7 Benefits of Using a Crypto IRA Trading Platform

7 Benefits of Using a Crypto IRA Trading Platform

Planning ahead for your financial future is more important than ever at this point, and it’s going to become even more crucial moving forward. After all, inflation is taking its toll, causing prices of even the most basic necessities to skyrocket. Prices have risen by more than 1,000 percent over the last century. They’ve surged by more than 22 percent just over the last five years. That trend isn’t expected to change direction, either. If anything, it’ll most likely continue on its current path. If you don’t plan ahead for your financial needs, you could find yourself running out of money very quickly.

IRAs are among the most popular retirement savings plans. They offer several advantages in their own rights, not the least of which is the flexibility to choose different types of investments and decide when to start taking distributions. Of course, the investments you choose can make a major difference in the returns you get from your IRA. Quite a few people are adding cryptocurrencies to their individual retirement accounts to help maximize those returns. Consider some of the potential benefits of using a crypto IRA trading platform to foster your retirement savings. 

1) More Investment Choices

With conventional IRAs, you have numerous investment options. Cryptocurrencies aren’t among the possibilities, though. A trading platform that allows for cryptocurrencies expands your options.

2) More Opportunities for Diversification

Several cryptocurrencies have been developed at this point, each one with its own levels of growth potential. Being able to take advantage of all those possibilities takes your potential for diversification to entirely new heights. The more diversification opportunities you have, the more earning potential you could gain. 

3) Safeguarding Against Inflation

Having more opportunities for diversification gives you more ways to safeguard against inflation. Reports show that cryptocurrencies don’t behave the same ways as stocks and other investments. As such, they don’t lose value when other investments do. Sometimes, their values surge as those of other investments plummet. 

4) More Liquidity

Additionally, crypto offers more liquidity than other types of investments. It’s not traded on traditional exchanges, so it’s not subject to the same rules. You can quickly buy and sell cryptocurrencies anytime you choose. 

5) Lower Capital Gains Taxes

Crypto comes with lower capital gains taxes over time than other investments as well. IRAs in general aren’t subject to capital gains taxes the way other accounts and investments are. As long as you hold off on taking distributions until you’re at least 59 1/2 years old and the account is at least five years old, you’ll pay lower taxes. 

6) Higher Post-Tax Income

Since IRAs have fewer taxes than other investments, you’ll lose less of the income your crypto earns over time. That means you’ll be able to keep more of your gains. As a result, you’ll have more money to draw from during retirement. 

7) Exceptionally High Growth Potential

It’s no secret that the values of cryptocurrencies fluctuate wildly. Back in 2009, Bitcoin was worth only a fraction of a cent. At the end of 2017, it was worth well over $12,000. At this particular moment, it’s worth more than $91,000. Its value rose an estimated 125 percent last year compared to the S & P 500’s 23 percent. There’s little denying that crypto has exceptionally high growth potential despite its possible risks. 

Growing Your Retirement Savings With Crypto

Several investment opportunities are available to help you bolster your retirement savings. IRAs are a leading choice, and a crypto IRA trading platform can help you maximize your potential for gains. Though there are risks involved in adding crypto to your portfolio, just as there are with all types of investments, the possible benefits may very well outweigh the potential downfalls.

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