Should you add Bitcoin to Your 401(k) Plan?

your Digital Frontier issue [Digital Frontier] Should you add Bitcoin to Your 401(k) Plan? [By Andrew Packer] By Andrew Packer Wednesday, May 4, 2022 Last week saw a MASSIVE announcement for the crypto space… Fidelity stated that they would soon allow select 401(k) plans to offer Bitcoin (BTC-USD) directly. That would mean allowing Bitcoin’s long-term trend higher to compound tax free in your portfolio. While that sounds great on the surface… there are actually a few dangers ahead with that concept… [Go here to discover the top 5 cryptos to BUY before May 15.]( First, the plan has some regulatory hurdles to clear. I see those hurdles being cleared in only a matter of time. If not now, then in a few months to a year. The real issue comes down to one of the fundamental reasons why many have flocked to Bitcoin in the first place. And that comes down to the fact that the king of crypto doesn’t require an intermediary. You can buy Bitcoin on an exchange like Binance or Kraken of course… …but then you can move it to your own digital wallet. That could be done via software, or via a hardware wallet. This goes to a key principle for the Bitcoin community, best summed up in the phrase: “not your keys, not your coins.” If you don’t control what you own… someone else does. In the case of Fidelity and their 401(k) program, they’d be the custodian of your Bitcoin. If they decided to lock you out of your account… or if the government decided to go after it for some reason (donate to any truckers recently?)… you’d be out of luck – and your crypto. For “paper” assets like stocks, this can be a problem too. During last year’s runup in GameStop (NYSE: GME), brokerages turned off the buy button. That prevented investors from buying shares, and led to the collapse in price. Today, many GameStop believers are buying shares on exchange, then registering them with Computershare – effectively doing what Bitcoiners do when they take it off exchange. With fewer and fewer shares in circulation… the chance of brokerages and funds manipulating the price will become more and more difficult. The point is… no matter what the asset class… if you don’t directly own it, you can only benefit from the upside… and only when doing so doesn’t hurt someone more powerful or politically connected with you. That’s why I moved most of my Bitcoin onto a hardware wallet. For smaller cryptos, it’s a different story. Bitcoin is unique in how it’s become digital money. But [other cryptos are more like small cap stocks](. You can benefit from their appreciation without having to move them off an exchange. Leaving them on an exchange offers better liquidity. And the profits of smaller cryptos can beat Bitcoin in the short-term. Especially when a rally kicks off. And even after taxes, you’ll still do better than the returns of a 401(k) plan. Now is the time to start building your portfolio of next generation cryptocurrencies. I like to call these Crypto Moonshots. And I’m prepared to show you exactly HOW to spot the next big crypto winner – before it takes off. [Go here ASAP – and I’ll show you how.]( Regards, [Andrew Packer] Andrew Packer [VISIT WYATTRESEARCH.COM]( [Take a 7 day break from these emails]( [Unsubscribe from these types of emails]( [Manage your email preferences]( [Wyatt Investment Research] Disclaimer & Important Information [Wyatt Investment Research (“WIR”)]( owns and publishes the website WyattResearch.com, other web sites, and, through its subscription services, various investment newsletters, trade alerts, and other investment-related educational materials. Those publications are informational in nature – WIR is not your financial adviser and does not provide any individualized investment advice to you. 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