Bitcoin could be on the verge of a major new bull run. According to Tor Demeester of Adamant Research, in his post How to identify a Bitcoin boom situationWe may be in the early stages of a new multi-year bull market that could push Bitcoin prices into six figures.
“During this accumulation phase, we expect Bitcoin to trade in a range between $22,000 to $42,000, until a new multi-year bull market pushes it to as high as $120,000,” Demeester noted.
Imagine securing a large allocation of Bitcoin before this rally begins – an allocation that could be completely tax deductible, and funded from an old retirement account you may have completely forgotten about!
Step 1: Purchase hardware wallets
The first step is to get the tools you need to ensure the security of your Bitcoin. A hardware wallet allows you to store your Bitcoin keys offline, giving you full control of your funds.
Start by purchasing a couple of hardware wallets, such as those offered by Trezor or Ledger. Unchained currently supports a range of devices, including the Ledger Nano Payment Full list of hardware wallets supported by Unchained.
For optimal security, it is recommended to purchase directly from the manufacturer, but purchasing from a trusted third-party retailer, such as Best Buy, is also acceptable. This is especially true in the context of multisig which eliminates any single switch as a single point of failure.
Make sure you have at least two wallets — you’ll need both to set up your Unchained IRA vault.
Step 2: Create an account on Unchained.com
Next, go to Unchained Create an account. The process is simple: enter your name, email, phone number and create a strong password. Unchained takes your privacy seriously.
Once you’ve created your account, select the type of account you need — in this case we’re creating an IRA. If you prefer personal assistance, consider choosing Unchained’s Concierge service on boardwhere a Bitcoin custodian will guide you through every step.
Step 3: Create your Unchained IRA – no setup or account fees for the first year!
Now it’s time to set up your IRA. With an Unchained IRA, you can save bitcoin in a tax-advantaged way while maintaining full control of your keys. There is no third party risk because you own the keys, ensuring that no one else can access your bitcoin.
Setting up an account is simple, there are no setup fees; Account fees do not start until the second yearAnd you can see the trading fees On our pricing page. Unchained’s IRA offers both traditional and Roth options, allowing you to choose the best option for your retirement strategy.
Step 4: Follow the self-service guide to set up the store
After setting up your account, it’s time to set up your multisig vault, which is one of the most secure ways to secure Bitcoin. Multisig requires more than one key to authorize a transaction, which mitigates the associated risks Trustee hack and exchangeOr bad business practices or individual mistakes.
You can set up this secure multisig configuration in less than an hour using Unchained’s Self-Service Onboarding. Simply follow the guide on diy.unchained.com To get started – If you are using two hardware wallets to create your vault, you will choose the lead custodial model.
Step 5: Roll over your existing 401k/IRA account
Next, you’ll need to fund your new IRA, and there are several ways to do this: an IRA rollover to an IRA, a 401(k) rollover to an IRA, or an annual contribution. The most common method is to roll money from your current 401(k) or IRA into a new Unchained IRA.
While this process may seem tedious — especially if your 401(k) administrator needs to issue you a physical check — it’s straightforward. Once your funds are received, Unchained will convert them to Bitcoin through our trading desk and deposit them into your IRA vault.
If you already own Bitcoin in another IRA, you can make an in-kind transfer to move your Bitcoin directly to Unchained without converting to cash first. If you want to learn more about how to fund your IRA, here we are Full knowledge base article So.
Step 6: Enjoy the tax-advantaged benefits of Bitcoin
Congratulations, your retirement savings are now secured in Bitcoin! Unchained offers a fixed annual fee. Starting in year 2, you’ll pay a fixed annual fee of $250 to your IRA.
Holding Bitcoin in a tax-advantaged account combines the inflation resistance of Bitcoin with the benefits of an IRA. Most importantly, you remain responsible for your Bitcoin, not the exchange or third party. If the upside is approaching as many suspect, an Unchained IRA could put you in a position to watch your retirement savings grow.
This article is provided for educational purposes only and should not be relied upon as tax or investment advice. Unchained makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to a tax or financial advisor of your choice. Data relating to market or other financial information is obtained from sources we believe to be reliable, but we do not guarantee or warrant the timeliness or accuracy of such information.