Individuals typically do not need to worry about capital gains taxes
while trading in an IRA. For crypto investors, this could be an
attractive feature.
Cryptocurrency individual retirement accounts (IRA) provider iTrustCapital revealed Wednesday that the total transaction volume on its platform had surpassed $5 billion, marking a 60% increase in nine months.
As
told by iTrustCapital, many of its users, ranging from millennials to
working professionals to senior citizens, are trading cryptocurrencies
for the first time. The firm only charges a 1% buy-sell fee on
cryptocurrency transactions. There are no monthly fees, and investors
only need to deposit $1,000 to open an account. Through the platform,
users can trade over 25 cryptocurrencies 24 hours a day, seven days a
week. It also provides insurance coverage for deposits in the amount of $320 million, as per an agreement with Coinbase Custody.
In
the United States, IRAs enable individuals to save for retirement
through tax-free capital accumulation or on a tax-deferred basis. Those
with IRAs do not need to pay taxes on asset capital gains held within
these accounts but may need to pay taxes on withdrawals when they reach
retirement age, depending on account type. Early withdrawals are
permitted with a 10% penalty, though this may be waived in certain
circumstances, such as when using funds to pay for college. Since
iTrustCapital's inception four years prior, the firm has attracted more
than 35,000 clients with its crypto IRAs.
Related: Crypto IRA iTrustCapital raises $125M, pushes valuation over $1B
Cointelegraph previously reported that more than one-quarter of the surveyed U.S. millennials
plan to use cryptocurrencies to fund their retirement. Some investors
have observed that one doesn't have to pay the same amount of taxes when
buying and selling crypto in retirement accounts
compared with traditional trading accounts. This perceived advantage
could attract more crypto investors to retirement plans such as IRAs.
source link : https://cointelegraph.com/news/itrustcapital-surpasses-5b-in-crypto-ira-transactions
