- Its uncorrelated to other markets and assets
- It is the hottest investment now, with nearly 11 years of market history
- It is a hedge against market uncertainty and a store of value and exchange investment
Bitcoin, Ethereum and Ripple are some of the most famous digital or crypto currencies in the world. This emerging asset class is generating a lot of interest due to the following beneficial characteristics
BITCOIN HISTORICAL PERFORMANCE
“Bitcoin has the potential to be comparable to the value of gold…It is a fantastic hedge and store of value against autocratic regimes and banking infrastructure that is corrosive to how the world needs to work properly”
HOW DO I INVEST IN BITCOINS AND CRYPTO CURRENCIES WITH A SUPER FUND
WHEN INVESTING IN BITCOIN, OR CRYPTO OR DIGITAL CURRENCIES VIA YOUR SMSF, YOU WILL NEED TO CHECK THE FOLLOWING
- Are your Bitcoin and Crypto assets purchased in the name of your SMSF?
- Does your SMSF deed place restrictions on investing in crypto investments?
- Does your investment strategy identify your crypto and bitcoin investments?
- Are your Crypto, bitcoin assets stored in a secure wallet and in an insured independent vault?
- Are you ‘shaping’? moving from one coin to another?
WHAT ARE THE BEST SMSF BITCOIN EXCHANGES
These are two exchanges that recognise an SMSF account and are easy to deal with
- Cointree – offers 100 coins Fees: 0.90% – 0.25%
- Independent Reserve – offers 10 coins – Fees: 0.50% – 0.05%
- BTC Markets – offers 7 coins – Fees: 0.85% -0.22%
Whilst there is a greater choice of crypto exchanges available to individuals, the options for an SMSF are more limited The above exchanges have robust processes for SMSF accounts. Trading Fees: range from 0.50% – 1%
SUITABLE SMSF CRYPTO WALLETS
There are two types of crypto or bitcoin wallets
- Software wallets like – Copay & Exodus
- Hardware wallets like the Ledger Nano S & Trezor
For SMSF holdings, only a hardware wallet will be compliant with super laws as these wallets can be purchased by the SMSF directly, where as software wallets do not separate companies and trusts as the owner of assets.
WHAT TYPES OF CRYPTO ACTIVITIES ARE YOU UNDERTAKING IN YOUR SMSF
- Are you investing – Holding ? buying and holding
- Are you trading – frequent trading into different coins
- Are you mining in your SMSF ?
- Are you staking in your SMSF ?
- You should check the tax implications for all of these types of crypto activities in an SMSF
END OF YEAR COMPLIANCE REQUIREMENTS
- Provide a valuation statement of all holdings – Provided for My SMSF Clients
- Provide buy/sell receipts or contract notes
- Provider receipts for your storage vault and wallet purchase
Tax Treatment of Bitcoins and Crypto Currency
- If you sell your bitcoins or Altcoins and convert to Australian dollars, you will be subject to capital gains tax,
- If an SMSF member is in pension phase and they sell their crypto assets, they would not attract capital gains tax, based on the current exemptions for pension members under the super laws.
Why Choose My SMSF for your Bitcoin investments in a SMSF?
- Certified Bitcoin Professional
- Our auditors are conversant with Bitcoin investing in a SMSF
- We offer the cheapest SMSF Bitcoin Administration service in the country
- We can assist with SMSF Bitcoin education services and cheap, secure compliant storage solutions
Warning: Seek Financial, Legal and Tax advice before investing in crypto currencies
- SMSF Setup $799 with a company trustee
- SMSF Annual Administration $1,100 (Accounting +Auditing )
- SMSF and Bitcoin Education
Please Note: Our Service is an ‘Execution Only Service’ we do not provide advice on crypto investments
Cointree has been operating since 2013 With 65,000+ members and over $100 million worth of lifelong successful transactions. They pride themselves in providing a Quick, Simple and Secure Crypto Exchange service.You can Buy, Sell, Pay bills( not in super) Exchange, Grow and Hodl.