If you want to open a self directed individual retirement account, then you may want to consider a digital Roth IRA. Being a Roth IRA me that you’ve paid taxes over your contributions but not over any games that your account may earn. It has to be self-directed if you wish to invest in cryptocurrencies, however, as this is classed as an alternative asset under IRS rulings. So how do you find the best bitcoin Roth IRA?
How to Find the Best Bitcoin Roth IRA
Is the concept of placing bitcoin or other forms of cryptocurrency in an IRA is still relatively new. As a result, there are still few custodians who accept them. However, this is changing because the public is becoming increasingly interested in taking control of their own investment accounts and in adding cryptocurrencies to doze. The result is that you now have quite a few choices to make but not all of them are actually good ones period so what should you be looking for?
First of all, you should only use a bitcoin IRA company that has been properly reviewed by both regular users like yourself and by the experts. You will find that there are very good companies out there that have only recently opened up and equally so that have been around for a long time. Length of service is perhaps not the most important factor as the concept of digital IRA is it still so new. In fact, it was only in 2014 that it became officially legal to use them.
There are other things that you may want to look for that can denote firstly the experience the company has with cryptocurrencies and secondly with dealing with investors like yourself. Some of those things include:
- The commitment of the company makes towards educating you on what the different asset options are.
- The history of the company has in relation to cryptocurrencies as a whole. Some have even started as mining companies, which means they truly have an understanding of what cryptocurrencies are.
- The types of investment accounts that they offer. The Roth IRA is one of those, but so is the traditional IRA and the 401 k to name but a few.
- How much you have to pay in order to hold the account.
- Whether or not professional input is available should you want it.
- The minimum required amount for your initial investment.
- Which cryptocurrencies you can invest in. Bitcoin is perhaps the best known one, but there is also Ripple, Ethereum and Ethereum Classic, Litecoin, and more.
- Whether they also offer other investment options such as precious metals.
- How they will keep your bitcoin investments safe.
- Whether or not you are required to set up as an LLC in order to be able to manage the account.
With a little bit of time to research your options, you should be able to find the right account for your personal needs. Good luck with embarking on what could be the most lucrative investment of your life.