Numerous Bitcoin millionaires have born out of this crypto evolution. Some were fortunate to find Bitcoin early in 2010-2011, and those who missed BTC’s to the moon really were able to make a fortune this year (in 2017) with Ethereum’s boom.
Still, many others are betting on and searching for the next Bitcoin or Ethereum.
And why not? It’s a clever thing to do in this ripe time of the evolution of cryptocurrencies.
So it’s a living reality that many early adopters, investors, and speculators have benefited from this crypto boom. At the same time, some people are not interested in every day using and selling of Bitcoin and/or other cryptocurrencies.
This is because they are happy with their current jobs/business or because they are not that tech savvy enough to use the rapidly evolving ecosystem of Bitcoin and cryptocurrency wallets.
That’s why large chunks of such kinds of people are being left behind in this boom. They just want to invest and HODL cryptos to reap the benefits during their retirement while enjoying some tax benefits on their IRA or 401(k).
To aid such strata of people, Bitcoin IRA and Ethereum IRA programs have been launched, where users can invest with tax benefits and reap excellent results at retirement.
But before we discuss Bitcoin and Ethereum IRA’s, let see what an IRA is. ..
What is an IRA?
An individual retirement account or IRA is a form of “individual retirement plan”, provided by many financial institutions, that provides tax advantages for retirement savings in the United States.
There are three main types of IRAs:
But such IRAs don’t have as promising results as Bitcoin or Ethereum IRAs.
What is a Bitcoin IRA and Ethereum IRA?
Bitcoin and Ethereum IRAs are different from traditional IRAs. In these IRAs, you can invest in Bitcoin and Ethereum instead of investing your funds into traditional options such as stocks, bonds, or real estate.
By using these types of IRAs over traditional IRAs, aspiring retirees can hold real BTC and ETH in their retirement accounts.
Interesting facts on Bitcoin and Ethereum
- At the time of this writing, the total market cap of cryptocurrencies stands at $117 billion, out of which Bitcoin and Ethereum together have a share of +65% ($76 billion). This is humongous growth in just 9 years.
- In 2017, Bitcoin has witnessed an incredible 500%+ growth from less than $500 per unit to over $3,000 (at the time of this writing).
- In 2017, Ethereum has witnessed an incredible 19,000%+ growth from less than $1 per unit to over $200 (at the time of this writing).
Did You Know? If you invested $1,000 in Bitcoin on 1st January 2011, you would now have made $11,165,667 in profit. You can check other projected calculations here.
In light of these facts, Bitcoin and other cryptocurrencies are excellent investment options.
Benefits of Bitcoin and Ethereum IRAs
- IRAs (i.e. government approved retirement funds), can be linked to cryptocurrencies like Bitcoin and Ethereum. It means that these IRAs are approved and affiliated by the United States.
- Currencies like Bitcoin are resistant to inflation, real estate bubbles, and stock market crises. This makes them a safe haven for investments for aspiring retirees.
- Cryptocurrency IRAs provide you with options which you can find in “normal” IRAs for investments such as Rollover, Traditional, or Roth IRAs.
- When you invest in Bitcoin or Ethereum IRAs, you get the same tax benefits as you would on regular IRAs and 401(k)s.
So, who is providing these services for such IRAs?
One such reputable company is BitcoinIRA which allows its customers to invest in Bitcoin and Ethereum IRAs. They are the very first company who brought this concept to the market, and they are backed by the US government.
They work with leading financial experts of the industry and also exercise the highest quality of security to secure their customer’s cryptocurrency funds.
They have to do this because of the nature of cryptocurrencies like Bitcoin, as they are quite fragile to be stolen or lost if not kept properly. They use multi-signature wallets such as BitGo, a multilayer system to provide maximum security for your Bitcoin IRA.
Moreover, they allow their customers to freely decide how much percentage they want to allocate to Ethereum or Bitcoin in a self-directed manner.
They also provide an inbuilt calculator to calculate your projected earnings if you would have invested in Bitcoin IRAs before. Nevertheless, this tool is still a perfect medium for you to analyze the power of Bitcoin investments.
Here is a worked out example where we have assumed a $50,000 investment in 2012:
How Bitcoin IRA Works
Typically a Bitcoin IRA works in this fashion:
- Customer fills out a Bitcoin IRA form.
- Customer gets a call for verification.
- Account gets opened within 24 hours.
- Customer funds their account or rollover of funds.
- Customer’s crypto funds are bought and are put into a cold or secure wallet.
Here is the working process of BitcoinIRA:
Disclaimer: This is in no way investment advice or an endorsement for BitcoinIRA. We only provide information and education for our coinsutra.community. We strongly recommend you to do your due diligence if you choose to invest in such IRAs.
I hope you found this article interesting and informative. I will be back with another write-up on the best Bitcoin and cryptocurrency IRA companies with their fee structures and other relevant details coming up soon.
So until that time, stay tuned to CoinSutra and keep sharing the Bitcoin revolution!
Here are hand-picked articles for you to read next:
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- These Are The 5 Best Use Cases Of Ethereum Smart Contracts
- A List Of Merchants Accepting Ethereum In 2018
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An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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