Bitcoin FAQ

Bitcoin FAQ

The concept of Bitcoin was first speculated in a paper published in 2009 by an author writing under the pseudonym Satoshi Nakamoto. Nakamoto left the project in late 2010, right when the Bitcoin community began to boom and elaborate on his or her initial concept.

Bitcoin is not a company, therefore it is not controlled by any individual owner. Bitcoin is a digital asset, and can also be understood as a peer-to-peer network.

Because there is no CEO of Bitcoin, it exists and is operated by the people and for the people. The security of the network is maintained by users, and all transactions are publicly logged utilizing Blockchain digital ledger technology.

Blockchain is a technology that utilizes a global network of computers to jointly record and log all Bitcoin transactions, for the digital currency’s protection and credibility.

Blockchain technology (the decentralized digital ledger that records Bitcoin transactions and logs them publicly where they can be simply verified) is so secure that the model is now being embraced by banks and financial institutions as well.

Existing IRAs, Roth IRAs, SEP IRAs, Simple IRAs, 403(b)s and 401(k)s are all eligible to roll over into CryptoWallet IRA accounts. Our CryptoWallet IRA specialists can help you roll over funds from any of these existing accounts into a new self-directed IRA capable of holding digital currencies while remaining IRS-compliant.

No. CryptoWallet will ensure that your IRA rollover is 100% IRS-compliant.

Bitcoins are bought and sold in 13,000 cities in 249 countries across the world, and counting.

Bitcoin is simply a virtual currency, so rather than paying for a product or service with cash, check, or credit card, a user pays on the Internet over a payment network. Some of the well-known businesses that accept Bitcoin include Amazon, Expedia, Target, CVS, Subway, and Whole Foods.

Like any IRA account, the funds inside are intended to be drawn upon after retirement age, which the IRS recognizes as 59 ½. Spending or withdrawing your funds before this age will result in early withdrawal penalties. Selling your funds is allowed, so long as those funds are used to reinvest in an IRA or are held in your BitGo wallet in a liquid position.

No, you cannot use cryptocurrencies that you have already purchased for your Bitcoin IRA. At this time, the IRS requires that investors buy the cryptocurrency they intend to store in their IRA with US dollars.

Yes, you can make additional Bitcoin contributions to your CryptoWallet IRA, subject to the IRS annual contribution limits.

CryptoWallet IRA utilizes BitGo encryption technology and Kingdom Trust’s IRA establishment and maintenance services to ensure the security of your cryptocurrency funds. With that said, a good deal of account security resides in CryptoWallet’s clients’ hands. Taking extra measures such as adding passcodes to your smartphone and not discussing your cryptocurrency accounts publicly, especially on social media, will serve as extra protective measures to keep digital funds safe. For more information on this, visit Keeping Your Bitcoin Transactions Safe.