How to Use Bitcoin to Fast Track Your Retirement
Using Bitcoin, Ether, and other cryptocurrencies to fast track your retirement is becoming increasingly popular around the world. Despite its volatile prices and relatively unpredictable future, investing in cryptocurrency has helped many cash in on an early retirement plan.
With annualized returns of 230% over 10 years, it is no surprise that bitcoin has become an attractive retirement plan. Here is how you can do the same:
Hold cryptocurrency in your individual retirement account (IRA)
One way to ensure that crypto is part of your retirement plan would be to investment in your IRA and have it grow in there tax-free. It only gets taxed as you cash it. This would be a sure fire way to save over many years while avoiding taxation on the appreciation of the cryptocurrency.
One provider of IRAs that has made this a reality is Kingdom Trust. Under its newly launched platform, you can hold cryptocurrencies within your IRA. Despite the fact that this added layer of flexibility will cost you more in fees, the digital assets it allows you to hold could potentially generate a big financial win down the line.
Buy and hold
If you had invested $1,000 in Bitcoin in 2015, you’d have $72,044.15 today. This impressive return is anticipated to hold over the coming years as bitcoin and other cryptocurrencies gain widespread adoption. Buying Bitcoin and holding on to it until the end of this bull run (anticipated to go until the end of 2021) is the simplest way to amass more money and fast track your retirement.
Experts also recommend that those eager to see impressive returns buy through periods during which the price dips.
Rely on long-term growth
It is no secret that the price of cryptocurrency is volatile on the short-term, but it offers significant long-term returns. We still do not have a solid idea of what cryptocurrencies’ growth potential really is, but experts estimate that Bitcoin, for example, should skyrocket to $300,000 in just five years. Investing in crypto early on could create an unparalleled retirement fund.