Holding Crypto in your IRA

Feb 16, 2022

Harnessing the Future of Crypto

Cryptocurrencies have exploded in popularity over the last few years and are now into the mainstream. Are you a believer in the long-term prospects of cryptocurrencies? Do you want to potentially invest your crypto in a tax-sheltered vehicle to save for retirement?

If your answer to those questions is yes, you may want to consider opening a crypto-enabled TradeStation IRA. Many investors do not know how IRAs containing crypto are structured or are blind to the fact that they exist in the first place. Long-term crypto bulls planning for retirement should be encouraged because crypto-enabled IRAs are structured in the same manner as IRAs for other asset classes. Meaning you have the flexibility to choose between a Roth or Traditional IRA while reaping the benefits of contributing and investing to a tax-advantaged investment vehicle so long as you qualify.

Opening a Crypto-Enabled IRA with TradeStation

For those investors interested in opening a holding crypto in a TradeStation IRA, the steps are straightforward. Simply click the link at the bottom of this article to begin the account opening process. Regardless of whether you are a new or existing client, opening an IRA containing crypto requires you to go through a specific account opening process since IRA accounts are separate from other investment accounts.

How can I Fund my IRA?

Once your account has been opened, you have your choice of several different funding methods. Traditional funding methods such as smart transfers, checks, wires, or electronic (ACAT) transfers are available. You also have the option to roll-over an existing crypto IRA from another institution.

Trade, Learn and Build Your Portfolio with TradeStation Crypto

After you’ve opened your TradeStation Crypto IRA, you can buy, sell, and hold some of the most liquid cryptocurrencies and stable coins including, Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and USDC. TradeStation Crypto also offers trading on several cross-pairs.

Why TradeStation Crypto?

TradeStation Crypto has leveraged over 35 years of experience (gained from our sister company TradeStation), to bring you lightning-fast trade execution, deep-liquidity, an array of technical indicators, and client support which is just a phone call away. Eliminate the need to fumble around during tax season by taking advantage of easy tax reporting through Equity Trust. Gain access to our award-winning platform on our desktop platform or mobile app if you wish to monitor your account on the go.

Choose experience. Choose powerful tools and execution. Choose reliability you can trust.

Open a TradeStation Crypto IRA Account

Important Information

Equities, equity options, and commodity futures products and services are offered by TradeStation Securities, Inc. Cryptocurrency and digital asset products and services are offered by TradeStation Crypto, Inc. The assets in your TradeStation IRA accounts are assets of a custodial IRA account established with a third-party IRA custodian selected by you.

TradeStation Securities, Inc. and TradeStation Crypto, Inc., are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under theTradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.

Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.

Investing in securities also involves risks. Past performance is no guarantee of future results. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.

Taxes

Any potential tax advantages or benefits will depend on your circumstances. The information provided here is for information purposes only, it is not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations and does not resolve any tax issues in your favor. Refer to IRS Publication 590, Individual Retirement Accounts for additional information on IRAs in general and consult your tax professional about your individual tax situation.

Discover the advantages of trading Crypto with TradeStation

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Important Information

DISCLOSURES: Futures’ trading is not suitable for all investors and involves the risk of loss. The risk of loss in futures can be substantial. You should, therefore, carefully consider whether such trading is suitable for your financial condition. No statement within this webpage should be construed as a recommendation to buy or sell a futures contract or as investment advice.

BITCOIN DIGITAL ASSET DISCLOSURE: The Cboe Futures Exchange LLC (CFE) and the CME Group, Inc. (CME) have launched, or will soon launch, trading in Bitcoin futures. The CFE futures contracts are cash-settled contracts based on the Gemini’s auction price for Bitcoin, denominated in U.S. dollars. The CME’s futures contracts are, or will be, cash-settled contracts based on the CME CF Bitcoin Reference Rate (BRR) and the CME CF Bitcoin Real Time Index (BRTI). The specifications for each Bitcoin futures contract, including margin requirements and price fluctuation limits, can be found on the CFE and CME websites. TradeStation reserves the right to impose more restrictive limits which may, at TradeStation’s discretion, be revised from time to time. TradeStation also has the contractual right to liquidate all or any part of your position(s) through any means available, without prior notice to you. The regular risks associated with trading commodity futures contracts also apply to the trading of Bitcoin futures.
These risks can be viewed at the following link: www.tradestation.com/important-information/.

Customers choosing to trade Bitcoin futures should consider additional significant risks including, but not limited to: (a) Bitcoin futures contracts have not previously traded on a U.S. regulated futures exchange and as such, there is no futures trading history in this product; (b)The price of the underlying Bitcoin and the indexes upon which the futures contracts are based are highly volatile and unpredictable based on many factors; (c) Since a limited number of futures commissions merchants may offer trading in the Bitcoin futures contracts, there might be limited volume which might impact market efficiencies and price movements; and (d) The risk of loss can be substantial and could result in a customer losing more than the initial or maintenance margin requirement. As such, each customer should conduct his or her own due diligence prior to make a decision to trade in these products. See link below from the National Futures Association for more information. www.nfa.futures.org/investors/investor-advisory.html

FORKING: A hard fork in a blockchain is a permanent divergence from the previous version of a blockchain, and nodes running previous versions will no longer be accepted by the newest version. This essentially creates a fork in the blockchain, one path which follows the new, upgraded blockchain, and one path which continues along the old path. Generally, after a short period of time, those on the old chain will realize that their version of the blockchain is outdated or irrelevant and quickly upgrade to the latest version. In the simplest terms and as it relates to Bitcoin futures, a hard fork is similar to a spinoff into a new instrument. CME is developing a hard fork policy for capturing cash market exposures in response to viable forks. The policy may involve cash adjustments to position holders or listing additional related futures that are also issued to position holders. CFE is developing a hard fork policy for capturing cash market exposures in response to viable forks. The CFE policy is not finalized.

Additionally, the Commodity Futures Trading Commission (“CFTC”) has made available a Virtual Currency Resource Web Page designed to educate and inform the public about this topic and its risks. See the link below for further information from the CFTC.

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