The ugly truth is paychecks aren’t just enough anymore nowadays to save for retirement. This has compelled more and more people to make sound investment decisions to grow their savings for the long term.
If you’re planning to build a solid nest egg for your retirement, then you should definitely think about adding bitcoin to your retirement portfolio.
Investing in Bitcoin and other cryptocurrencies could potentially set you up for whopping returns in the future. Even though the value of these cryptocurrencies tends to fluctuate periodically, history has shown that these values actually shoot up in the long run.
Apart from the promise of massive returns, you will also get to diversify your portfolio to even out your risks in case your other investments are compromised.
However, with crypto being something relatively new, making the investment can seem a bit complex. To make the process a lot easier for you, here’s a comprehensive guide on how you can open a cryptocurrency IRA to deposit and store your cryptos.
1. Find a Cryptocurrency IRA Custodian
A crypto or Bitcoin IRA custodian refers to a provider, usually a company or institution, that allows you to open a self-directed IRA. So, once you’re ready to start investing in crypto for your retirement, the first thing is to look for an ideal custodian.
There are numerous providers in the market today, which means that you’ll need to compare several options to figure out which one works best for you. Consider factors such as the type of accounts offered, cost of opening an account, supported cryptocurrencies, account minimums, and the fees.
2. Fund Your Self-Directed IRA Account
Once you’ve opened a retirement account with your preferred provider, it’s time to fund your account. Most custodians provide multiple ways of depositing funds into the account. In fact, many will allow you to link your IRA account directly to your checking account for easy money transfer.
How much you deposit will depend on how many coins you want to acquire, the minimum required to start, and the associated fees.
3. Buy Crypto in a Crypto Exchange
After setting up your IRA and funding your account, the final step is to buy your coins so that you can start trading. This step requires what’s known as a crypto exchange. A crypto exchange is a platform that works like the stock market, allowing you to buy and sell different kinds of cryptocurrencies.
Crypto IRA custodians usually work with a crypto exchange to make it easier for you to trade. Some only work with one trusted exchange, while others allow you to pick your own from several. Whatever the case, always make sure you choose a platform that aligns with your goal.
Once you buy your coins, you can either store them or continue trading for a profit.
Grow and Diversify Your Retirement Portfolio with Cryptocurrency
Cryptocurrency is the hot topic of the town right now, with a lot of people adding Bitcoin, Ethereum, and the likes to their IRA. The good news is that it’s not too late for you to invest in cryptocurrency, even as a beginner. The process is pretty simple as highlighted above, so try and not get left behind wishing you’d have invested earlier.