Pros and Cons of Holding Crypto in a 401(k)
— Accounts, Investors, Cryptocurrencies, Crypto, Pros, Retirement, Cons, 401k, Offer, Holding — 1 min read
Fidelity became the first major financial services firm to offer investors the chance to add cryptocurrency assets to their 401(k) retirement accounts. The central promise of cryptocurrencies is that they provide higher returns than the assets that are traditionally held in 401(K) accounts. However, even the most well-established cryptocurrencies, such as Bitcoin, have proven to be highly volatile. Fidelity now allows investors to add cryptocurrencies to their retirement accounts, letting retirement investors allocate up to a maximum of 20% of their nest eggs to Bitcoin. Advantages and disadvantages of holding crypto in 401K accounts are possible, but there are also potential advantages to holding crypto. If you are already trading cryptocurrencies, then doing your crypto trading inside a 401k may reduce your tax liability. Source