As of now Bitcoin is the king of the Cryptocurrencies.
Has the IRS deemed it a form of currency? – YES
Can you hold Bitcoin in your self directed IRA? – YES
Should you hold Bitcoin in your self directed IRA? – YES
Like physical gold, putting bitcoin in your IRA is for the long haul, for the estate. The volatility is “high seas” right now, such is the case with everything however.
Our world is changing, if your smart enough to have a 401k to insure you have a bright future, you should be smart enough to cover every angle in this unpredictable world. That includes all asset classes; real estate, cash, precious metals, stocks, bonds and now crypto currencies.
But how the heck do you store a virtual anything in an IRA?
Offline – I’m sure you’ve already figured out that a bitcoin is a string of bits, or bytes, an encryption key of sorts. The unique string of numbers is what you get when you purchase a bitcoin. You then store that coin in a digital wallet that is designed to hold a collection of these large numbers securely. Once you have your wallet filled with your coins, you store this wallet on a hard drive. Then you remove the hard drive from any form of connectivity to any type of machine. Ideally, for an IRA, the hard drive will be placed alongside your physical gold bars in the storage unit you have designated, otherwise known in the crypto world as “cold storage”.
If you would like to get more details on the process of adding bitcoin to your IRA, click the image below, or;