Cryptocurrency is one of the hottest assets to invest in today. Bitcoin, the biggest crypto by market capitalization and price, has hit an all-time high of $68,000 as 2021 came to a close, earning investors a good return on their investment.
That said, there are several ways you can invest in bitcoin, with some more expensive and cumbersome than others. Of these methods, Bitcoin IRA offers the most advantages.
A bitcoin IRA is a type of individual retirement account that allows you to add alternative assets, such as cryptocurrencies, to your portfolio. Among other things, it diversifies your investment portfolio, has the potential for handsome returns, and saves you money through tax advantages.
You need a provider, otherwise known as a bitcoin IRA custodian like Viva Capital, to start a bitcoin IRA. There are numerous providers in the market, so making the right pick is crucial to achieving your goals. So, what requirements should a custodian meet?
1. Secure Crypto Storage
One of the most important things to check for in a custodian is their security protocol. Crypto is a digital asset not backed by fiat money. That means, if someone were to get a hold of your keys and steal your bitcoin or any other crypto, you would lose it forever. Safe to say that hacking is a real threat in the cryptocurrency world.
So, you want to be sure that the custodian you are considering takes security seriously. Companies do that by adding several security levels, storing the digital assets in physical vaults, and insuring client investments.
2. Adequate Crypto Selection
While Bitcoin is the most popular crypto, it is not the only one with the potential for massive profits. There are several other altcoins you can invest in as well. So, if your goal is to invest in a couple of cryptocurrencies, even if in the future, make sure your custodian accommodates it. Most importantly, ask whether the custodian plans on expanding their selection in the future.
3. Flexible Trading Options
There are multiple ways you can make money off of bitcoin and crypto, in general. But the most profitable by far is trading. So, you should find out how your custodian facilitates trading and if they have connections with reputable trading platforms.
Most importantly, find out if the custodian allows for flexible trading management. Full account management if you do not want the hustle of doing it yourself and independent trading if you so desire to handle your own investment.
4. Fair Service Fees and Account Minimum
Save for security; fees are probably the most important consideration when picking out a bitcoin IRA provider. While fees are inevitable, they should at least be fair enough not to eat at your profits significantly. As for the minimum deposit, ensure it is reasonable and attainable.
Establish a Bitcoin IRA That Aligns with Your Investment Goals with Viva Capital
Whether you are a beginner or seasoned investor, investing in bitcoin through a self-directed IRA is definitely a smart move. However, choose your custodian wisely to be sure you are putting your money in safe hands. If you are looking for a provider who ticks all four boxes, Viva Capital is worth a shot.