How to Expand Your Portfolio with Cryptocurrency

One of the great ways to plan for retirement is to invest in an IRA. Usually, a traditional IRA is designed so you can invest in several securities – stocks that usually make up trending securities and growth equities.

Why a Roth IRA is a Popular Investment

Investing in a traditional IRA over the long term then can result in substantial financial gains. This is especially true if you invest in a Roth IRA. While you have to pay taxes on your investments upfront, you don’t have any tax to pay once you start withdrawing the money. This makes a Roth IRA a highly popular choice among younger investors today.

Because people generally make more money during their working years, they can withdraw their money without worrying about taxes after they retire. A Roth IRA allows you to cap your investment at $6,000 annually. You can contribute up to $7,000 per year if you’re 50 or over. The extra $1,000 is considered a catch-up amount so investors have the opportunity to save more for retirement.

However, unlike a traditional IRA, withdrawals from a Roth IRA can be taken at any time. If you contribute to a traditional IRA, not only are you taxed for your allocations, you also have to start withdrawing the money when you’re 72 years old.

Investing in a Cryptocurrency IRA

That is why investors are choosing Roth IRAs for crypto investing. Crypto Roth IRAs work the same as a regular Roth IRA except they are called self-directed IRAs or SDIRAs.

A cryptocurrency IRA allows you to diversify your portfolio, giving you a chance to make sizable gains by trading crypto.

Moreover, you can contribute to both a traditional Roth IRA, and a crypto SDIRA account. When you enroll in an SDIRA, you will work with a custodian who will oversee the opening of your account and trading activities. However, you still have control over the trades. You can begin the process online by enrolling in an account with a company such as Viva Capital.

Balancing Out Your Investments

An SDIRA represents an alternative IRA that may feature crypto, real estate, gold, or art. Therefore, this type of investment vehicle offers a great way to diversify your investments and holdings.

If you invest in stock and crypto, you can balance out your investments, thereby reducing risk and expanding your opportunities to increase your wealth and assets.

How to Open a Crypto SDIRA

To open a crypto IRA, you only need to fill out an application and invest your money or rollover funds from a 401(k), a regular IRA, or a traditional Roth IRA account. The process goes fairly fast, especially if the funds are transferred electronically.  You can either rollover part of the funds or the entire amount.

Adding crypto to an IRA is an intelligent money move ,as you don’t have to pay capital gains tax on the money traded in the account. Therefore, a crypto IRA offers tax advantages for anyone who wants to increase their crypto holdings and do so without paying tax.

A Financial Plan for the Future You Can’t Ignore

If you have not done so already, learn more about the benefits of opening a Roth crypto IRA. The sooner you do so, the sooner you can start building wealth – the type of wealth that will lead to a comfortable retirement.