Excited about investing in cryptocurrency and digital assets, but worried about the tax-treatment for any gains or losses? Well, you are certainly not alone in your concerns; and Rocket Dollar offers one of the great tax-advantaged ways to invest in the space, without having to navigate the challenging tax environment surrounding the asset class.
Purchasing cryptocurrency directly through a centralized exchange or market maker provides the store of value function that is so exciting with digital assets. There are also a number of managed funds and structures that offer a great way to gain exposure to the asset class, without the responsibility that comes with some of the other conduits.
The growth of the space has facilitated the launch of many promising startups. Investing in these companies’ blockchain-enabled businesses provides access to the growth potential in a more approachable format for many angel and early-stage investors.
These methods each have their strengths and weaknesses. With some offering very direct, but transactionally complicated investments. To those, that may be very accessible, but not 100% correlated to cryptocurrency as a store of value—i.e. owning Bitcoin directly.
At the end of the day, there are tons of amazing ways to unlock your retirement dollars with a crypto or digital asset investment. Capturing any of the high return opportunities within a tax-advantaged account like a cryptocurrency IRA is a great place to start. From there you can assess your own personal investment goals and hone in on the right investment tool for you.
The good news is that the market is becoming more mature and robust each day. Advances in regulatory and market structures are helping grow the number of interesting and exciting options available to investors. We encourage to you learn and consider the space for your portfolio if only to build an understanding and comfort level for future opportunities.