Are you worried that your 401k balance won’t be enough to fund your retirement? It may not. The sad truth is that many Americans are not ready for retirement. Many may never be able to retire. The reality of an unattainable finish line is discouraging after decades of hard work. Is there still something you can do?
A cryptocurrency IRA is risky. You may lose your investment, but if it works out, then a comfortable retirement may still be on your horizon. Let’s look at some of the challenges facing cryptocurrencies and retirement savings. Then we’ll look at how you can overcome each of these challenges.
Jumping Into a Cryptocurrency IRA Without Research
Even with occasional crashes, Bitcoin’s meteoric rise in value is a magnet to investors. It’s exciting, and everyone wants a part of the wealth that seems to be coming out of nowhere. Stories of newly minted millionaires make cryptocurrency look like a no-fail investment. A few people have done very well with little research and knowledge, but that is true in any new market. As a retirement investor, you are looking at cryptocurrency as a long-term investment. Yes, you may miss a profit swing if you take time to learn about how cryptocurrency and blockchain work, but you will make wiser decisions.
Missing the Advantages of Independent Investing
You may remember the days when you had to wait two weeks for a mutual fund company like Fidelity to send you a prospectus. If you decided to invest, the paperwork and banking procedures took at least another week. In those days, small investors were dependent on professional investment managers. Fortunately, things are different now.
The Internet provides plenty of tools and resources for independent investors. You can start from scratch and learn an incredible amount about Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Litecoin (LTC) over a weekend. At BitTrust, we provide our clients with self-directed IRAs. You can tailor your investment strategy to fit your needs, goals, and risk tolerance.
Putting All Your Eggs in One Basket
Cryptocurrency will change the foundations of modern finance, but it’s still a risky investment. Even though Bitcoin and Ripple will grow over the long term, there will be peaks and valleys. What if you need access to the funds of your cryptocurrency IRA during one of the valleys? You would have to sell a good investment at rock-bottom prices. You can get around this problem by diversifying your investment portfolio. When you balance high-risk, low-risk, liquid, and non-liquid investments, then you have the best of all worlds. You can make high returns, but still, have funding for the surprises and emergencies in your future.
Choosing the Wrong Cryptocurrency Wallet
You’ve probably heard stories about Bitcoin crimes where thieves successfully escaped with millions in cryptocurrency. When you invest in cryptocurrency, you need a safe and secure wallet to protect your money from criminals. We have partnered with BitGo because its wallet combines the tightest security available with a customer friendly interface. Too much protection can hamper your movements. You want to keep out dishonest parties and still be able to access your crypto funds for trading. The BitGo wallet uses multiple key encryption architectures to secure your account, but you only have to keep track of one of the keys. Their patented backend technology does the rest.
Call Anytime – No Sales Pressure
The decision to open a cryptocurrency IRA is not one to take lightly. We understand and will not pressure you. Call our reps anytime with questions and concerns. We’ll help you in every way possible to make the best decision for your retirement goals.