This year, we’re seeing a big change in the crypto scene. High-profile assets like Bitcoin reached unprecedented highs and the launch of Bitcoin ETFs made global headlines within the mainstream financial market. With these significant events occurring, we’re noticing a notable shift in how cryptocurrencies are bought and sold, with a move away from traditional crypto exchanges.
As crypto has rapidly evolved from a niche interest to a significant financial asset over the past decade, there’s a growing trend in the integration of digital assets into investing retirement vehicles. Lately, people have been opening up Crypto IRAs, which combines the innovation of crypto with the power of retirement savings accounts.
What are crypto IRAs?
Crypto IRAs are unique investing accounts that enable investors to buy and sell crypto within individual retirement plans. The primary advantage of using crypto IRAs lies in their tax benefits, which can significantly enhance an investor’s financial portfolio.
The two most common types of Crypto IRAs are Traditional and Roth IRAs. A Traditional IRA allows investors to contribute funds with pre-tax dollars, growing tax-deferred, and effectively reducing current taxable income. Taxes on earnings are deferred until withdrawal, typically during retirement. With the other type, Roth IRAs are funded with after-tax dollars, offering the perk of tax-free withdrawals at retirement.
The features of crypto IRAs
Crypto IRAs introduce a significant shift from traditional investment accounts typically used for stock trading. When buying and selling through a Crypto IRA, you’re able to make those transactions 24/7, 365 days a year. Unlike the traditional stock market, which limits trading to specific hours, Crypto IRAs empower investors with the ability to immediately react to market fluctuations and seize after-hours opportunities.
Integrating crypto into a regulated retirement savings plan offers a secure method for digital asset investment. Crypto IRAs employ a regulated, third-party chartered trust to protect client assets, guaranteeing their separation from the company’s operational funds. This setup presents a marked benefit over transactions assets held directly on exchanges, where similar safeguards might not exist, and assets risk being mixed with the company’s own resources. Therefore, if securing your assets is a top priority, Crypto IRAs provide a more secure option than Crypto Exchanges.
iTrustCapital: A leading crypto IRA platform
Every day, more people are looking to include cryptocurrencies in their investing retirement plans, drawn by the tax advantages of an IRA and the potentially high returns of crypto. iTrustCapital, a leader in the Crypto IRA space, has been honored as the “Best Crypto IRA Investment Platform”* in the United States. iTrustCapital provides a software platform designed for investors to buy and sell crypto within a tax-advantaged IRA. Offering the most competitive fees, a wide selection of crypto assets, and a world-class client support team, iTrustCapital is at the forefront of merging traditional investment approaches with digital-era innovations.
*IMA Impact 2021 Awards
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