Diversification is essential to the success of your retirement portfolio, as it ensures your investments will not be overly dependent on one another. One way to diversify your retirement investments is by including cryptocurrencies in your IRA.
One of the groups you can explore when investing in cryptocurrencies for your IRA is BitIRA. BitIRA is a Burbank-based organization helping investors create and manage IRAs with digital currencies since 2017. It has been providing support to investors since Bitcoin and other similar currencies became increasingly visible on the market.
You’ll find a thorough assortment of crypto IRAs through BitIRA. The company will help you learn how to invest in cryptocurrencies for retirement income and keep your funds secure and safe from loss.
Keep reading to learn more about what makes BitIRA an intriguing option for your alternative investing needs.
Pros and Cons of Investing In BitIRA
Be sure to look at the positive and negative aspects of BitIRA before investing with the company. Here are a few points to note:
Pros
- Your crypto keys will be kept safe in cold storage, preventing others from accessing your data.
- All investments with BitIRA are insured.
- You can roll over an older IRA or another retirement plan into the IRA you establish with BitIRA.
- The BitIRA website has extensive resources informing people about how cryptocurrencies work and how to invest in them.
Cons
- There aren’t many currencies available for order here.
- The minimum investment of $5,000 may be too high for some.
- It can take weeks to set up an account.
Top Benefits of Investing With BitIRA
A Security Approach To Handling Cryptocurrency
BitIRA will ensure your funds will stay safe as you invest in cryptocurrencies for your IRA. BitIRA uses a cold storage wallet system for keeping your funds intact. Cold storage entails storing your cryptocurrency keys away from your crypto wallet. The keys will go somewhere that is not connected to any network or online link.
Cold storage involves your keys being kept in a grade-5 bunker that is safe and secretive to ensure hackers won’t steal your currency data. Since your IRA is kept secure through cold storage, the risk of your funds being lost will be minimal.
Works For Many Investments
You can set up a traditional or Roth IRA with BitIRA, but those aren’t the only investments the website supports. BitIRA can also help you roll over money from another IRA, 401(k), 403(b), or Thrift Savings Plan into the IRA you establish with BitIRA. The service can complete this effort without charging extra fees.
Full Insurance
Your deposits with BitIRA will be safe, as they are insured with Equity Trust Company and Preferred Trust Company, the two custodians BitIRA uses for handling accounts. These organizations will review your current deposits and provide free insurance on all your cash deposits.
Cash deposits with ETC will be insured at up to $3.75 million, while cash deposits held by PTC have insurance at $250,000 for each account. These insurance totals are similar to what FDIC provides for traditional banks.
All IRA Functions Are Self-Directed
All IRAs available from BitIRA are self-directed IRAs, meaning you have more control over how your IRA works. Traditional IRAs have limits over what you can invest in, as most providers will not interpret digital currencies as investment options. A self-directed IRA allows you to open your retirement investments to more choices like cryptocurrencies.
A self-directed IRA requires a trustee or custodian that can support nontraditional investments. BitIRA operates as a custodian, meaning it provides connections to cryptocurrencies for IRA purposes.
Top Reasons To Not Invest With BitIRA
Not Many Crypto Options
While you can invest in various cryptocurrencies with BitIRA, the available options are limited. BitIRA supports more than fifteen cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Uniswap, Maker, Yearn Finance, and Stellar Lumens.
There are more than 20,000 different cryptocurrencies available today. But you will not get access to most of them on the BitIRA platform. Be sure to review all the options available to see which ones are the most viable for your investing needs.
Verification Takes a While
You can expect to wait about one to three weeks to get your BitIRA account ready. While BitIRA works hard to verify the accounts of all people looking to start new IRAs, the process for doing so takes a while. The group doesn’t provide any options for expediting the opening process either, so it is hard to tell how long it will take before you can start investing.
How BitIRA Works
BitIRA uses a few steps to help you invest in cryptocurrencies. First, you will need to provide the required documentation to a digital currency specialist for help. The specialist will consult you on how to handle a roll over, what fees are necessary, and what investment options are available.
ETC or PTC will be used as your custodian for your account. Your application for an IRA will be processed in a few weeks, and you can get started investing in currencies after the account opens.
You will buy and sell your digital currencies on the Genesis exchange, the official partner exchange of BitIRA. Your assets will go into cold storage until you request the confirmation keys for your currency wallet. You can track the value of your IRA as crypto prices change.
A Final Note on BitIRA
BitIRA is appealing to people who want to diversify their retirement investments. Cryptocurrencies are intriguing for how they are liquid and common and can be a hedge against inflation.
BitIRA is helpful because it simplifies the crypto investing process. You can link currencies to your IRA and keep them secure in cold storage. Everything is also insured, so you never need to worry about losing all your funds for any reason.
BitIRA is available for investors looking for something appealing for retirement purposes. You can contact BitIRA to get started on the path to retiring with crypto today. Remember, BitIRA requires a $5,000 minimum initial investment, plus there is a $195 annual maintenance fee and a 0.05% fee for crypto storage. But the charges and requirements are worthwhile, as you will have more control over your IRA with BitIRA.
FAQs
How much of a minimum investment do typical crypto IRA firms require?
Expect to spend at least a few thousand dollars on your initial investment.
Are there withdrawal limits with BitIRA?
BitIRA does not impose any withdrawal limits, but there will be a 10% penalty for withdrawals from people under 59-1/2. This rule is consistent with many other IRAs.
How does cold storage work for a cryptocurrency?
Cold storage entails storing cryptocurrency through a platform that does not connect to the internet. You will have to make a request with BitIRA to access your crypto funds before making any changes to your IRA. The work requires BitIRA to gather your wallet keys from cold storage, ensuring those keys are only accessible when necessary.
What Bitcoin variants does BitIRA support?
In addition to traditional Bitcoin, BitIRA also supports Bitcoin Cash. Bitcoin SV, Wrapped Bitcoin, Bitcoin Gold, and other Bitcoin offshoots are not covered as of August 2022.
Risk Disclosure: Any investments come with an inherent risk, where you could end up making less money than what you put in. Before investing your hard-earned cash, be sure to speak with licensed professional financial advisor first. Always remember that past performance is not an indication of future returns.
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