Bitcoin may be on the cusp of a significant new bull market. Tuur Demeester from Adamant Research suggests in his article How to Position for the Bitcoin Boom that we might be entering the early phases of a multi-year bull run that could send bitcoin prices soaring into six figures.
“We believe that during this accumulation phase, bitcoin will fluctuate between $22,000 and $42,000, before a new bull market drives it well beyond $120,000,” Demeester stated.
Picture securing a hefty allocation of bitcoin before this bull run kicks off—an investment that could grow completely tax-free, funded by an old retirement account you may have overlooked!
Step 1: Acquire hardware wallets
The initial step is to get the necessary tools to safeguard your bitcoin. A hardware wallet enables you to store your bitcoin keys offline, granting you complete control over your assets.
Start by purchasing several hardware wallets, such as those offered by Trezor or Ledger. Unchained supports a variety of devices, including the Ledger Nano X, Trezor Model T, and Coldcard Mk4. To see the complete list of supported hardware wallets, visit this page.
For the best security, it’s advisable to buy directly from the manufacturer, but it’s also fine to purchase from a reputable third-party retailer like Best Buy. This is especially important in the context of multisig, which mitigates the risk of any single key becoming a single point of failure.
Make sure to secure at least two wallets—you’ll need both for setting up your Unchained IRA vault.
Step 2: Sign up on Unchained.com
Next, head over to Unchained and create your account. The process is straightforward: enter your name, email address, phone number, and a strong password. Unchained prioritizes your privacy.
Once your account has been created, select the type of account you require—here, we’re setting up an IRA account. If you prefer personalized guidance, consider Unchained’s Concierge Onboarding, where a bitcoin custody expert will assist you through every step.
Step 3: Establish your Unchained IRA account—with no setup or account fees for the first year!
It’s time to establish your IRA account. With an Unchained IRA, you can save bitcoin in a tax-advantaged manner while retaining complete control of your keys. Since you hold the keys, there’s no third-party risk—meaning nobody else can access your bitcoin.
The registration process is simple—there are no setup fees; account fees only begin in the second year, and you can review trading fees on our pricing page. Unchained’s IRA provides both Traditional and Roth options, letting you choose what works best for your retirement strategy.
Step 4: Follow the Self-Service guide for vault configuration
After your account setup, the next step is to establish your multisig vault—one of the most secure methods to safeguard bitcoin. Multisig requires multiple keys to authorize a transaction, which reduces the risks linked with custodian and exchange hacks, poor business practices, or individual errors.
You can create this secure multisig setup in less than an hour by using Unchained’s Self-Service Onboarding. Follow the guide at diy.unchained.com to get started—if you’re using two hardware wallets to build your vault, choose the Lead custody model.
Step 5: Transfer your existing 401k/IRA
You’ll need to fund your new IRA next, which can be done in several ways: an IRA-to-IRA transfer, a 401(k)-to-IRA rollover, or an annual contribution. The most typical approach is rolling over funds from an existing 401(k) or IRA into your new Unchained IRA.
Although this process can seem tedious—especially if your 401(k) administrator has to send you a physical check—it is straightforward. Once you receive your funds, Unchained will convert them to bitcoin through our trading desk and deposit them into your IRA vault.
If you already have bitcoin in another IRA, you can perform an in-kind transfer to move your bitcoin directly to Unchained without converting to cash first. For more information on funding your IRA, we have a comprehensive Knowledge Base article available.
Step 6: Reap the rewards of tax-advantaged bitcoin
Congratulations—your retirement funds are now secured in bitcoin! Unchained charges flat annual fees. Starting in year two, you’ll incur a flat $250 annual fee for maintaining your IRA account.
Holding bitcoin in a tax-advantaged account combines the inflation resistance of bitcoin with the benefits provided by an IRA. Most importantly, you retain control over your bitcoin—there’s no dependence on an exchange or a third party. If, as many believe, a bull run is imminent, the Unchained IRA could position you to witness your retirement savings flourish.
This article is intended for educational purposes only and should not be construed as tax or investment advice. Unchained does not make any representations about the tax implications or investment suitability of any structure described herein, and all such inquiries should be directed to a tax or financial advisor of your choice. Statements about market or financial information are derived from sources we deem reliable, but we do not guarantee the timeliness or accuracy of such information.
