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Thursday, December 1, 2022

Your Guide to Buying and Selling Crypto With Your SMSF

If you’re an Australian with a self-managed super fund (SMSF), you may be wondering if it’s possible to invest in cryptocurrency. The answer is yes—SMSFs can buy and sell crypto just like any other investment. 

In this blog post, we’ll give you a guide to buying and selling crypto using your SMSF. We’ll also discuss the SMSF crypto relationship and explain why now may be a good time to invest in crypto.

For those who aren’t in the know, what exactly is SMSF?

SMSFs are a type of superannuation fund that is managed by the members themselves. This means that SMSF members have control over how their money is invested. Cryptocurrency is a digital asset that can be used as a form of investment. Bitcoin, Ethereum and Litecoin are all examples of cryptocurrency.

Benefits of crypto to SMSF investors

Crypto offers a number of benefits for SMSF investors. For starters, crypto is a 24/hour market, which means you can buy and sell at any time of day or night. Secondly, crypto is not subject to the same rules and regulations as other investments like stocks and shares. This makes it an attractive option for those looking for more freedom when it comes to investing. Finally, crypto is a relatively new asset class, which means there is still potential for growth.

What’s the relationship between SMSF and crypto?

SMSFs are able to invest in world’s best crypto just like any other asset class. However, there are a few things to keep in mind when investing in crypto using your SMSF. Firstly, you’ll need to make sure that your SMSF is compliant with the rules and regulations set by the Australian Taxation Office (ATO). 

Secondly, you’ll need to make sure that you’re comfortable with the risks involved. Crypto is a volatile market, which means prices can go up and down very quickly. That’s why you should only invest what you are comfortable losing.

Why now might be a good time to invest in crypto

The global economy is currently facing uncertain times due to the COVID-19 pandemic. This has led to a lot of volatility in traditional markets like stocks and shares. However, cryptocurrency has been relatively stable during this period. In fact, Bitcoin’s price has actually increased since the start of the pandemic. This makes now a good time to buy crypto if you’re looking for an investment that will weather the storm.

How to buy and sell crypto using your SMSF

Now that we’ve discussed some of the benefits of investing in cryptocurrency, let’s take a look at how you can actually do it. If you want to buy crypto using your SMSF, you’ll need to set up a self-managed super fund account with a broker that offers cryptocurrency trading. Once you’ve set up your account, you can start buying and selling crypto just like any other asset.

When it comes to selling crypto, you can either sell it back to the broker or exchange it for another currency. Hopefully this blog post has given you a better understanding of SMSFs and cryptocurrency, and how you can buy and sell crypto using your SMSF. 

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