What Is Ethereum IRA? What You Need To Know To Succeed With Crypto Retirement Accounts
An Ethereum IRA is a government-approved retirement fund. It has the same features that regular IRAs have, however, your money goes into buying Ethereum. But what is Ethereum anyway?
It is basically a lot like Bitcoin, the world’s most famous cryptocurrency, although unlike Bitcoin it has features that developers or computer super geeks find useful.
If you know anything about cryptocurrencies, you already know that they are fast becoming digital gold. If you invested $10,000 in Bitcoin in 2010, you would have made over $50,000 in profit with the tremendous surge in the price of this pioneering cryptocurrency within the last few months.
Ethereum is looking a lot like Bitcoin in terms of growth. Right now, it is trading at over a thousand dollars per piece when it was only a few dollars when it was first released. Although the cryptocurrency market has seen its share of tumultuous ups and downs, the fact is that it has proven to be inflation-proof like gold, making Bitcoin and Ethereum a must-have in your retirement nest egg within a 401k or IRA.
If you are interested in investing in a Bitcoin IRA, go to websites like Smart Bitcoin Investments. Open an account and find it. When the money is reflected in your account, you can then direct it to buy how many units of Ethereum. The cryptocurrency will then be stored in an online wallet for safekeeping. It’s really a lot like a gold IRA where the gold is kept safe by a custodian. And like any other IRA, you get tax benefits from the government especially if your investment is stored inside of a tax-advantaged Roth IRA.
Before investing in cryptocurrency IRAs, though, make sure to read the terms and conditions set by the IRA company. There are those that impose a penalty on early withdrawal. How much money can you earn on cryptocurrency IRAs?
Well, that really depends on the movement of the prices. As far as an expert can tell, though, we will not be seeing the end of IRA Bitcoin and Ethereum anytime soon. In fact, they’re only expected to grow. But if you are like most non-tech people, though, you are probably wondering how cryptocurrencies work.
There are always only a little over 21 million Bitcoins in circulation at any given time (we don’t have that kind of information on Ethereum). They are backed by data block chains, which act like gold when it was used to back the dollar and other currencies. The value of Bitcoin is fueled by supply and demand. This is unlike fiat currencies where the money in circulation can be inflated by the central banks. It is precisely because it is non-regulated by governing central bank that Bitcoin has been able to reach unprecedented upsurges in its price, which is even higher than gold.
Hardcore cryptocurrency investors are seeing the same pattern in Ethereum (ETH) and it will only be a matter of time before the price breaks the $10,000 ceiling. Definitely, you will want to get on board early so you can get the most amount of profits from an Ethereum IRA.