You might have heard about people investing in crypto through their self-managed superannuation funds (SMSF). Is this a good idea? In this article, we will discuss the pros and cons of investing in crypto through your SMSF. We will also look at some of the best ways to do this. By the end of this article, you will know whether or not this is a good option for you.
For those who aren’t in the know, what is SMSF?
SMSF is a superannuation fund that you manage yourself. This means that you have control over how your money is invested. You can invest in a wide range of assets, including property, shares and cash. SMSFs are a popular way to save for retirement. They offer many benefits, such as flexibility and control. Let’s talk more about the advantages in the next section.
Advantages of investing in crypto through your SMSF
There are a few advantages to investing in SMSF crypto. One of these is that you can diversify your portfolio. Crypto is a new and emerging asset class. By investing in crypto, you can add another layer of diversity to your portfolio. This will help to reduce risk and could lead to higher returns over the long term.
Another advantage of investing in crypto through your SMSF is that you have more control over your investments. With most superannuation funds, you have little say over how your money is invested. However, with an SMSF, you have complete control over your investments. This means that you can choose to invest in whichever assets you like, including crypto!
Disadvantages of investing in crypto through your SMSF
There are also a few disadvantages to investing in crypto through your SMSF. One of these is that it can be a risky investment (like many other types of investment). Crypto prices are highly volatile; they can go up or down a lot in value in a short space of time. This means that you could lose money if you invest in crypto. However, this risk can be mitigated by investing only a small amount of your total portfolio in crypto.
Another disadvantage of investing in crypto through your SMSF is that it can be difficult to find the right platform to do so. There are many different exchanges and platforms out there, and not all of them are suitable for SMSF investors. This is because some platforms don’t allow you to hold your investments in an SMSF. And then there are highly reliable platforms like Bamboo, which enables you to invest in crypto through your SMSF.
So, is it a good idea to invest in SMSF crypto?
We think so! While there are some risks involved, the potential rewards outweigh these risks. If you’re thinking about investing in crypto through your SMSF, we recommend doing some research, getting a trusted crypto investment app and speaking to a financial advisor to get started.
A few reminders before you invest in crypto through your SMSF:
If you are thinking about investing in SMSF crypto, there are a few things that you should keep in mind. Firstly, make sure that you understand the risks involved. Secondly, ensure that your custodian will allow you to do this. And finally, consider diversifying your portfolio by investing in other asset classes.
What are your thoughts on investing in SMSF crypto? Let us know in the comments below!