Connect with us
[crypto-donation-box]

Blockchain

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.

Republished by Plato

Published

on

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

Opimas estimates that over US$190 billion worth of Bitcoin is currently at risk due to subpar safekeeping

Republished by Plato

Published

on

May 2021. Safekeeping of cryptocurrencies presents a challenge for institutions holding cryptocurrencies on their clients’ behalf. Cryptocurrency transactions are irreversible and anyone with full access to a wallet’s private key controls the cryptocurrencies that reside within it. Frighteningly, a number of institutional participants and even some large cryptocurrency exchanges rely on subpar custody approaches, leading Opimas to estimate that over US$190 billion worth of Bitcoin is currently at risk due to subpar safekeeping.

Luckily, a number of companies have emerged to address this problem. A new research report from Opimas—Crypto Custody: No More Excuses, authored by analysts Suzannah Balluffi and Anne-Laure Foubert—looks at the landscape of cryptocurrency custody-enabling technology providers and institutional-grade cryptocurrency custodians as well as the size of the market for cryptocurrency custody and brokerage services.

Some key findings in the report include:

Many of even the largest holders of Bitcoin and other digital assets continue to rely on storage devices meant for individual investors. Although some of these self-custody devices and wallets are secure and reputable, the operational risk posed by this approach is significant for institutional investors. Furthermore, a chunk of institutionals’ cryptocurrency holdings sit in hot wallets on exchanges. In total, about 22% of institutional cryptocurrency holdings are safeguarded in these relatively risky manners (Figure 1).

Figure 1. CUSTODY METHODS UTILIZED BY INSTITUTIONAL INVESTORS 

 

Source: Opimas analysis.

There are no more excuses for lackadaisical safekeeping – institutions can now choose from several reputable cryptocurrency custody-enabling technology providers and institutional-grade cryptocurrency custodians. Yet no custody solution is equal – there is still no best practice when it comes to security and governance relating to private keys. For example, some providers may rely on time-tested Hardware Security Modules (HSMs), while others use a newer technology known as Multi-Party Computation (MPC) – see Figure 2.

Figure 2. A COMPARISON OF HSM AND MPC TECHNOLOGY PROVIDERS

Source: Ledger, Fireblocks, Opimas analysis.

Some cryptocurrency custodians have followed in the footsteps of traditional capital markets by adding prime brokerage services to their offerings, including trading and settlement, lending, margin finance, staking, reporting, and capital introduction services. Opimas estimates that the current annual revenues generated by the institutional crypto brokerage and custody market are roughly US$2 billion and will grow to nearly US$8 billion by 2026 – a sizeable portion of this coming from brokerage services (Figure 3).

FIGURE 3. THE MARKET FOR CRYPTO CUSTODY & PRIME BROKERAGE SERVICES IS GROWING 

Source:  Opimas analysis. 

  • Regulations surrounding institutions’ ability to store cryptocurrency have become clearer (and in some cases more favorable) in numerous jurisdictions. Notably, the Office of the Comptroller of the Currency (OCC) ruling in the US has allowed banks to store cryptocurrencies for their customers. This regulatory clarity has led a number of financial institutions around the world to provide trading and custody for digital assets. With the advances in brokerage and custody solutions, Opimas expects institutional cryptocurrency holdings to grow from 20% of the cryptocurrency market cap to over 50% by 2026 (Figure 4).

FIGURE 4. INstitutional cryptocurrency holdings over time 

Source:  Opimas analysis.

Source: PlatoData Intelligence

Continue Reading

Blockchain

Bitcoin (BTC) Price Prediction: BTC/USD Faces Rejection Thrice at the $60,000 Resistance Zone, Resumes Downward Correction

Republished by Plato

Published

on

Bitcoin (BTC) Price Prediction – May 9, 2021
Bitcoin bulls have broken above the $58,000 resistance but the bullish momentum could not be sustained. Today, BTC/USD traded as price reached the high of $59,450. The king coin is likely to retrace to $57,000 low if the bulls fail to break the $60,000 psychological price level.

Resistance Levels: $65,000, $70,000, $75,000
Support Levels: $50,000, $45,000, $40,000

BTC/USD – Daily Chart

Bitcoin price was rejected thrice at the $60,000 resistance level. Buyers made frantic efforts to sustain the bullish momentum above the recent high but were repelled by overwhelming selling pressure. Consequently, Bitcoin has resumed a downward move as a result of a strong rejection at the resistance of $59,200. The current retracement will extend to the low of $57,000. Nevertheless, if price breaks below the $57,000 support, the market will continue the downward move. That is, the selling pressure will extend to the low of $53,000. On the upside, if price retraces and finds support above $58,000, the upside momentum will resume.

Bank of England Governor Warns on Crypto Investment
Andrew Bailey is the governor of the Bank of England who has warned crypto investors of the inherent dangers of cryptocurrency investment. The governor argued that cryptocurrencies lacked intrinsic value. According to him, “I would only emphasize what I’ve said quite a few times in recent years, [and] I’m afraid they have no intrinsic value. I’m sorry; I’m going to say this very bluntly again: Buy them only if you’re prepared to lose all your money.” Bailey’s comments are coming at a time when crypto markets are characterized by a huge spike in crypto prices. Major altcoins such as Polkadot, Chainlink, and XRP have also seen vertical price actions.

BTC/USD – 4 Hour Chart

Bitcoin risks another downward correction as the king coin faces stiff rejection at the $59,450 resistance. The Fibonacci tool has already indicated a marginal upward move of Bitcoin and a possible reversal. On May 1 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Bitcoin will rise to level 1. 272 Fibonacci extension or the high of $59,819.90. From the price action, BTC price has reached a high of $59,450 and has commenced a downward move.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://insidebitcoins.com/news/bitcoin-btc-price-prediction-btc-usd-faces-rejection-thrice-at-the-60000-resistance-zone-resumes-downward-correction

Continue Reading

Blockchain

Dogecoin dumps following mention from Elon Musk on Saturday Night Live

Republished by Plato

Published

on

Meme cryptocurrency Dogecoin finally got its long-awaited shoutout on Saturday Night Live — but despite hodler hopes, the immediate result has been a violent dump.

First teased by entrepreneur and DOGE cheerleader Elon Musk in late April, the Tesla CEO finally mentioned the digital asset on live television tonight in his opening monologue of the sketch comedy show. The reference was a throwaway line from Musk’s mother, who joined him onstage and asked if her Mother’s Day gift would be Dogecoin; Musk replied that it would be. 

In the minutes afterwards, $DOGE dumped upwards of 25%, falling as low as $.50 from $.66 highs at the start of the show. It has since partially recovered, trading at $.52 at the time of publication.

An hour before the episode began, the price of DOGE sat at $.66, down from an all-time high of $.72. A pair of bearish headwinds may have shared responsibility for the pullback: Musk himself seemed to try and get ahead of the hype, urging followers in a Tweet to “invest with caution,” and a host of new data indicates that many investors may be rolling their DOGE profits into other, largecap digital assets

Additionally, Barry Silbert — the founder and CEO of Digital Currency Group, the parent company of crypto investment vehicle company Grayscale — announced a public short on DOGE via the FTX exchange. In a series of follow-up Tweets, he revealed that the position was $1 million in size, and that any proceeds or remaining funds after closing the short would be donated to charity. 

(It’s unclear if Silbert was is using “we” in reference to Digital Currency Group, one of its portfolio companies, or is simply and bizarrely using a plural pronoun in reference to himself). 

Many DOGE investors were nonetheless holding out hope for a high-profile shoutout on what looked to be a major pop culture event. NBC, the studio behind SNL, chose for the first time ever to live-stream the episode on Youtube, per the Wall Street Journal.

Even a mention could have significant impact on the price of DOGE as well: the meme currency has proven to be susceptible to price movements based on positive social media volume, and multiple studies have shown that Tweets from Musk often lead to price appreciation. A mention on an even bigger platform was thought to potentially lead to even greater gains. 

Leading into the premier of the episode, Alameda Research trader Sam Trabucco (who said in a previous Tweet that he was “studying the typical SNL episode structure to try and understand when a DOGE mention would be the most natural”) speculated that if a joke or mention didn’t come in Musk’s opening monologue, it would be “all over.”

Despite arriving during the monologue, traders nonetheless responded negatively. It remains to be seen if a DOGE-centric skit later in the show can perhaps turn the speculative asset’s fortunes around.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/dogecoin-dumps-following-mention-from-elon-musk-on-saturday-night-live

Continue Reading
Blockchain4 days ago

Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program

Blockchain5 days ago

eBay could add a crypto payment option, says CEO

Blockchain5 days ago

Starcoll To Issue Limited Edition Star Wars Collectibles as NFTs

Blockchain4 days ago

Pro traders buy the Bitcoin price dip while retail investors chase altcoins

Blockchain5 days ago

Singapore’s largest bank posts tenfold crypto volume growth in Q1 2021

Blockchain5 days ago

‘This ain’t no game’ as DOGE briefly flippens Nintendo and takes #4 spot from XRP

Blockchain4 days ago

China’s Central Bank to Partner With Alibaba’s Ant Group on Digital Yuan

Blockchain5 days ago

S&P launches cryptocurrency indexes, debuting with Bitcoin and Ether

Blockchain5 days ago

Bybit Launches Ether (ETH) Cloud Mining Service as Demand Booms

Blockchain5 days ago

WallStreetBets launches blockchain-powered app to decentralize indices

Blockchain4 days ago

Bitcoin Miners Moving Away from China, F2Pool Observes

Blockchain5 days ago

Bitcoin and Ethereum Indices Debut on S&P Dow Jones

Blockchain4 days ago

40% intend to use crypto for payments in the next year: Mastercard survey

Blockchain4 days ago

Here Is Why XRP Volume Has Recover Across Payment Corridors

Blockchain5 days ago

eBay is Considering Adding Crypto Payments & NFT Sales

Blockchain4 days ago

Another XRP lawsuit update: SEC accuses XRP Holders of ‘reciting’ Ripple’s litigation position

Blockchain5 days ago

Bank of England Used as Bitcoin Advertising Board Stoking Inflationary Fears

Blockchain4 days ago

‘DeFi may lead to a paradigm shift’ says Federal Reserve Bank paper

Blockchain5 days ago

The Reason for Ethereum’s Recent Rally to ATH According to Changpeng Zhao

Blockchain5 days ago

Bybit to Launch Cloud Mining to Democratize Ethereum Mining

Trending