Are alternative assets like cryptocurrency more profitable for your IRA? The answer is YES

by Radhe Gupta

Individual retirement accounts or IRAs are a worthy investment for everyone to make as they make it possible to make long-term future investments at your pleasure and pace. These self-directed individual retirement accounts allow the owner to invest in alternative assets easily. These may include cryptocurrencies and precious metals. 

Understanding how bitcoin IRA works

Bitcoin IRA from Viva Capital is very similar to a normal IRA but the investment is shifted from mutual fund shares into cryptocurrency. Self-directed IRAs can be done traditionally or with a self-directed IRA. You can transfer funds from your normal IRA or 401K into a self-directed IRA. Self-directed IRAS with bitcoin IRAs will need a little more DIY-ing when doing it alone. You can however choose to work with a firm that has experience with digital currency and investment with bitcoin IRAS. 

For your self-directed bitcoin IRA, you will need

  • A custodian: this will come in place of banks and other financial institutions for normal IRAs. They are responsible for your IRA’s safekeeping and there is adherence to the set regulations for operation by the IRS and the government. 
  • An exchange platform: this is similar to the stock market and it helps you to manage your cryptocurrency trades through active trade. Bitcoin purchases and sales can be made here.
  • Secure storage: you will need the means to protect your cryptocurrency. Bitcoin IRA providers usually include storage methods that will make sure your digital coins are safe from theft on purchase. 

Different self-directed IRAs will provide different service packages on their own or partner with other providers. 

Why you should invest in bitcoin IRA

These bitcoin IRAs are a great way to diversify your income from conventional stocks and bonds balancing your IRA well. If one does not work out well, there is still a fallback plan. Some may argue that bitcoin IRAs are too volatile an investment choice but that is to be expected as this digital currency is still being incepted into the main market. However, the volatile nature of Bitcoin IRA plays into the capacity and potential for huge gains. 

Given time and specific planning, you can catch the success window for the cryptocurrency that has shown to earn over 400% returns.  There are also some tax advantages to having a bitcoin IRA. Legislation requires that taxes should be filed for every cryptocurrency profit and that is a lot of books to keep up with.  With the Bitcoin IRA accounts, there are no taxes while the securities are in your account. 

Risks and disadvantages of Bitcoin IRAs

As it is with any investment, Bitcoin IRAs are not without their risks and cons.  For starters, you will have a fee to set up your account and some other related fees. As you choose the institution to set up with, be sure you are fully aware of the costs associated with that.  Some Bitcoin IRA companies may also limit you to exchanging on affiliated platforms while others will give you the freedom to exchange with your desired crypto exchange.  


The next step after establishing a need for a Bitcoin IRA is to decide where to open the account and have the documents needed. Be sure to align your Bitcoin IRA investment with your long-term investment goals: With the right provider, you can be able to set yourself up for retirement well.

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