Individual Retirement Account

What Is a BITCOIN INDIVIDUAL RETIREMENT ACCOUNT?

A Bitcoin IRA is another name for a self-directed IRA. Self-directed individual retirement accounts allow you to invest in alternative asset classes, like real estate, precious metals and cryptocurrency, which are excluded from conventional IRAs.
“Under the umbrella of self-directed IRAs, Investors worldwide have the option to purchase a wide variety of alternative assets.

The Retirement Industry Trust Association (RITA), a self-directed IRA industry group, estimates that currently between 3-5% of all IRAs are invested in alternative assets.
Investing in Bitcoin for retirement may enhance your investment returns as well as provide broader diversification.

HOW DOES A BITCOIN IRA WORK?

In general, a Bitcoin IRA works much like a normal IRA, except you’re investing your money in cryptocurrency instead of mutual fund shares. You’re able to choose between traditional and Roth self-directed IRAs and benefit from their associated tax advantages. You can roll over funds from a normal IRA or 401(k) to a self-directed IRA.

ADVANTAGES OF BITCOIN IRAS

Bitcoin IRAs offer investors several advantages, including:
•  Diversification. “Cryptocurrency is an asset class that is not correlated with stocks and bonds, which is what most Americans hold in their retirement accounts,”. This may help protect your retirement balance, even though crypto may be volatile in its own way.
•  Potential for high returns. “Bitcoin is very volatile, but with volatility comes the potential for huge gains.