There's a growing curiosity on how to acquire XRP. However, it's important to know the different ways to do so. People may or may not understand when buying and selling XRP on a crypto exchange, there could be tax implications and other risks. But there are other options available.
In this article, we will highlight the main advantages of buying and selling digital assets in a tax-advantaged IRA.
Why XRP in an IRA?
Some investors prefer buying and selling digital assets, like XRP, in an Individual Retirement Account (IRA) for several reasons:
- Tax Advantages
- The one key reason investors use IRAs is the associated tax benefits. There are two main types of IRAs: Traditional and Roth. Traditional IRAs allow for tax-deductible contributions (subject to income limits), but distributions in retirement are taxed as regular income. Roth IRAs are funded with post-tax dollars, but both contributions and earnings can be withdrawn tax-free in retirement.
- Retirement Savings
- IRAs have been designed to facilitate long-term savings for retirement. They encourage regular savings and investment habits, which have the potential to exponentially grow over time due to the effect of compounding.
- Assets Held Off Balance Sheet
- At iTrustCapital, safeguarding clients' assets is of the utmost importance. We’ve adopted a strategy of preserving client assets off balance sheet, holding them in custodial accounts with a regulated chartered trust entity. This approach enables us to offer compliant retirement accounts, assuring that client funds are never mixed with our businesses' operational capital. When buying crypto from an exchange, it's worth noting that even today, some large-scale exchanges and platforms continue to hold client assets ON their balance sheet. Consequently, these client assets may be used for speculative ventures on their balance sheet.
When you combine both XRP and an IRA, an individual can benefit from not only the tax benefits but asset security offered by these investing vehicles.
Leveraging an IRA
When you acquire cryptocurrency outside of an IRA, you're essentially utilizing post-tax dollars in a crypto exchange account. If the cryptocurrency appreciates and you decide to sell, be prepared to potentially pay capital gains tax on profits.
With a clearer picture of XRP and the advantages of leveraging an IRA for buying and selling digital assets, one can see the potential benefits for long-term investors. If you're looking to buy and sell XRP in a tax-advantaged crypto IRA, iTrustCapital can pave the way!
Create an account or log-in today to start buying and selling through your tax-advantaged IRA.
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
DISCLAIMER
This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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