An Ethereum IRA is a financial product much like the conventional IRAs you’re used to hearing about through your employer’s benefits plan. In addition to building wealth over time by investing your money in stocks and bonds, however, the door is opened to alternative assets. Ethereum and cryptocurrencies are considered alternative assets by IRA standards because a conventional IRA will not include any
Why are people interested in Ethereum IRAs? They allow you to get involved in alternative currencies without needing to invest the time and effort into learning the ropes. A knowledgeable advisor manages the fund while you reap the benefits.
The funds go beyond investing and holding Ether. You can split your interests between crypto, metals, debt assets, real-estate investment trusts, angel investments and more for standard diversification purposes.
Ethereum IRAs can also take on all the forms of conventional funds. You can put your money into a traditional or ROTH IRA, or a SEP or SIMPLE IRA if that works better with your portfolio. Like any IRA, the money is tax deferred until you withdraw the funds during retirement. Early withdrawals are penalized as well.