This means that you can't contribute cryptocurrencies to your Roth Individual Retirement Account (Roth IRA) directly, but you can add them to your IRA through a purchase. It's worth noting that annual contributions to Roth IRAs are limited according to IRS specifications and that investors can hold on to Roth IRAs for as long as they want, since there are no mandatory minimum distributions. The co-founder of Bitcoin IRA added that, while real estate and gold were the main examples of diversification in the past, cryptocurrencies “have established themselves as an alternative in the modern economy.” Using IRAs to prevent cryptocurrency investments from causing taxable events is a strategy that has been considered for a long time. Last year, North American mining and hosting company Compass Mining offered a solution for Bitcoin (BTC) users to mine directly in their IRAs.
Additionally, there are many Gold IRA rollover companies that offer services to help investors diversify their portfolios with gold and other precious metals. Traditional IRAs and Roth IRAs can only contain securities such as stocks, bonds, certificates of deposit, and mutual or exchange-traded funds (ETFs). Payment companies such as Block (parent company of the Square brand) and PayPal are creating cryptographic lines of business.
