Many prudent investors are looking for a way to diversify their retirement accounts with something other than stocks and bonds. The idea is to have holdings other than paper assets (stocks and bonds) denominated in the US dollar, America’s fiat currency.
Gold is one good option but Bitcoin, a digital currency is gaining serious momentum with those holding IRAs and 401ks. Bitcoin and similar cryptocurrencies are IRS approved for placement in a Self Directed IRA. In fact the Internal Revenue Service considers Bitcoin a “virtual currency” and has an equivalent value in real currency. For federal tax purposes, Bitcoin is a “property” and must be held by a custodian in order to have an IRS compliant IRA.
Since Bitcoin and other digital currencies can be susceptible to cyber theft, it is imperative that your custodian utilizes the most secure storage possible. We only found one firm that offers hacker proof, disaster proof, malware and virus protected offline hardware wallet, cold storage. The company is Regal Assets and their Brinks hardware wallet (the 5th most secure in the world) is insured by Lloyds, London and 100% more secure than the competition’s virtual wallet storage. Why would you risk your life savings with second tier storage? Be sure to check out our Bitcoin IRA Reviews as well.