IRA Financial’s Adam Bergman discusses the partnership with Gemini Exchange and the ability to use the IRA Financial app to invest in Bitcoin and other cryptocurrencies with Gemini.
IRA Financial recently announced it has partnered with Gemini Exchange to purchase Bitcoin and other cryptocurrencies. You can now purchase cryptos directly from the IRA Financial app, without the need of an LLC or third party broker. Mr. Bergman talks about the partnership and how easy it is to invest in Bitcoin in his latest podcast.
What is Bitcoin?
Bitcoin is the most important and well known cryptocurrency out there. Essentially, it’s the leader in digital currency. Ironically, the IRS has stated that Bitcoin is treated as property, and not currency, for investment purposes. This means, you can invest in cryptos with your retirement account. For tax purposes, it will be treated like any other property, such as stocks and real estate.
While many businesses and service providers now accept Bitcoin as payment, cryptos are generally considered an investment. Like any other investment, the hope is that your crypto investment will bring nice returns. Cryptocurrencies are in their infancy, and therefore a very volatile investment. For example, Bitcoin reached a peak of almost $20,000 in late 2017. However, it bottomed out and fell under $3,500 a year later. However, 2019 has seen a resurgence in price. While not at its peak, it’s hovering around $7,500 on Thanksgiving, 2019.
Like any other investment, you should consult with a financial advisor. Remember, IRA Financial does not offer financial advice. Remember, our articles, podcasts and videos are for educational purposes. We do feel that cryptos are here to stay and should be considered for your portfolio. Again, this depends on your risk tolerance and ultimate financial goals. Read all about Bitcoin!
What is Gemini Exchange?
Gemini Exchange is a place where one can go to buy, sell and trade cryptocurrencies. It’s one of the most popular crypto exchanges out there. It’s essentially the New York Stock Exchange of the cryptocurrency space.
Previously, if you wanted to invest in Bitcoin with your IRA, you would need to create an LLC, which costs money, of course. With our new partnership, you can use your Self-Directed IRA directly with Gemini. Here’s how it works:
- Establish a Self-Directed IRA with IRA Financial Trust Company
- Fund the IRA, either by rollover or direct contribution
- Open an account with Gemini Exchange, in the name of the IRA
- Funds are transferred to your Gemini Self-Directed IRA crypto account
- Buy/Sell/Trade Cryptocurrencies, including Bitcoin, Etherium and Litecoin
Since you are using a tax-advantaged retirement account to invest, there are no taxes to pay! When using a traditional account, all taxes are deferred until you distribute funds during retirement. A Roth IRA allows for tax-free distributions, since Roths are funded with after-tax funds.
Why Use IRA Financial and Gemini?
As stated by Mr. Bergman:
We (IRA Financial) will be the first IRA custodian to allow investors to buy cryptos on exchange using an IRA without needing a broker or LLC
Gemini Exchange is a respected name in the crypto space. Your transactions are totally secure and there’s no need to worry about fraud. IRA Financial, is at the forefront of the crypto investing world. We make it easier than ever to make alternative asset investments, including cryptocurrencies.
As always, thanks for listening to “Adam Talks” and be sure to check out all of our past episodes on our SoundCloud page. Lastly, We’d like to wish everyone a very Happy & Health Thanksgiving!