Bitcoin could be on the cusp of a major new bull run. Said Tuur Demeester of Adamant Research in his publication How to Position for the Bitcoin BoomWe may be in the early stages of another multi-year bull market that could push the bitcoin price into six figures.
“During this accumulation phase, we expect Bitcoin to trade in a range of $22,000 to $42,000 until another multi-year bull market pushes it well above $120,000,” Demeester noted.
Imagine securing a substantial allocation of Bitcoin before this bull run begins – an allocation that could be completely tax-free, funded by an old retirement account that you may have completely forgotten about!
Step 1: Buy hardware wallets
The first step is to get the tools you need to ensure your bitcoin is safe. A hardware wallet allows you to store your bitcoin keys offline, giving you complete control over your funds.
Start by purchasing a few hardware wallets, such as those offered by Trezor or Ledger. Unchained currently supports a range of devices including the Ledger Nano X, Trezor Model T and Coldcard Mk4. Check out the full list of hardware wallets that Unchained supports.
For optimal safety, it is recommended to purchase directly from the manufacturer, but purchasing from a trusted third-party retailer, such as Best Buy, is also acceptable. This is especially true in the context of multisig, where each individual key is eliminated as a single point of failure.
Make sure you purchase at least two wallets. You’ll need both to set up your Unchained IRA vault.
Step 2: Create an account on Unchained.com
Then go to Unchained and create an account. The process is simple: provide your name, email address and phone number and create a strong password. Unchained takes your privacy seriously.
Once your account has been created, select the type of account you need. In this case, we will create an IRA account. If you prefer personalized guidance, consider choosing Unchained Concierge onboardingwhere a bitcoin custody expert will guide you every step of the way.
Step 3: Create your Unchained IRA account, with no setup or account fees for the first year!
Now it’s time to set up your IRA account. An Unchained IRA allows you to save tax-efficient bitcoin while maintaining full control of your keys. There is no third party risk because you hold the keys so no one else can access your bitcoin.
Setting up an account is simple: there are no setup fees, account fees don’t start until the second yearand you can see the trading costs on our prices page. Unchained’s IRA offers both traditional and Roth options, so you can choose the option that best suits your retirement strategy.
Step 4: Follow the Self-Service Guide to set up the safe
Once you’ve set up your account, it’s time to set up your multisig vault: one of the most secure ways to secure bitcoin. Multisig requires more than one key to authorize a transaction, limiting the risks associated with it custodian and exchange hacksbad business practices or individual mistakes.
You can set up this secure multisig setup in less than an hour using Unchained’s Self-Service Onboarding. Just follow the guide diy.unchained.com To get started: If you’re using two hardware wallets to build your vault, choose the Lead Custody model.
Step 5: Convert your existing 401k/IRA
Next, you’ll need to fund your new IRA, and there are a few ways to do this: an IRA-to-IRA transfer, a 401(k)-to-IRA rollover, or an annual contribution. The most common method is to transfer funds from an existing 401(k) or IRA to your new Unchained IRA.
While this process can be tedious, especially if your 401(k) administrator has to give you a physical check, it is simple. Once you receive your money, Unchained will convert it into Bitcoin through our trading desk and deposit it into your IRA vault.
If you already have bitcoin in another IRA, you can make an in-kind transfer to move your bitcoin directly to Unchained without converting it to cash first. If you’d like to learn more about how to fund your IRA, we have a full Knowledge Base article before that.
Step 6: Enjoy the benefits of tax-advantaged bitcoin
Congratulations: your retirement savings is now secured in bitcoin! Unchained offers fixed annual fees. Starting in year two, you pay a flat annual fee of $250 for your IRA account.
Holding bitcoin in a tax-advantaged account combines the inflation resistance of bitcoin with the benefits of an IRA. The most important thing is that you remain in control of your bitcoin, and not an exchange or a third party. If the bull run approaches, as many suspect, the Unchained IRA could put you in a position to see your retirement savings grow.
This article is for educational purposes only and should not be relied upon as tax or investment advice. Unchained makes no representations regarding the tax consequences or investment suitability of any structure described herein, and all such questions should be directed to a tax or financial advisor of your choice. Statements regarding market or other financial information are obtained from sources we believe to be reliable, but we do not guarantee the currency or accuracy of this information.