When Bitcoin was created in 2009 in response to the economic downturn at the time, not a lot of people would think that it would become such a premium asset. Fast forward a decade later, people who invested in Bitcoin at the time have made millions from their investment.
Today, there are thousands of cryptocurrencies just like Bitcoin with various specialties and potential. People who would have otherwise invested in assets such as real estate are turning to cryptocurrencies to diversify their investment portfolios.
If you’re still sitting on the fence, below is a detailed analysis to help you understand why investing in cryptocurrency can unlock your investment portfolio. But first, let’s explain what a crypto IRA is and what sets it apart from conventional retirement accounts.
What Is a Crypto IRA
Crypto IRAs are simply retirement accounts that include cryptocurrencies within their holdings. However, note that the IRS (Internal Revenue Service) has not yet provided accounts meant explicitly for holding cryptocurrencies. But it does consider crypto as property, meaning coins are taxed in the same way as other investments such as bonds and stocks.
Why Investing in Cryptocurrency Is a Great Idea
1. Transparency Is Prioritized
Every transaction involving crypto is monitored and recorded in the blockchain. Blockchain is a database that serves as a public ledger. Additionally, every transaction is verified and once confirmed, cannot be changed or manipulated by scammers and hackers.
2. You’ll Have Full Control Over Your Investment
All cryptocurrency owners have full control over their investments and every transaction they conduct. Each transaction is independent of the parties’ identities, and none of their information is made public. This reduces the risk of identity theft and fraud from happening.
Since cryptocurrencies are decentralized, crypto owners don’t need a bank or other financial institution to conduct transactions.
3. You Can Access Your Investment at Any Time
Another advantage is that you can access your coins at any time and make transactions whenever you want, from anywhere. You don’t even need a high-tech computer to transact. Even your phone can work. All you need is an internet connection, and you’ll be good to go.
4. Immense Potential for Growth
Perhaps the biggest incentive to invest in cryptocurrency is the significant potential for appreciation. While it may seem like established cryptocurrencies such as Bitcoin and Etherium have come a long way, experts believe there’s even more room for growth.
As such, try and consider the lesser-known cryptos that have even more potential for growth in the future.
To Sum It Up
Many people see a future run by crypto as a currency and are making investments today.
Investing in crypto means you get to diversify your investments to avoid putting all your eggs in one basket. All the same, you should be very careful as some cryptocurrencies, including bitcoin, can be highly volatile and unpredictable.
However, from a neutral standpoint, the potential benefits seem to outweigh the risks. If you invest in a crypto IRA today, the “future you” might thank the “current you” a lot for it.