The concept of Bitcoin individual retirement accounts (IRAs) is still relatively new but it is also gaining in popularity. More and more people look for the best bitcoin IRA in order to secure their own financial future.Thankfully, because these accounts are becoming more popular, they are also more custodians offering them. Furthermore, they have made it increasingly easy to open and manage these accounts.
Opening the Best Bitcoin IRA
While each custodian will have their own process comma most follow a similar five-step approach. That is
- You fill out the form to request the opening of a Bitcoin IRA. This should be available on the website of your custodian.
- You will receive a telephone call or other form of contact to verify your identity.
- Your account will be opened, which usually takes no more than 24 hours.
- You start funding your account or roll over the funds from an existing IRA or 401k.
- You purchase your crypto funds and they are stored in a secure cold bitcoin wallet.
You can expect a good bitcoin IRA custodian to work with you to show you how to trade in bitcoins. Often, they will give you access to a demo account or run you through a live account so that you know how to purchase Bitcoin. It is very important that you investigate the Bitcoin wallets that they offer. This is because cryptocurrencies do not have any physical value and essentially exist only digitally. This means there is always a risk of hacking and, this instantly demonstrate what is both the greatest strength and the greatest weakness of cryptocurrencies. That is that the transactions are fully anonymous. In other words, should someone be able to access your wallet, they would be able to empty it and you would never know where things went. Not just that, transactions can never be reversed.
So should you purchase cryptocurrencies and invest in them within your IRA? Opinions are divided. Some experts feel that cryptocurrencies are to volatile to present a good investment choice, but history has proven them wrong so far. Naturally, they will say that the tremendous boom in the value of cryptocurrencies experienced in 2017 was a fluke and will not be repeated. It is impossible to determine whether or not this is true. What are financial experts do agree on, however, is that a strong investment portfolio is a diverse investment portfolio. This would suggest that investing at least some of your retirement funds in cryptocurrencies is a good decision. The only way to do that is by opening a bitcoin IRA. Since you can also invest in more traditional stocks and bonds through these accounts, the logical conclusion is that you should switch to a bitcoin IRA.
At the same time, you need to be realistic about the risks associated with these Investments. However, does risks exist with any investment period it is up to you to consider whether or not you are comfortable with that risk. At the same time, history has shown bitcoin to be incredibly resistant to inflation and therefore a safe haven.