Why You Should Choose to Invest in Cryptocurrencies
When investing, it’s important to remember that no matter what vehicle you choose, each has its own set of advantages and disadvantages. Whatever your investment goals, understanding these and applying them to create a balanced portfolio that works toward your underlying strategy is key to success.
One notable advantage of the cryptocurrency asset class isn’t just its relative novelty – it’s also the fact that they bring together a host of benefits that investors did not previously have access to. Now, Americans can open an IRS-approved self-directed Digital IRA to invest in their retirement.
The biggest benefit of opening a Digital IRA is that you can diversify your investments into non-conventional asset classes that go beyond the typical stocks and mutual funds found in traditional IRAs such as the 401(k).
Enjoy Tax-Deferred Gains
Since IRS Notice 2014-21, digital currencies have been recognized as a private asset – property – for tax purposes. For investors, this means they can be held in a Digital IRA and only pay tax on gains when you withdraw money or take a distribution. This allows you to grow your wealth without the tax man taking his share at every step.
Another benefit of keeping cryptocurrencies in a Digital IRA is that you can reinvest in other asset classes within your IRA. So long as you don’t take a distribution, you can rebalance your portfolio while keeping it tax-deferred.
For example, if you purchased Bitcoin inside your IRA and sold it for a profit, you could either take out the gains – and pay tax – or you could reinvest into another approved asset class such as precious metals while continuing to enjoy tax-deferred gains.
Protect Yourself Against Inflation with a Cryptocurrency Hedge
Inflation is always a threat to investors’ gains – and unlike the money in your pocket, cryptocurrencies provide an effective vehicle when it comes to protecting your wealth from creeping inflation.
Unlike regular fiat money, nobody truly controls cryptocurrencies – least of all governments and central banks. Instead, cryptocurrencies are regulated by its global network of users. Issues that fiat currencies commonly face, such as (inflation) and debasement are simply unfeasible.
In addition to the autonomy that decentralization brings, digital currencies are also ruled by adaptive scaling. In brief, the more a specific blockchain is mined, the higher the difficulty gets. In addition to this scaling of difficulties, many cryptocurrencies have a hard cap – a finite number of tokens or coin that will never be exceeded.
The Upside to Investing with Cryptocurrency
In the past few decades, it has been proven time and time again that the best investment – so far as returns are concerned – are intimately linked with disruptive technology that changes entire industries.
The last example was the growth of the internet at the turn of the century, and prior to that the rise of home computers. Cryptocurrencies are increasingly being recognized as the latest iteration of this belief by smart investors.
More than just the digital currency aspect, it is the blockchain that market speculators and industry experts predict is the real revolution. Cryptocurrencies are almost certain to transform our financial and monetary system – and for that reason, many leading analysts on Wall Street and elsewhere believe that this asset class is undervalued by a long margin.
Streamlined Asset Diversification
Financial experts commonly agree that holding a variety of assets is a key strategy to keep your risk low and your profits high. Failure to do so can lead to losses, missed opportunities, and worse.
Traditional IRAs such as the 401(k) offer a limited number of assets, which means that investors aren’t able to expose themselves to a truly diverse portfolio. With a Digital IRA, this has changed: not only are traditional asset classes available, but also cryptocurrency assets alongside other non-traditional assets.
Secure and Private Networks
Thanks to the encryption protocols that lie at the heart of the blockchains used in cryptocurrency, anonymity for users is a given. Although people may be able to see your wallet, nobody can trace your identity back to that wallet unless you share that identity or give your consent to those asking.
This high level of security also applies to storage (in your cryptocurrency wallet) and transfers (using your private keys) and multi-level encryption. Put together, it’s the digital equivalent of a safe.
Speedy Transactions with No Limitations
Currently, the unregulated nature of the cryptocurrency markets means that neither governments, banks, or even regulators can interfere with the global flow of digital currency. A cryptocurrency transaction from California to Australia can be done in second for just a few cents, regardless of whether you’re sending $10 of value or $10,000.
There is simply no other asset class that offers all these incredible benefits in one simple package!
For smart investors, the time has come to introduce cryptocurrency to their portfolio. Why? They have recently been validated as a new asset class, but they are still some way off their full financial potential. In other words, early adopters can still get on board today and take the full profits of being a part of the current technological revolution.
If you’re looking for ways to secure a healthy retirement savings fund with potential for incredible growth by leveraging cryptocurrencies, it’s time to call Bitcoin Retirement Solutions at 800-214-2277. Our specialists are on standby to answer your questions and help you make the right decision for your future.