offers an advantageous buyback program.

Any return on investment on the cryptocurrency in your Individual Retirement Account can be retained tax-free until a distribution is taken out. You also have the option of performing a rollover into another IRA account of your choosing.

Choosing the right custodian for your Bitcoin IRA requires due diligence on your part to research the company, including their reputation, customer service, buyback program and retirement plans offered.

The following factors should be considered before hiring a custodian:

  • Are they accredited with the BBB (Better Business Bureau)?
  • How many years of experience do they have?
  • In case of a physical disaster or emergency, how can I access my funds?
  • What kind of asset preservation program do they have?
  • Will you have your own representative or hotline should any questions arise?
A good custodian will minimize the risks and concerns you may have. Conducting your own research before choosing one is imperative for your individual needs.

 

Our Top Recommendation

9.9

Overall

9.9/10
shares