This year, Fidelity Investments, the largest provider of retirement plans in the United States, became the first to add Bitcoin as an investment option to its 401 (k) plans. Under their plan, investors will be able to allocate up to 20% of their retirement savings to bitcoins. Investing in Bitcoin for retirement could offer you substantially higher returns and add diversity to your retirement portfolio. But if there's one thing we've learned about cryptocurrencies, it's that they're extremely volatile and very risky.
Here's what you need to know if you've decided to save for retirement in a Bitcoin IRA. It is now allowed to add cryptocurrency to your retirement portfolio. But should you? Bitcoin is the best-known cryptocurrency, and Ethereum is close second. Cryptocurrency, which only exists digitally, works using an encrypted algorithm to send payments, making it more secure and without the need for a third party, such as a bank or financial institution.
We have a team of IRA specialists, who are well aware of the 401 (k) IRA reinvestment rules to Bitcoin. Instead of the one-time buying experience offered by most brokerage firms, where you can create an IRA and buy and sell securities in one place, you may need to do a little more DIY with a Bitcoin IRA.