Here’s the easiest piece of advice on buying Bitcoin in IRA: Identify everything that could go wrong and then avoid those things.
This strategy is based on Billionaire investor and Warren Buffet’s right-hand man, Charlie Munger’s advice, “invert, always invert.” Simply put, all he is saying is you need to figure out all the ways you could sabotage your success and then avoid them entirely.
That said, here are four rookie mistakes you need to avoid when buying Bitcoin into your IRA:
1. Failing to Research Extensively on Bitcoin IRAs
Many investors who are unfamiliar with crypto and Bitcoin IRAs make the mistake of doing little to no research about their custodians. For this reason, they end up on platforms that do not deliver any value, and worse still, lead to losses, thanks to expensive costs, hidden fees, security issues, and so on.
The best way you can invest in a Bitcoin IRA is by using a trusted service provider that has a reputation of helping investors establish IRAs that hold Bitcoin. You want a company that does more than allow you to buy Bitcoin in your IRA. It should also safeguard your investment. That’s why you should reach out to Viva Capital and let them help you.
All the same, keep in mind that Bitcoin IRAs, like most investments, don’t guarantee that you won’t take losses.
2. Ignoring Potential Risk
As far as investment gains or losses are concerned, you’ll have to decide whether or not long-term Bitcoin investing aligns with your risk tolerance and goals.
Cryptocurrency technology is relatively young, and the market is quite volatile. So, there’s always a chance, however slim, that your Bitcoin investment could experience serious dips.
Similarly, the prospect of incredible returns is quite high. But before you get carried away, be sure to re-assess your risk tolerance and capacity.
In the end, you want to be okay when things go either way.
3. Not Prioritizing Security
Want to know how to buy Bitcoin in IRA safely? Security should be way up there in your checklist when thinking of buying Bitcoin in your IRA. Why? Basically, if you lose your Bitcoin, you’re not likely to get it back.
That’s because Bitcoin eliminates the middleman in financial transactions using something called blockchain technology. Essentially, this means that you buy your coins without going through a bank or other financial institution.
For this reason, you need to find a service provider that delivers the highest security standards. The ideal Bitcoin IRA should store your private keys offline in cold storage and using a multi-signature protocol.
If your provider does not provide this feature or is scanty with the details, it’s best not to invest with them.
4. Not Understanding the Fees
Another thing you need to avoid is failing to understand the fees that come with a Bitcoin IRA. Before you start, consider all the fees of investing in a Bitcoin IRA against the tax advantages. Many service providers charge setup, maintenance, and transaction fees so try and get a clear estimate of how much you’ll incur as you invest and transact.
Final Take on How to Buy Bitcoin in IRA: Invest Your Retirement Money Wisely
Are you ready to include Bitcoin in your IRA? Investing in Bitcoin can prove to be a great way to set up your nest egg. However, to ensure the best outcome when the time comes, take time to do your research. so you can avoid these rookie mistakes.