![]() Genesis is a crypto lending platform that filed for bankruptcy in January after getting caught up in the contagion that followed the spectacular collapse of crypto exchange FTX. Thus, investors should exercise more caution regarding My Digital Money compared to its rivals, especially as so little information is available on the company.Īdditionally, My Digital Money is partnered with Genesis Capital. ![]() The U.S.-based platform is younger than many of its counterparts on this list, having launched in April 2021. My Digital Money is another IRA provider that offers customers the ability to trade in cash. Let’s take a look at some of the best options on the market. Also, the fees are typically much higher than those of other mediums through which you can buy bitcoin, such as exchanges.īitcoin IRAs may suit some investors but are less appropriate for others. Instead, your profit is dependent on capital appreciation. You also can’t generate investment income as you can with stock dividends, bond interest and real estate rents, Itkin adds. “In an IRA, you cannot offset losses with gains that could be achieved in a brokerage account for tax-loss harvesting purposes,” says Laurie Itkin, a financial advisor and wealth manager at Coastwise Capital Group. Tax treatment of IRAs may be a con for some investors. The long-term nature of retirement accounts may help you weather the volatility of bitcoin if you believe in its future.īut investing in bitcoin through an IRA also has drawbacks.Depending on the type of IRA, you can build wealth on a tax-deferred or tax-free basis. ![]() Using an IRA to invest in bitcoin has benefits: Still, some investors want the broader diversification that comes with investing in cryptocurrency, making bitcoin IRAs a consideration. One year later, bitcoin traded at $15,800, a brutal fall of 77%.Īn overzealous allocation of bitcoin could quickly change your retirement plans from a beach on a Caribbean island to an extra 10 years in the workforce. Bitcoin has only been around since 2009, and its price has vacillated wildly.įor evidence of those risks, look no further than the year following the all-time high of close to $69,000 in November 2021. So you should ensure you have a well-balanced portfolio. Recently, bitcoin IRAs have become available as the cryptocurrency has surged into the mainstream consciousness.īut there are many risks with cryptocurrency investing. You can invest in a wide range of assets with an IRA. Individual retirement accounts are tax-advantaged investment accounts designed to help people save for retirement.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |