Coinbase has teamed up with qualified crypto custodian Kingdom Trust and alternative investments company Regal Assets to offer customers the ability to create insured cryptocurrency-based investor retirement accounts (IRAs).
The main benefit of Coinbase IRAs is that the crypto cannot be lost or hacked, making them a stress-free way of holding crypto for a long time period such as decades. Each account comes with $200 million of insurance from Lloyd’s of London, which is apparently the biggest insurance company in the world.
Customers can use Coinbase to transfer their previous IRA or 401(K) retirement accounts or can use cash to open up crypto IRAs outside of their regular retirement plans.
A wide variety of cryptocurrencies are available for these crypto IRAs, including major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), and a multitude of other cryptocurrencies including Ripple (XRP), Stellar (XLM), EOS, Tezos (XTZ), Zilliqa (ZIL), Algorland (ALGO), Basic Attention Token (BAT), Bitcoin Cash (BCH), Bitcoin SV (BSV), Civic (CVC), the DAI stablecoin, DASH, District0x (DNT), Ethereum Classic (ETC), Golem (GNT), Chainlink (LINK), Loom Network (LOOM), Decentraland (MANA), Maker (MKR), Augur (REP), the USDC stablecoin, Zcash (ZEC), and 0x (ZRX).
That being said, investing in crypto for retirement can involve holding coins for decades, and this is much different than regular crypto trading, where trades are usually done a daily or weekly basis, and trades done on a monthly or yearly basis can be considered long term.
People who are going to be putting their retirement in crypto need to be especially wary of putting significant amounts of their retirement into medium to small-cap coins since there is no guarantee the projects behind them will survive. The best choice for a crypto IRA is likely Bitcoin (BTC).
Even with Bitcoin (BTC) one should follow the golden rule of investing, which applies to any investment regardless of asset type, and that is an investor should not invest more than they can afford to lose.