Investments within a self-directed IRA can grow in a tax-advantaged environment, allowing you to build future wealth. Below are some frequently asked questions about investing in a self-directed IRA in Bitcoin, or other cryptocurrencies, and Equity Trust’s digital asset platform.
What is Digital Currency (or Cryptocurrency)?
A digital currency is designed to work as a medium of exchange.
To do this, it uses cryptography to secure and verify transactions as well as control the creation of new units of a currency.
What are potential benefits of using an IRA to invest in digital currency?
A possible benefit of investing digital currencies with an IRA includes the potential tax advantages of using a qualified retirement account.
What types of digital currencies are available on Equity Trust’s digital asset platform?
How do you get started on the Equity Trust digital asset platform?
Open and fund an Equity Trust account. You can open the account using our online application.
Complete the digital asset platform disclosure. It includes critical information about digital currency risks and associated fees.
Begin purchasing digital currency. You can begin buying and selling digital currency. Note: The platform does not allow users to use digital currency to purchase goods/services.
How long does it take to purchase and for a transaction to settle?
After your digital asset transaction is submitted through the Digital Asset Platform, the transaction will settle on the trade date plus one (“T+1”), or next day settlement.
How secure is my digital currency and where is it held?
Equity Trust’s digital asset platform has industry leading security protocols, including multi-factor authentication for platform access and multi-signature wallet access verification. Your digital currency will be held in a secure offline “cold storage” vault that is not connected to internet. We partnered with Vo1t, a digital asset custodian, who uses cybersecurity best practices to create a secure vault for your assets.
What is Equity Trust Company’s role in the process?
Equity Trust Company facilitates the purchase and sale of digital currencies.
During the sale process, Equity Trust ensures that the digital currencies requested to be sold are pulled from the secure vault (Vo1t), and sold with a digital currency liquidity provider (Genesis Global Trading) or exchange. Equity Trust receives the cash proceeds from the sale and places the funds into your IRA account.
What are the fees associated with Equity Trust’s digital asset platform?
Genesis does not charge a commission on any transaction. Rather, you will be quoted a spread to the index that is competitive with the market. The price quoted is net to the counterparty and there are no additional fees charged by Genesis.
Fill out the form below to discover more or call our digital team at 855-372-3289!