As the market crashes and Bitcoin remains around $30,000, a bear market is evident. During this time, an accumulation phase occurs where individuals cash in on the bounce and ride the bull run. A video by Kris discusses investing in crypto Roth IRAs, which are still in their infancy but are growing in popularity. A major benefit of a Roth IRA is that taxes are paid immediately, saving on future increases in taxes. However, there are cons, such as account and monthly fees. iTrustCapital, Bitcoin IRA, and Coin IRA are three options for investing in crypto Roth IRAs.
Crypto Roth IRAs: Exploring Investment Options for the Bear Market
As the current market crash continues, with Bitcoin hovering around $30,000, it’s evident that we’re in a bear market. With every bear market, there comes an accumulation phase where one cashes in on the bounce and rides the bull run. If we zoom out and look at times when the price crashed like this, we can see a pattern of at least an 80% dip, making a 16 to 18k Bitcoin an achievable reality. With that in mind, investing in Crypto Roth IRAs could be a great option for those looking to enter the crypto market.
Individuals who are not familiar with Roth IRAs may benefit from knowing that a Roth IRA allows one to pay taxes immediately, which, in theory, is better because, as time progresses, taxes usually increase. Thus, Crypto Roth IRAs present themselves as a great way to avoid higher taxes in the future. Vanguard, one of the largest investment funds globally, reported that Roth IRAs had $1.5 trillion in assets locked up, significantly less than the average 401k account, which had more than $7 million in assets locked up.
Crypto Roth IRAs are relatively new, and therefore, their total assets market capitalization is considerably less than traditional Roth IRAs. However, individual Crypto IRA platforms like Bitcoin IRAs have reported having $100 million invested in interest earning programs. Similarly, companies such as iTrustCapital have over $1 billion evaluations, which makes them promising.
But why invest in a Crypto Roth IRA, and not buy the crypto itself? The IRS treats cryptos as property, similar to stocks, which means that there are no taxes on the gains. Additionally, using those retirement funds to invest in cryptocurrencies can defer some of the capital gains that one has made. But, there are downsides to Crypto Roth IRAs as well. Cryptocurrencies are relatively new assets with an unproven track record, and their prices are volatile, making it a high-risk investment. Furthermore, Crypto Roths come with account, monthly, and transparency fees.
Avado is a platform that offers individuals a way to avoid some of these fees by running their validator node. The platform allows over ten different nodes to be run, including Ethereum, Avalanche, Monero, and Bitcoin. The main two cryptocurrencies for user feedback are Near Protocol and Gnosis.
Now let’s dive into three Crypto Roth IRAs, starting with iTrustCapital, which requires a minimum of $1,000 to open an account and a $30 trade minimum. It has been available since 2018 and charges 1% per transaction, with no monthly fee. Additionally, new users get $100 in free Bitcoin when they fund their account. Bitcoin IRA, also established in 2016, is the first and largest cryptocurrency IRA company. It supports over 60 different cryptocurrencies, with a custodian, security, and one-time service fee. Lastly, coin IRA, which has the highest minimum buying cost at $20,000, offers a way to bypass this by transferring $3,500 from an already existing traditional IRA account.
In conclusion, Crypto Roth IRAs present themselves as a great way to invest in the crypto market while avoiding high taxes in the future. However, investing in cryptocurrencies is a high-risk investment option, and individuals should proceed with caution. Nonetheless, these Crypto Roth IRAs rank among the better options, given their fees, services, and offerings.