When it comes to investing, time and timing matters.

Some investors prefer to buy and hold it until they have to cash it out or retire. If you are that kind of an investor, CryptoIRA is for you. 

Some like timing the market. They buy and as soon as their assets increase in value, they sell. They make money quick and move on to the next. That’s active trading. 

Some like doing both. 

Whichever of the three you are, My Digital Money (MDM) offers you a way to do it in the most secure way possible. 

With MDM, you can open a CryptoIRA or actively trade. 

If you want to know the difference between the two, read on. 

What Is a CryptoIRA?

A CryptoIRA is a ‘common language’ terminology used to refer to your cryptocurrency investment in your Self-directed IRA. Yes, you can put cryptocurrency in your IRA. 

All you have to do is open a Self-Directed IRA. After the account is set up, you can invest in different assets including cryptocurrency. 

MDM is in partnership with Equity Trust. Equity Trust is a leading provider of self-directed IRAs, enabling investors to diversify their portfolios through alternative asset classes, including real estate, private equity, notes, and digital currency. Equity Trust has $28.7 billion in assets under custody. 

If you open an account with MDM, you can be assured that your Self-Directed IRA is in good hands. 

Generally, IRA investments are held for longer periods of time. It is, after all, a fund for retirement. 

A cryptoIRA is based on the principle that if you buy a good portfolio of cryptocurrencies and just leave them alone, the value should steadily increase.Think how those who bought Ethereum when it was just trading at $3 back in 2015. 

If you bought 1,000 Ethers then, you would be sitting on  $1.55M now. 

But you can’t buy and hold just any cryptocurrency. You should still make a point to do a good analysis on each investment and understand why you own it. No matter what strategy you use to invest, never invest in a cryptocurrency or other investment that you don’t understand.

What Is a Trade in Cash Strategy?

Some people prefer to buy cryptocurrencies and watch the price movement. Once they gain their target amount, they sell. 

These active cryptocurrency investors look at company fundamentals, trends, and market development but put a big emphasis on technical analysis.

Technical analysis is the use of charts and recent market volatility to find patterns and capitalize on those patterns. 

CryptoIRA vs Active Crypto Trading

CryptoIRA and Active Crypto Trading may serve the same purpose, to build wealth… but the strategies are different.  

CryptoIRA counts on long-term increase in value. Active Crypto Trading earns through short-term price changes. 

Neither is more secure than the other. It boils down to the actual cryptocurrency. 

Cryptocurrencies are volatile and with volatility comes big risks and big opportunities. 

MDM is here to make it as secure as possible for you. With our stop-loss feature, partnership with Equity Trust, and commitment to deliver relevant and balanced tips and updates on the market, you will have the tools you need to make better investment decisions.