A Cryptocurrency (also known as digital currency) IRA works much like any other individual retirement account. You can make regular, tax-advantaged contributions to an IRA that is set up and administered by a custodian. However, rather than investing in traditional investments like stocks and bonds, you invest your savings in digital currency. You can also choose to roll over assets from an existing retirement account into a self-directed Cryptocurrency IRA.
How does it work?
Investing in cryptocurrencies through a Cryptocurrency IRA is just like investing in any other IRA, and is most analogous to a Precious Metals IRA. Once you determine how your Cryptocurrency IRA will be funded and transfer funds to the IRA, you can purchase cryptocurrencies with those funds. Those digital assets will be stored in the possession of your Cryptocurrency IRA custodian.How do I know if I’m eligible to set up an account?
To be eligible to establish an account, you must:- Be a US Citizen.
- Have a legal address located within the United States.
- Be over the age of 18.
- Be able to provide a statement for the account(s) you will be funding your new account from.
How can I help speed up the funding process of my IRA?
For an IRA transfer, make sure that the amount you want to transfer from your existing IRA account is already liquidated and sitting in an uninvested cash position, and provide an account statement or document that shows:- The name and phone number of your current custodian from your statement or online access
- Your name EXACTLY as it appears your account registration (for example Mr. John Smith, Sr. versus Mr. John Smith, III)
- Your account number and the type of account (e.g., Roth or Traditional IRA)
- Your plan details and account number
- The name and phone number of your current plan administrator or trustee from your statement or online access
- Your name EXACTLY as it appears your account registration (for example Mr. John Smith, Sr. versus Mr. John Smith, III)