Best Places To Buy Crypto For Your Retirement Portfolio

Key Takeaways

Retirement investing requires a patient approach. Focus on the potential for long-term growth rather than short-term fluctuations.

Begin with a modest investment and gradually add to your crypto holdings as you become more comfortable.

When selecting a cryptocurrency exchange, prioritize security, fees, and user experience. If available in your country, consider investing in crypto through tax-advantaged retirement accounts like IRAs or 401(k)s.

Living during such a turbulent period of history is unquestionably detrimental to one’s mental health. Everyone’s ultimate goal is to achieve a certain level of financial stability. Regardless of how much money they bring in, many still find themselves in a position where they are broke, insecure, and financially in debt.

Cryptocurrencies have emerged as a new type of financial instrument and have reached new heights, becoming mediums for financial equality and putting power back in the hands of investors.

A method to become rich quickly is not the way to achieve financial independence. You are not “free” from the obligation of managing your money effectively simply because you have achieved financial independence. It takes a lot of effort, self-sacrifice, and time to get to the point where you have complete control over your finances. And the results of all of that labor are well worth it!

If you are thinking about starting your retirement planning early and want to add some digital assets to the mix, you are in the right spot! In this article, we’ll dive into the best places to buy cryptocurrency for your retirement portfolio. Let’s set you up for a future where your retirement investments are as cutting-edge as yours!

What Percentage Of My Retirement Portfolio Should I Invest In Crypto?

Even though crypto investing involves a certain amount of risk, it is still a good diversifier of an investment portfolio. However, since the crypto markets are still volatile, you should only invest a small percentage of your portfolio.

Most experts believe you should invest between 1% and 5% in cryptocurrencies, depending on your financial situation.

If you already have a retirement fund, good for you! You may want to diversify with crypto in addition to a traditional fund. Experts advise that you should:

Begin with a small percentage (1% – 5%).
Be prepared to lose the value of your investment.
Invest long-term to avoid short-term fluctuations.

What Cryptocurrencies Should I Buy For My Retirement Portfolio?

For starters, you are better off choosing Bitcoin (BTC) or Ethereum (ETH). These two are the largest cryptocurrencies in terms of trading volume and market capitalization. While they are also volatile and speculative, they are considered less risky than the newer and emerging coins.

Altcoins, which are all other coins apart from Bitcoin, are designed for unique purposes. Some are more energy-efficient than Bitcoin or offer better means of transactions. However, most altcoins are less likely to grow in value and can be riskier than BTC and ETH.

Best Places To Buy Crypto

If you are looking to add crypto to your retirement strategy, here are some platforms and factors to consider:

Self-Directed IRA Custodians

IRA Custodians in crypto are financial institutions specializing in holding and safeguarding digital assets within Individual Retirement Accounts (IRAs). They provide a secure platform for individuals to invest in cryptocurrencies like Bitcoin, Ethereum, and others while taking advantage of the tax benefits offered by IRAs.

If you want to invest in crypto through an IRA, consider these custodians:

Bitcoin IRA – Bitcoin IRA specializes in crypto investments for retirement accounts, offering a range of digital assets and robust security features.

iTrustCapital – iTrustCapital provides an easy way to invest in crypto within an IRA or 401(k), offering a range of digital assets and competitive fees.

Equity Trust – Equity Trust offers self-directed IRAs that can include cryptocurrencies, among other alternative assets.

When selecting a crypto IRA custodian, make sure to consider other factors like fees, supported cryptocurrencies available, IRA options, account minimums, and the custodian’s reputation and security measures.

Crypto Spot ETFs

Crypto spot exchange-traded funds (ETFs) became a trend in 2024 when the US Securities and Exchange Commission (SEC) finally approved the first-ever Bitcoin spot ETF in January and the Ethereum spot ETF in July. These can be a great option if you are not tech-savvy enough to handle your own crypto and would instead let a qualified custodian manage it for you.

The most famous Bitcoin spot ETFs right now are the following:

iShares Bitcoin Trust ETF (IBIT) – The iShares Bitcoin Trust ETF was launched by BlackRock, the world’s largest asset manager with $10 trillion in assets under management (AUM).

ARK 21Shares Bitcoin ETF (ARKB) – The ARKB 21Shares Bitcoin ETF is a joint venture between Ark Invest, a well-known investment firm led by Cathie Wood, and 21Shares, a digital asset specialist.

Invesco Galaxy Bitcoin ETF (BTCO) – The Invesco Galaxy Bitcoin ETF is sponsored by Invesco, a global investment management firm, and offers investors exposure to Bitcoin.

Fidelity Wise Origin Bitcoin Fund (FBTC) – The Fidelity Wise Origin Bitcoin Fund is an exchange-traded product (ETP) by Fidelity Investments that seeks to track the performance of Bitcoin.

VanEck Bitcoin Trust (HODL) – The VanEck Bitcoin Trust was launched by VanEck Associates Corporation and is designed to expose investors to the price of Bitcoin without having to purchase or hold the cryptocurrency directly.

Remember that these ETFs have management fees, so be sure to research the potential costs associated with the ETF issuer.

Also Read: US Banks Holding Bitcoin ETFs: A New Era In Crypto Integration?

Crypto Exchanges

Crypto exchanges are online platforms where you can buy, sell, and trade digital currencies. They act as a marketplace, allowing you to convert traditional money into cryptocurrencies like Bitcoin, Ethereum, etc. They usually have lower fees when swapping fiat for crypto. Here are some of the best crypto exchanges to choose from:

Coinbase – Coibase is a publicly traded company in the United States that offers a range of cryptocurrencies and has educational resources to help you understand your investments.

Kraken – Kraken has a strong reputation for the security of its assets, good customer service, and offering a wide range of crypto and fiat currencies.

Binance – Binance is a global exchange with the largest trading volume in the world. It offers a wide variety of cryptocurrencies and multiple trading pairs, and the platform has lower fees for high-volume trades.

You may also want to read our article on the top five cryptocurrency exchanges in the United States, so make sure to check out the article below! 👇

That said, crypto exchanges are the easiest on-ramping solutions when buying crypto. However, since this purchase is directed at your retirement portfolio, you may want to move your assets to a hardware wallet for long-term storage. We have an article for that as well! 👇

Recommended: Top 5 Crypto Hardware Wallets In 2024

Final Thoughts

Investing in crypto is one great way to increase your wealth over time, but it does come with risks. It is important to remember that investing is a long-term game, and patience and discipline are prerequisites in this market. Taking calculated risks and seeking expert advice can help you achieve your investment goals. Remember that investing is not a get-rich-quick scheme but a tool to build wealth over time!