Last Updated on May 19, 2022 by Hub Blogging
Bitcoin has been in the news a lot lately, and for good reason. The value of this digital currency has been on the rise, and many people are now looking to invest in it. If you’re one of those people, you may be wondering how you can buy and invest in Bitcoin with your SMSF.
In this article, we will walk you through the process of how cryptocurrency investment in SMSF works by discussing how to buy and invest in Bitcoin.
Buying and Investing
Before anything else, you need to open a Bitcoin wallet. There are many different wallets available, so you can choose one that’s right for you. Once you have created your account and set up your wallet, you will need to purchase some Bitcoins. You can do this by using a credit card, bank transfer or even cash!
Once you have your Bitcoins, you can either hold onto them as an investment or spend them on goods and services that accept this form of payment. Some popular businesses that accept Bitcoin include Expedia, Overstock and Microsoft.
If you’re looking to invest in Bitcoin for the long term, we recommend storing your coins in a cold storage wallet. These wallets are not connected to the internet and are therefore much less susceptible to hacks.
A Few Things to Keep in Mind
Is crypto a cash investment?
While Bitcoins are digital, they can still be used to purchase goods and services just like cash. However, there are some key differences that you need to be fully aware of. For one, Bitcoins are not regulated by any government or financial institution. This means that their value is completely dependent on supply and demand. Additionally, bitcoins are not backed by any physical asset, so their value can fluctuate quite a bit.
Before investing in Bitcoin, it’s vital to do your research and make sure that you understand any risks involved. Bitcoin is a very volatile asset and its value can go up or down quite quickly. As a rule of thumb, you should never invest more than what you’re willing to lose.
SMSF stands for Self-Managed Super Fund
An SMSF is a superannuation fund where the members are also the trustees. This means that they have total control over how the fund is invested and managed.
An SMSF can invest in a wide range of assets, including shares, property and cash. However, there are certain restrictions in place regarding what an SMSF can invest in. For example, an SMSF cannot borrow money to purchase an asset.
Is it necessary to seek professional advice before investing?
If you’re thinking about investing in bitcoin with your SMSF, it’s important to seek professional advice first. This is because crypto assets are a relatively new asset class and there is still a lot of uncertainty surrounding them.
The process of buying and investing in Bitcoin with your SMSF is relatively simple once you understand the basics. Just be sure that you do your research and try to understand the risks involved before getting started!