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Yes, You Can Use An IRA For Bitcoin Investing

Promoted: There is an easy way to direct traditional investment toward bitcoin that many don’t know about.

The post Yes, You Can Use An IRA For Bitcoin Investing appeared first on Bitcoin Magazine.

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This is a promoted article.

For many, the value proposition of Bitcoin is easy to understand, especially in relation to more traditional investments. Bitcoin has a programmatically fixed supply, it exists outside of any central entity’s control and can be considered truly borderless. 

But the “how” of bitcoin investment can be a little more daunting. How to take part in the bitcoin ecosystem, how to best invest your dollars into BTC, how to construct this investment so that it is most beneficial and tax advantaged in the long term — in short, how to get started is often the hardest part.

The good news is that there is an easy way to direct traditional investment toward bitcoin that many don’t know about. You can join the bitcoin revolution through a very familiar investment vehicle: your IRA. 

A Traditional Investment Vehicle, Made Revolutionary

Here’s how the typical process goes with IRAs: either you or your financial advisor creates an IRA in your name, and then uses it to invest in traditional investments — such as bonds or stocks. And there’s almost no chance that those IRA dollars would ever touch cryptocurrency, meaning that BTC and other alternative assets could never benefit from the tax advantages of an IRA. 

Alternative IRA custodians grant you full control to invest in alternative investments beyond the traditional stock market — you make your own decision about where and how to invest your IRA dollars. 

A few years ago, the IRS classified bitcoin (and other cryptocurrencies) as property, allowing it to be included in IRAs, along with other investments (called “alternative investments”) like real estate, venture capital, private equity and shares of art.

These alternative IRA accounts, often referred to as self-directed IRAs, can be structured in the forms that many investors are used to, most commonly: traditional IRAs, Roth IRAs, and Simplified Employee Pension (SEP) IRAs. Each type of IRA offers unique advantages, and determining which one is right for you will depend on your age, income, investor profile and overall goals.

Alternative IRA accounts have the same contribution limits as the other IRAs. The contribution limit through 2020 is $6,000 for those under 50 years old, or $7,000 for those 50 years old and older. 

Why You Should Invest in Bitcoin With an Alto CryptoIRA

Because of regulatory changes and advances in technology, alternative IRAs are now more powerful than ever — allowing everyday investors to place funds in alternative investments and enjoy the tax-friendly advantages of an IRA. 

To simplify investing in bitcoin with your IRA, Alto has created a special IRA just for crypto enthusiasts called, fittingly enough, the Alto CryptoIRA. Here are the benefits to opening an Alto CryptoIRA:

  1. Freedom to choose with your retirement money. Most brokerages and custodians don’t allow investments in alternative assets with IRAs, because these assets are typically illiquid. That’s not the case with Alto. You can use IRA dollars to buy bitcoin with a CryptoIRA from Alto.
  2. Make tax-free bitcoin trades. Active traders, pay attention: This is a huge plus to anyone who is watching the bitcoin market closely (and who isn’t?). An Alto CryptoIRA also gives you the ability to make tax-free trades. For example, you can sell bitcoin at $10,000 without having to worry about capital gains, and then buy again when bitcoin is at $8,000.
  3. Gains grow tax deferred. With an Alto CryptoIRA, BTC gains come to you tax free. You won’t have to pay tax if the value of BTC increases over time. If you got in years ago when the price was $1,000 and then sold when it was $10,000, you would not have to pay taxes on the gains. In fact, you’ll never pay taxes on any of those gains or whatever you invest them in next until you start to take taxable distributions later in life.
  4. Ease and cost. Though it hasn’t always been this way, Alto has built a unique and easy platform to simplify investing into alternatives. They have even created a dedicated IRA just for cryptocurrency investing, no LLC required, called the Alto CryptoIRA. In addition to investing in bitcoin with an IRA, you can create additional IRAs for investing in other opportunities, including those offered by their many partners

One thing to keep in mind: Your total IRA contribution amount spans across all of your IRA accounts. You can have multiple IRAs, but all of your contributions can only equal $6,000 for the year. You are also limited from contributing to a Roth IRA, depending on your annual income. That said, you can rollover any amount of cash from an existing IRA to Alto without being capped and without penalty.

Conclusion: The Growth of SDIRAs and Alternative Investments

Investing in alternative assets with self-directed IRAs is only gaining in popularity with leading investors. Research made exclusive to AltoIRA showed that 27 percent of those with a household income of $1 million or more are interested in alternative assets, including cryptocurrencies like bitcoin. Other industry analysts expect the market for alternative investments to hit $14 trillion by 2023. 

And it’s simple to join this growing trend at an opportune time, and begin investing in this market with an Alto CryptoIRA

The post Yes, You Can Use An IRA For Bitcoin Investing appeared first on Bitcoin Magazine.

Source: https://bitcoinmagazine.com/articles/yes-you-can-use-an-ira-for-bitcoin-investing?utm_source=rss&utm_medium=rss&utm_campaign=yes-you-can-use-an-ira-for-bitcoin-investing

Blockchain

Bitcoin dominance is an irrelevant metric unless…

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The volatile cryptocurrency market has given way to multiple metrics for the market observers to analyze and predict what’s coming next. One such metric has been Bitcoin dominance, but as per Su Zhu, it should not be relevant to you unless you are a billionaire.

How so?

The CEO of Three Arrows Capital opined this after noticing the trend of the newcomers avoiding Bitcoin and Ethereum and opting for risky crypto tokens. When the largest digital asset was stuck in a wider correction period, altcoins like Dogecoin [DOGE] grabbed much attention. This was possible due to the hype created by Tesla CEO or, self-proclaimed “doge-father,” Elon Musk and the Doge community.

However, understanding the newcomers’ enthusiasm Zhu opined that if he were to bet on projects now, he would choose Solana and Avalanche.

Despite the popularity of altcoins, the exec remained bullish on Bitcoin and Ethereum as he expected, the former to flip gold’s market cap, and the latter to eventually hit a value above $25,000. Bold predictions, but nothing we haven’t heard before.

However, newcomers were more bothered about the dominance metric but as data suggested, Bitcoin dominance has recently been falling. The dominance was hit earlier but recovered to form a peak at 49.25% on 30th July. But given the correction phase that followed, the dominance of BTC fell and was last noted to be at 40% on 10th September.

It is interesting to note that despite plenty of adoption related news such as that of El Salvador, coming in over the past few weeks, it looks like the dominance has remained unaffected by it.

Source: CoinMarketCap

Twitter user and crypto enthusiast, @HsakaTrades also noted that Bitcoin dominance was not a relevant metric for anyone who has a “sub mid 9fig portfolio]. Agreeing with Hasaka, Zhu added,

“To clarify, if you’re holding for 5+ yrs, you shouldn’t be thinking about btc dominance in the first place. And obv btc and eth have a strong place in that portfolio.

If you’re allocating actively atm, and think debating btc v eth v alts is a good framework, you’re ngmi.”

While this advice could stand true for experiences, long-term trader interested in making money, but not the ones looking out to invest in tech. This was especially highlighted in the comments wherein the crypto users were upset about the CEO’s Solana [SOL] recommendation that recently witnessed an outage.

Nevertheless, the trading advice and strategies differd from trader to trader and Zhu’s opinion to not focus on the BTC dominance, prebably stemmed from a hodlers perspective. While interesting projects were now erupting in the crypto space, it looks like Bitcoin’s dominance, not only in terms of price, but as a crypto project could be challenge.

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Source: https://ambcrypto.com/bitcoin-dominance-irrelevant-for-anyone-not-10figs

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Blockchain

Millions of Dollars Raised Through Solana’s DeFi Projects

Millions of Dollars Raised Through Solana's DeFi Projects

PAI, an algorithmic stablecoin, backs Parrot Protocol. Grape Protocol was the primary source of the downtime. Solana has been up

The post has appeared first on thenewscrypto.com

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  • PAI, an algorithmic stablecoin, backs Parrot Protocol.
  • Grape Protocol was the primary source of the downtime.

Solana has been up nearly 3200% since August. Investors’ interest in Ethereum rival systems featuring DeFi, NFT, and smart contract services has risen dramatically.

The software applications that simulate legal contracts are smart contracts. Once housed on a blockchain network, the software application will run automatically without human intervention.

This month, Solana’s DeFi initiatives raised millions of dollars. This is another proof of Solana’s potential to compete with Ethereum. Currently, Ethereum has the most DeFi and NFT projects.

Bots raced to invest in a token sale for Grape Protocol over flooded the blockchain, causing Solana to collapse for 17 hours on Tuesday. Let us take a look at the few IDO that helped raise millions.

Grape Protocol

Grape Protocol, the primary source of the downtime, managed to raise just $600,000 on Raydium’s “Acceleraytor.”

Tokenized communities may use Grape Network to connect to platforms like Discord, Telegram, and soon twitter to collaborate over Solana and reward members with crypto.

Parrot Protocol

Parrot Protocol is based on Solana. Investors in the Initial DEX offering included Sino Global Capital, Alameda Research, and QTUM VC. Moreover, to put it simply, Parrot is a non-custodial lending platform and decentralized exchange.

PAI, an algorithmic stablecoin, backs Parrot. Furthermore, Parrot offered a governance token called PRT in its IDO. Thus, allowing investors to vote on the protocol’s operation and farm yields on Solana without affecting other Layer 1 blockchains.

Solana’s failure impacted Parrot’s IDO, but it was resolved by Sept. 16. Moreover, the team said it would start working on PRT staking, NFTs, and adjustable interest rates in “Letter from the Parrot.”

Several Solana initiatives will be launched in the next day’s/weeks. Examples include Solanium, Boca Chica, and Solstarter. On Solanium, whitelisted users may buy MatrixETF.

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Source: https://thenewscrypto.com/millions-of-dollars-raised-through-solanas-defi-projects/

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Cosmos (ATOM) Lead Market-Wide Rally

Cosmos (ATOM) Lead Market-Wide Rally

Cosmos’ creators call it an “internet of blockchains.” ATOM also launched a bridge to Ethereum at the end of August.

The post has appeared first on thenewscrypto.com

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  • Cosmos’ creators call it an “internet of blockchains.”
  • ATOM also launched a bridge to Ethereum at the end of August.

Cosmos (ATOM) blew up 10.74 percent overnight to establish a new price of $39.58, according to CoinMarketCap. It surpassed $40 yesterday, reaching $40.76. Despite today’s minor decline, Cosmos’ price was still ten dollars more than seven days ago, and twenty dollars higher than this time last month.

Its creators call it an “internet of blockchains.” It’s an interoperability network that allows various blockchains to connect, exchange data, and interact with one another.

In short, Cosmos claims to address some of the “hardest problems” in the blockchain sector. It seeks to provide an alternative to “slow, costly, unscalable, and ecologically harmful” proof-of-work protocols like Bitcoin by connecting blockchains. On August 18, Cosmos rose 25% from $15 to $20 after the introduction of Emeris, a cross-chain DeFi interface.

It also launched a bridge to Ethereum at the end of August. The inter-blockchain communication protocol (IBC) allowed trade across the Cosmos and Ethereum networks for the first time, along with the integration of Sifchain.

Cosmos Might Soon Over Take FTX Token

Cosmos is “Blockchain 3.0” — thus, as previously said, ease of usage is a significant objective. To this aim, the Cosmos SDK emphasizes modularity. This enables a network to be created quickly using existing code. Long term, it is anticipated that sophisticated applications would be simple to build.

Cosmos now has the twenty-first largest market value, but at this pace, it would only take $0.8 billion to flip FTX Token and make a bold entry into the top twenty.

Some in the crypto sector, much worried about the amount of fragmentation in blockchain networks. There are hundreds, yet few can converse. Cosmos wants to change this by making it feasible.

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Source: https://thenewscrypto.com/cosmos-atom-lead-market-wide-rally/

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