Is Bitcoin A Smart Investment Strategy?

Best Bitcoin IRA Companies Reviewed

Last Update January 10th, 2020

Regal Assets Logo - Start A Crypto And Precious Metals IRA

Rating:

Website:regalassets.com
Phone:(833) 863-2020
Headquarters:Beverly Hills, California
Founded:2010
Minimum:$10,000
More Information:Read Review

BitIRA Logo

Rating:

Website:bitira.com
Phone:(877) 465-2950
Headquarters:Burbank, California
Founded:2017
Minimum:$20,000
More Information:Read Review

Bitcoin IRA Company Logo

Rating:

Website:bitcoinira.com
Phone:(818) 381-0254
Headquarters:Sherman Oaks, California
Founded:2015
Minimum:$3,000
More Information:Read Review

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.

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What Is Bitcoin?

Bitcoin LogoBitcoin is a global currency. It works the same in every country around the world. The bitcoin symbol (BTC) is 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.

Facts About Bitcoin

  • The supply is limited. Only 21 million bitcoin can ever be mined.
  • As of 2020, there are over 45 million bitcoin wallets.
  • Just like gold, bitcoin’s value does not correlate with the dollar and tends to move opposite to stocks & bonds.
  • The IRS has approved bitcoin as a form of currency.
  • Has the potential to become a global form of money.

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 transactions are verified on the blockchain with cryptography which leads to an immutable database.

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

Thanks to the blockchain and cryptography, bitcoin is uniquely decentralized. With little to no transaction fees, no debt and the ability to receive your payments within seconds, bitcoin is disrupting the way we send and distribute financial services and technology.

The best way to invest in bitcoin without worrying about the volatility of the price is a long-term investment.

Bitcoin Is Cryptographically Secure Money

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 make it easier for people to send and receive money globally.

With bitcoin, money can be sent from one end of the world to another transparently. So, if a traveler visiting the islands of Japan runs out of Yen, they can efficiently convert their bitcoin to their local fiat currency within seconds.

Bitcoin has already helped people during inflation. In Greece and in Cyprus, bitcoin was used as a store of value and wealth transfer between individuals, similar to how gold performed during the fall of the Roman empire and leading up to the French Revolution.

In unbanked and underbanked regions of the world, there are people who 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. Consider bitcoin to be your own trustworthy personal banking system akin to a Swiss bank account.

What Is Cryptography?

Cryptography is the practice and study of techniques for secure communication. Complex mathematical techniques encrypt and decrypt messages sent electronically. Cryptography protects transmitted data and ensures that information can only be used by those for whom it is intended.

Cryptography turns bitcoin’s blockchain into a system for keeping records based on mathematical trust and is used to create a decentralized and immutable peer-to-peer type of money.

Each participant is given a set of private keys that are assigned to transactions and act as a personal signature.

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 inflation.

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. Bitcoin is cryptographically secured digital currency.

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 authority can say this cannot happen.

Bitcoin is one of the very few transparent and borderless digital currencies out there.

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 main 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 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 bitcoin in a USB drive, paper or offline bitcoin hardware wallet such as the Trezor One, Trezor Model T or KeepKey.

To send or receive bitcoin, you will need a bitcoin wallet address or the recipients QR code. A cold storage wallet ensures that your bitcoin are safe in the event of a hack, electrical meltdown or Internet outage. The only way to access bitcoin inside cold storage is 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 exchanges & marketplaces 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 is a tax-advantaged retirement plan that gives investors a safe method for investing in the cryptoasset market. Many boomers desire a retirement plan that provides diversification in the event of inflation, and the Bitcoin IRA is a robust and accessible solution. Many people opt to rollover an existing 401k or IRA into bitcoin for the long haul.

An alternative asset is an asset with its own unique economic and value based characteristics that are separate from those of the primary investments of stocks and bonds. Bitcoin is considered an alternative asset by the IRS. Most advisors recommend a range of 6 to 25 percent of a client’s portfolio in alternative assets.

Retirement Accounts Eligible For A Bitcoin IRA Rollover

The following types of retirement accounts are eligible for rollover into a Bitcoin IRA:

  • 401(k)
  • 403(b)
  • Roth IRA
  • Traditional IRA
  • SEP IRA
  • SIMPLE IRA
  • Pension plans
  • Various annuity plans
  • TSP (Thrift Savings Plans)

The most common rollover is the 401k to bitcoin IRA rollover.

Rollover 401k To Bitcoin IRA

If you already have an IRA or 401k, either traditional or Roth, then you have the option of rolling over some or all of its funds into bitcoin. A Bitcoin IRA is the same as any other IRA, only instead of holding paper assets, a Bitcoin IRA holds digital currencies.

A 401k to bitcoin IRA rollover is a transfer of paper assets to digital currencies. The rollover process is the same as for any other type of retirement fund. A notable share of the legwork is done by the new company contacting the old company directly.

Best Bitcoin IRA Companies

CompanyWebsiteHeadquartersFoundedPhoneMinimum InvestmentFeesStorage & SecurityMore Information
Regal Assets LogoRegal Assets

regalassets.comBeverly Hills, CA2010(833) 863-2020$10,0001st Year Waived, $250 Annual FeeOffline Wallet + Cold StorageRead Review
BitIRA Logo - Cryptocurrency IRA Investment CompanyBitIRA

bitira.comBurbank, CA2017(877) 465-2950$20,000Fees vary by account type, call for more informationMulti-Signature Cold Storage, Inside Class-3 VaultsRead Review
Bitcoin IRABitcoin IRA

bitcoinira.comSherman Oaks, CA2015(818) 381-0254$3,000Initial one time service fee, call for more informationBitGo Cold Storage IRA WalletRead Review

Contribution Limits

If you are under the age of 50, you are able to contribute up to $6,000 per year. This limit increases to $7,000 annually once you turn 50 years of age.

Fees

Typically, a rollover will include a one-time service fee. This fee depends on the custodian and account type you are rolling over from.

Give your chosen custodian a call to learn more about their investment fee structure.

Storage And Security

Your cryptocurrency is secured within a multi-signature cold storage wallet, and only you have access to the private keys. Your cold wallet is stored 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.

Insurance

Most Bitcoin IRA custodians offer end-to-end insurance of your digital assets and private keys.

With BitIRA, your assets are insured from any type of theft, fraud or hack.

Bitcoin IRA has a $100 million dollar policy that covers private keys held 100% by BitGo Trust Company or BitGo, Inc in the event of a third-party hack, copying, or theft of private keys.

What Cryptocurrencies Can I Store In A Bitcoin IRA?

Most Bitcoin IRA custodians give their investors the option to invest in cryptocurrencies that have a large market capitalization, are supported by a strong community, and boast a strong developer base. A Bitcoin or Cryptocurrency IRA is not limited to just bitcoin but rather gives investors the ability to invest in a wide variety of cryptographically backed digital securities.

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

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Ripple (XRP)
  • Dash (DASH)
  • Stellar Lumens (XLM)
  • Monero (XMR)
  • Ethereum Classic (ETC)
  • Zcash (ZEC)

Why You Should Invest In A Bitcoin IRA

Self Trade Crypto In Your IRA or 401k

Bitcoin IRA, based in Sherman Oaks, CA, offers a unique way to securely hold a cryptoasset portfolio.

A self-directed IRA is legally structured as a traditional or Roth IRA and gives you full control of the assets you own.

Since digital currencies are considered capital assets, holding bitcoin within a tax-advantaged retirement account is ideal.

Not all custodians are created equal. The best bitcoin IRA companies offer self-service (for example: Bitcoin IRA). Find a reliable custodian that can help you store, secure and insure your bitcoin in a retirement account.

Hiring A Bitcoin IRA Custodian

Choosing the right custodian for your Bitcoin IRA requires due diligence on your part to research the company, including their reputation, customer service, 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 involved with opening an account and alleviate any concerns you may have.

If you have a specific question regarding opening a Bitcoin IRA, give your favorite custodian a call directly so they can answer it for you.

The Simple Stress-Free Bitcoin IRA Rollover Process

1. Fill out an account application

2. The account is established within 24-48 hours

3. Receipt of the signed transfer request by both custodians

4. Fund your account

5. 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 Bitcoin IRA Companies Reviewed

A Bitcoin IRA allows retirement account holders the ability to invest in bitcoin and other types of cryptocurrencies. These self-directed IRAs offer diversity for your retirement portfolio. Investing in a Bitcoin IRA can be lucrative, as long as your finances are stable enough to take on the risk involved with cryptocurrencies. Before making a major investment decision, it is a good idea to read the reviews of the company you decide to do business with and consult a qualified professional who can guide you with any questions you may have.

#1. Regal Assets

Regal Assets Precious Metals And Cryptocurrency IRA ReviewRegal Assets is a company well known amongst investors for its precious metals 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 investors the power to invest in both hard assets (precious metals) and digital assets (cryptocurrencies).

The Regal Wallet program enables U.S. investors with an IRA the ability to rollover into bitcoin and/or any cryptoasset of their choosing.

The Regal Cryptos program grants international investors the ability to make cash investments in the cryptoasset 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 10 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 bitcoin 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.
  • Maintains an A+ rating with the Better Business Bureau, AAA rating from the Business Consumer Alliance and is ranked #20 by INC 500.

Summary: Remember to always do your due diligence as an investor, however, it seems that Regal Assets has developed a robust platform for long-term crypto and metals investments.

We recommend the Regal Wallet for the serious investor who is considering a bitcoin IRA rollover. The Regal Cryptos account is available for international investors to safely invest in cryptoassets with cash. With the Regal IRA, investors have the power to invest in both cryptoassets and precious metals including gold, silver, platinum, and palladium.

REMEMBER: If you are investing more than $10,000, Regal Assets will cover the account setup fees and storage charges for the full first year.

Regal Assets Company Information:

Address: 280 South Beverly Drive, 5th Floor Beverly Hills, CA 90212

Country: USA

Phone: +1 (833) 863-2020

International: 001-833-863-2020

Bitcoin IRA – USA Investors: www.regalwallet.com

International Investors: www.regalcryptos.com

Website: www.regalassets.com

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

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#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. Investors who want a self-directed Digital Currency IRA account with BitIRA can rollover any type of eligible retirement account including an existing 401(k), 403(b) or any IRA classification, such as Traditional, Roth, SEP, and SIMPLE.

As the world’s most secure Digital Currency IRA, BitIRA offers an IRA that is fully-insured against any cases of hacks, fraud, theft, and mistakes.

Why Invest With BitIRA?

  • Fully compliant with the CryptoCurrency Security Standards (CCSS).
  • 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.
  • Each investor has their own personal, encrypted cold storage hardware device that can only be accessed through multi-signature security.
  • BitIRA gives investors access to purchase eight cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple, Litecoin, Zcash and Stellar Lumens.
  • Learn how to supercharge your IRA with a free guide.

Summary: For those with an existing 401k or IRA, 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. Your investment will be secured with cold storage inside of Class-III vaults, making it one of the world’s most secure digital currency IRAs. With a $20k minimum requirement we recommend the BitIRA company for serious investors who want an ultra-secure IRA to invest in digital currencies. Learn more today.

BitIRA Company Information:

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

Country: USA

Phone: +1 (877) 465-2908

Website: www.bitira.com

BBB Rating - BitIRAFinancial Crimes Enforcement Network EmblemBusiness Consumer Alliance AAA Rating

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

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#3. Bitcoin IRA

Bitcoin IRA Company LogoBitcoin 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.

The company mission of Bitcoin IRA 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 Bitcoin IRA?

  • 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.
  • 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: Bitcoin IRA is a one-of-a-kind investment opportunity. Those with an existing 401k or IRA 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 $3,000 minimum requirement Bitcoin IRA is a great company for investors who want to set up a simplified cryptoasset portfolio.

Bitcoin IRA Company Information:

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

Country: USA

Phone: +1 (818) 381-0254

Website: www.bitcoinira.com

BBB Rating - Bitcoin IRAThe Kingdom Trust Company Logo

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.

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“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 Bitcoin IRA custodians give their investors the option to invest in cryptocurrencies that have a large market capitalization, are supported by a strong community, and boast a strong developer base. A Bitcoin or Cryptocurrency IRA is not limited to just bitcoin but rather gives investors the ability to invest in a wide variety of cryptographically backed digital securities.

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

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Bitcoin Cash (BCH)
  • Ripple (XRP)
  • Dash (DASH)
  • 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 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 involved with opening an account and alleviate any concerns you may have.

If you have a specific question regarding opening a Bitcoin IRA, give your favorite custodian a call directly so they can answer it for you.

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