Want to invest in crypto but are yet to decide how? In recent years, the cryptocurrency industry has been setting and breaking records, surprising critics and proponents. And, for crypto investors, making money has never been easier. That said, investing in Bitcoin, Ethereum, Litecoin, or any other coin or token in the market can be scary, especially if you consider the potential risks and costs you may incur. If you want to enjoy the benefits of crypto investing while keeping your taxes low and securing your assets, you should look into a crypto IRA account.
Crypto IRAs have come up as a result of cryptocurrencies surging in popularity. Different platforms and companies now offer bitcoin IRAs to people looking to roll over their digital assets into retirement savings.
A crypto IRA is a digital wallet that allows you to add cryptocurrencies to your retirement portfolio, diversify it, and enjoy significant tax advantages.
So, how do you start investing with a crypto IRA account through Viva Capital?
1. Pick a Crypto IRA Custodian or Company
Cryptocurrency IRAs need a custodian to set up and run. A custodian hosts your account, similar to a bank in the case of a checking account. However, since a crypto IRA is self-directed, the custodian does not offer investment advice. For that, you would need a crypto IRA management company. So, you get to have complete control over your investment.
As you compare the different options in the market, make sure you consider things like fees, customer support, account limits, trading options, security, and credibility.
2. Set Up Your Crypto IRA Account & Digital Wallet
Once you have made up your mind about your crypto IRA provider, the next step is setting up an account and wallet. A digital wallet keeps your crypto safe from cyberattacks. Different providers have their unique processes. However, the requirements are more or less the same.
You will, of course, need to provide some personal and financial details like your name, contacts, social security, etc. Since you need a way to fund your account and buy crypto, you can link your account with your card. With most crypto IRA accounts, you will need to deposit a minimum investment, or more, to activate and start using.
3. Start Trading
Once your crypto IRA is ready and funded, it can take one to five days to get approved for trading. After that, you can buy your first crypto in your IRA. Crypto IRAs started with Bitcoin, but most accept other cryptocurrencies like Ethereum, Litecoin, and Bitcoin Cash. So, you can pick whatever you think has the best prospects depending on your goal.
So, what can you do once you have coins in your wallet? You can decide to trade. You buy when the markets are low and sell when they are high, thereby making a profit.
Alternatively, you can stake your holdings, saving or ‘locking up’ your crypto to earn interest, also known as an annual percentage yield.
Ready to Grow Your Wealth with Crypto? Set Up Your Cryptocurrency IRA Today
While early crypto investors have reaped big from their investments, the industry is still young, and it is not too late to get in. However, you should buy your crypto in an IRA to make your investment worthwhile. And, as you can see, the process is simple.
All the same, it’s good investment practice not to put all your eggs in one basket, especially considering crypto is still considered an alternative investment. For this reason, you need to try and work with a good crypto IRA custodian who can give you solid financial advice regarding your investment.