Recently, cryptocurrency platforms have seen a meteoric rise in their values. There are several of these, like Bitcoin, Ethereum, Litecoin and Ripple. Over the last year, the brand values of these cryptocurrencies have soared and the price of one Bitcoin has increased by 1000% in the past year.
Introduction to IRA Bitcoin
IRA Bitcoin is a company that allows its customers to securely invest in Bitcoin and other cryptocurrencies like Ethereum, Litecoin and Ripple, utilizing funds from the customers’ IRA and 401K accounts.
IRA Bitcoin is a largely unregulated “financial conduit” that makes use of self-directed IRAs. This service addresses the security issues regarding these cryptocurrency platforms as the operations of these cryptocurrencies are carried out in a unique manner.
This service uses Bitgo as the digital wallet and the latter creates three keys for the users. The first it saves itself, the second it gives to the IRA custodian and the third to a start-up that provides recovery services if the key gets lost or damaged.
The following steps show how it works:
- The first thing to do is to download the service and sign up an agreement with IRA Bitcoin LLC
- The second thing is to save the price of the currency on the day the customers avail its services as the market prices of these rapidly change. Locking one’s price will protect their investments in the time of such fluctuations
- The third step is to set up an account with the respective custodians aligned to the service
- Then, the customers can purchase the selected cryptocurrency and store it in a hardware wallet. The entire process offers maximum protection to the coins in case of hardware malfunctions and cyber attacks
This has become quite a lucrative alternative as investing in cryptocurrencies gives the customers the opportunity to diversify their retirement portfolios.
