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Bitcoin Roth IRA- Why It’s An Important Investment Tool For Your Future

March 7, 2018

​Investing in traditional individual retirement accounts (IRAs) is an extremely important consideration.

If you’re starting to think about your retirement you want to know what your options are and you definitely want to make sure you’re going to have enough money when you get there. Bitcoin cryptocurrencies is a relatively new investment method, but it’s turning into a great option when you’re looking for your future.

A Bitcoin Roth IRA account is a new option that you, as one of a growing number of investors, definitely might want to consider for yourself and your own investment portfolio.

What is Bitcoin?

If you’ve never heard of Bitcoin it’s definitely about time you did. It’s actually a digital currency or cryptocurrency that allows you to buy, sell, and trade entirely online. There’s no need for physical cash for your investments.

What’s really great about this system is that it’s the longest-running type of cryptocurrency ever. The currency has actually been able to skyrocket prices because of the popularity and even though a lot of people (and companies) are still trying to figure out just how to make it all work, it’s definitely turning into an intriguing and profitable area for most people.

What’s really neat is that Bitcoin is actually branching into a range of different areas. Rather than just being a place to invest, you can actually use Bitcoin for your IRA as well.

You can use it in any form of retirement actually, including a Roth IRA, traditional IRA or 401(k). That means you’re going to have a whole lot more options and you’ll definitely be able to create something unique that actually has a lot of great features as well.

There’s plenty more to look at, however, before you decide if this is really what you want to do for your future.

How the Financial Climate is Improving Your Odds with Bitcoin

Have you noticed that the financial world doesn’t seem to be doing so hot right now? Well, it’s definitely not doing that great, but Bitcoin could be a way to change that.

Where hedge funds and other financial accounts are losing a lot of money year after year, Bitcoin is actually a less risky system that can help you to feel more confident. Some are even wondering if these types of financial accounts are even going to last for much longer and Bitcoin has managed to get a lot of investments from around the world, while other types of investing are falling by the wayside.

Setting up IRA with Bitcoin

Bitcoin Roth IRA

So, if you are looking toward self-directed retirement plans and think you want to create an IRA, how are you going to do it with Bitcoin? Well, if you already have an IRA you can actually roll it right over to Bitcoin right now.

If you’re looking to become a self-directed IRA custodian for the first time, you can do it quickly and easily enough with one of many different IRA financial groups. In fact, a lot of investment groups are starting to open up to the idea of Bitcoin as an investment strategy.

Considered a type of non-traditional investment, Bitcoin requires a secure application, which can be completed in person with your IRA custodian or even online.

You’ll want to take a close look at the custodians that are out there to make sure you’re getting someone you can trust. Then, you start transferring money into the account or rolling it over from any self-directed IRAs that you already have.

After you’ve done this initial transaction you’ll be able to buy Bitcoins however you want and you can continue to add them to your account, up to $5,500 a year and watch your retirement funds grow.

What You Need to Consider

One of the biggest things that you’ll want to consider when it comes to this type of investment option is the security of it all. You want to make sure that you have a secure investment, after all, and that it’s not going to all disappear on you.

Sure, any investment has some risk involved, but the risk of theft is one that you would like to keep as low as possible, right? With an online system, it can be a little more difficult to feel confident, but Bitcoin systems are working on constantly improving their processes to make it less likely that you’ll be a victim of a hacker.

Another important consideration is whether this type of system will continue to be a long-term strategy. Bitcoin is still relatively new, even if it has been around for a decade (how long have precious metals and the dollar been around for, after all?).

You want to consider whether or not the system is really going to stick it out for the long haul or if something could change somewhere down the road, without any warning. Only you can decide if you feel comfortable with this type of investment for an extended period.

Finally, you want to look at the overall balance of your investments. Putting all of your eggs in one basket is generally not a great option, so look at how well (or not well) you’ve balanced things out already.

Once you know that you’ll be better prepared for your future investments and how much you want to put into Bitcoin. You probably don’t want to stock away too much in any one area, right? Bitcoin may turn out to be a great investment, but even if it does, it’s a good idea to hedge your bets from different places.

When it comes down to increasing your retirement funds, a self-directed Roth IRA is an important investment tool for your future. You need that retirement to be there for you when it comes down to the line.

With Bitcoin cryptocurrencies, you can set up something entirely unique and still extremely profitable for you. The key is making sure you research every step of the way and make sure that you’re not putting everything in one place.

Bitcoin may seem like the wave of the future, but you never know what could come up next. Your IRA is one place that you definitely don’t want to be risking too much.

About the author 


Tom is a former accountant turned entrepreneur. He is not a financial adviser but does tend to give a lot of financial advice to his friends and colleagues. He currently runs a small online venture and blogs about his research and experiences.

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