Until not so long ago, gold and precious metals IRAs dominated the individual retirement account scene. But with people now choosing to roll over their investments into IRAs and cryptocurrency blowing up tremendously over the past few years, a lot of people are now considering crypto IRAs.
The right management partner can save you time, money, and a whole lot of frustrations. If you want to pick the best cryptocurrency IRA management firm, do due diligence by checking for all the characteristics mentioned below. And, if you need to, contact the various firms you are interested in to ask questions.
What Is A Crypto IRA
A crypto IRA is just like any other IRA only that you can buy and store cryptocurrencies such as Bitcoin and Ethereum. Your investments are basically stored in a digital wallet but there are different wallet sizes depending on how much crypto you have to store.
Opening a crypto IRA is hands down the best way to tap into the potential of the booming cryptocurrency industry. On top of diversifying your retirement assets, it also qualifies you for capital gains tax benefits. Since the IRS considers crypto as property, your earnings are subject to capital gains tax in both the short and long term. That said, you need to find yourself a good crypto IRA custodian.
But the growing number of crypto IRA management firms can have you wondering how to make the best pick. If you are interested in investing in crypto but don’t know what to look for, do not worry; this article is about to reveal the 5 most important qualities to look for when comparing the different options.
If you keep all these in mind, you will definitely narrow down your search to the best crypto IRA management company for you.
1. Unrestricted Access to Your Investment
The first thing you should check for is how much access you have over your account. While the management company’s job is to facilitate investment decisions while keeping your assets safe, you should retain unrestricted access to your crypto and account as the owner. That means you can monitor, withdraw, or transfer your assets if you so wish.
2. Unlimited Investment Capital
A good crypto IRA management partner should have flexible terms on the investment capital you can put into your account. You should be able to start with whatever you have, so check for the minimum initial deposit. Most importantly, there should not be a ceiling on how much you can invest. Remember, crypto is ever-growing, so your goals as to how much you want to invest may change over time.
3. Converting Existing Retirement Account to Roth IRA
Traditional IRAs can rack up a lot of taxes as your wealth builds up because you move to higher tax brackets. So, if you see yourself having a sizable retirement investment in the near future, it makes sense to convert to a Roth IRA. Plus, you can make tax-free withdrawals off your Roth IRA once you hit 59 ½. So, you want to make sure this is an option you can explore when the time comes by picking your IRA management company.
4. Access to Legal Attorneys
A reputable crypto IRA management company should be able to connect you with financial attorneys in case you need one. As a person with no experience in how cryptocurrency IRAs work, there are many things that may sound complex to you. An attorney can help you review all the terms of the agreement with the company so that you can make an informed decision.
5. 100% Insured Staking
As the crypto space advances, malicious attacks from cybercriminals have become more sophisticated. So, there is still some risk of losing your staked crypto assets to scammers and rug pulls. Before you pick a company to manage your crypto IRA, make sure it offers insurance for your assets. So, if anything happens, you do not lose your hard-earned investment.
Want to Pick the Best Crypto IRA? Make Sure You Tick All the Boxes
Investing is a long journey that often lasts until retirement or your entire life. But like any other investments, crypto does come with its fair share of risks. While some of the issues you might come across include custodians charging high fees or a restricted use case as compared to other assets, you should be more concerned about volatility.
Since it is rather decentralized, crypto is rather volatile and can be very unpredictable. The best thing to do is to include your crypto IRA as part of a bigger investment strategy. This way, you can better handle the instability of crypto. That’s why finding the best crypto IRA company for your needs is critical.
