Are you also looking to get in on some of the action from the lucrative cryptocurrency industry?
Cryptos, while risky, carry great potential for massive returns. The crypto market has grown exponentially in the decade or so it has been in existence, reaching a massive $1.6 billion in 2021, surprising proponents and critics alike.
By 2026, the market is expected to reach $2.2 billion. So, if you’ve not invested in crypto, the time to do so is now.
So, what’s the best way to buy crypto, and hopefully, gain from its growth? A
cryptocurrency IRA. A crypto IRA is a self-directed individual retirement account that allows you to invest in a variety of cryptocurrencies, including Bitcoin, Ether, Litecoin, and more.
Investing in cryptocurrency through a crypto IRA offers several advantages, including:
1. Tax-Free Growth
The best assets to invest in are those guaranteeing you steady growth over the years. In most cases, the expected growth from a portfolio can seem pretty good until you start accounting for taxes.
Other methods of
investing in cryptocurrency usually come with hefty taxes on gains. So, a good amount of your profits will be going to the government.
A crypto IRA, on the other hand, comes with tax benefits. That’s because it’s essentially a retirement account, and retirement accounts usually enjoy tax advantages. Your crypto will benefit from tax-free growth, and you will only pay the owed taxes when you decide to withdraw your gains.
2. Inflation Proof
Bitcoin and other cryptocurrencies are hailed as inflation-proof and, therefore, a great store of value, much like precious metals like gold. With fiat money, the value depreciates over time through inflation. That means storing your wealth in cash actually makes you poorer.
By packing your savings in a crypto IRA, you’ll be safeguarding your purchasing power, as the value of your coins will rise to match the dollar prices. Additionally, you will also be protecting your money from other external risks like stock market fluctuations.
3. Passive Income Source from Dividends
In the past, you could only
make money from crypto by mining new blocks or selling your coins.
Now, cryptocurrency investors can also make money in the form of dividends.
Dividends are simply regular payouts you get based on your investment and don’t really affect the investment’s value. You can earn these dividends by holding particular cryptocurrencies or by performing specific actions.
The good thing with dividends is that you actually earn money from doing little to nothing. The more you grow your cryptocurrency portfolio, the more you increase your earning potential.
Looking for the Next Best Investment? Invest in a Cryptocurrency IRA
If you’re looking to tap into the potential of the fast-growing cryptocurrency market, a crypto IRA is the perfect investment vehicle. It’s the best way to enjoy maximum growth while avoiding crippling taxes.
By investing in a crypto IRA, you also protect yourself from inflation and stock market fluctuations. Just make sure you do your research to find the best crypto IRA custodian or provider.