Crypto Currency IRA-Bitcoin

[OneMarcilV]

Well just about 2 hours ago Lite coin was at minus 5.34. Now at minus 3.83.

 

[OneMarcilV]

Ok I gave selling a tiny portion of me LiteCoin. Sold 5.00. That money was transferred to my Pay Pal balance. Then I transferred that money to my bank account. The whole ordeal took less than 4 minutes.

I love simple buying and selling like this. Works very well.

 

[Brat]

I looked for those on the Fidelity website and couldn't find them.

 

[Dash man]

I looked for those on the Fidelity website and couldn't find them.

Check out the Coinbase website. There are also many others, but the regular brokerages don’t trade in cryptocurrency directly. BlockFi is another site where you can actually earn interest if you store your crypto there.
Read up on it before you get too involved, but starting with a small amount of cash is easy.

 

[OneMarcilV]

That is why I only spent 300.00.

 

[Teacher Terry]

Originally we mined also until it was no longer profitable. Taxes will be substantial.

 

[acronymous]

I'm opening up an IRA LLC via Madison Trust to invest in crypto. Plan is to diversify among multiple assets with 30% allocated to stablecoin and rebalance without cap gains.

One downside is that earning yield through staking or lending via BlockFi and friends appears to generate UBTI (unrelated business taxable income). I don't like the idea of maintaining that stablecoin position with no interest but maybe that's the price to pay to avoid cap gains.

Does anybody know if a bond ETF that pays dividends instead of interest would avoid the UBTI issue in an IRA LLC?

 

[tenant13]

I'm opening up an IRA LLC via Madison Trust to invest in crypto. Plan is to diversify among multiple assets with 30% allocated to stablecoin and rebalance without cap gains.

One downside is that earning yield through staking or lending via BlockFi and friends appears to generate UBTI (unrelated business taxable income). I don't like the idea of maintaining that stablecoin position with no interest but maybe that's the price to pay to avoid cap gains.

Does anybody know if a bond ETF that pays dividends instead of interest would avoid the UBTI issue in an IRA LLC?

Take a look at these guys too: https://www.rocketdollar.com/

 

[Teacher Terry]

For a initial investment of 4K over the years we have made 50k. Yes we put the money in our bank accounts. We will completely cash out this year if all goes well.

 

[a60dan]

I educated myself on gold and BiTCoin (BTC) cryptocurrency.

I've not seen a BTC IRA that I trust with reasonable expenses. An ETF is more familiare and comfortable for me to deal with.

Both are speculative, not "investments".

A friend shared his BTC experience, and recommended that I hold my own in a "cold wallet". https://99bitcoins.com/ is a good resource for a beginner.

I started very small with BTC. An ETF is much easier (for me) to deal with. Holding my own crypto is challenging. I'm intrigued more by the Blockchain technology than comparing it to gold. I enjoy learning new technology.

I can afford to "lose it all" as I did when the local telephone company became Global Crossing years back.......

That said, I've had less than 3% of our assets in BTC (hold my own) and gold (SGOL ETF).

As I started to rebalance my non-crypto assets (held electronically in 3 different centralized institutions), I realized the following "since inception" (which is only 1 year ago):

My gold barely broke even. I intended to hold it long term, but had put it in the "wrong" accounts per my evolving retirement plan.

My BTC was up over 300% last time I checked. I got luckier than I ever have at the casino or with a lottery ticket, but I haven't sold it yet.

I am considering recovering my original "speculation amount" and holding the unrealized gain indefinitely.

My original intent was to hold the BTC as a hedge against the US dollar. I was taught the the definition of inflation is "too many dollars chasing too few goods". I think that inflation, and the "value" of the US dollar are both currently misrepresented.

 

[Athermos4u]

Please don't speculate in crypto currency. There are plenty of actual stocks that fit the same volitility, beta, and price appreciation profile, but that actually have earnings. The fact that crypto is everywhere right now is reason enough not to buy it. It's a FOMO trade at this point. Price is in a channel, and trading volume peaked in mid-January.

 

[Athermos4u]

Arguing that bitcoin is a good investment because it uses crypto is like arguing that myspace is a good investment because it's uses the internet. Two different conversations, which, if confused, will cause a lot of pain. The technology first mover is usually not successful. Remember ask Geeves? Prodigy? Webvan grocery delivery?

 

[Athermos4u]

I would, but it would do no good. How many vendors take BTC as payment? How many are on the Visa network? How many millibits are there? How many credit transactions are there every day? Does anyone even know a BTC speculator that uses BTC to pay for things?

 

[Athermos4u]

Most don't buy physical gold and take delivery. There is codex, futures, future options, gold miners, gold etfs, etc. They are not all the same. Buyer beware.

 

[Athermos4u]

https://zipmex.com/learn/is-bitcoin-traceable/

 

[Athermos4u]

There is confusion...

You could make similar arguments about FIAT money. It's not like USD is backed by anything tangible (unless you think that “full faith and credit” of the U.S. Government can be quantified).

I think we can agree that FIAT is created at will by simply issuing debt - whether by commercial banks or by the Fed purchasing US Treasuries. That's not very different from blockchain technologies involved in creating cryptos except that in case of bitcoin the amount of coins created is capped at 21 million while supply of USD is unlimited.

As to the legal bank guarantees: you can't possibly think that ALL deposits are safely insured by FDIC? Not that it matters since you can always print as much USD as you want to meet your obligations.

Having said that, I totally agree that enthusiastically backing crypto currencies right now would not be prudent. Cautiously exploring the possibilities however while learning about the fundamentals will help you see where the future of finance is heading. Why not be ready? We may have to wait for the quantum computing for all the money to become digital but it's coming.

The USD is an IOU backed by the US Government which currently owns land and deposit assets valued at $269.6 Trillion Dollars. Debt issuance, and fiat debt are two separate conversations.

 

[Athermos4u]

There is quantum computing now...

Bitcoin can't be hacked until there is quantum computing. I read a study recently that said 67% of HODLRS will hold Bitcoin even if it goes to 0. Currently do not own any but will be putting in about 3% of NW on this pullback.

https://www.cnet.com/news/ibm-now-has-18-quantum-computers-in-its-fleet-of-weird-machines/