Whilst the rise of Bitcoin may be one of the world’s worst kept secrets, its evolution into a genuine asset group has opened up investment opportunities for people from all walks of life.
In 2014, the Australian Taxation Office (ATO) acknowledged the rise of Bitcoin and other cryptocurrencies not as a currency, but as a capital gain asset, taxable at a rate of only 15%.
This then opened the door for owners of self-managed super funds (SMSF) to invest and transact in cryptocurrency. Now, many companies like New Brighton Capital offer their services to those looking to set up an SMSF by assisting with things like accounting admin, tax returns and audits.
So, if you’re thinking of diversifying your superannuation portfolio by getting on board the crypto bandwagon, but you’re not quite sure which way to turn, this article is for you.
We’re going to take a closer look at five platforms that allow you to hold your cryptocurrency and perform trading with your superannuation funds and give you the lowdown on the pros and cons of each of them.
Important to note: Some of these platforms such as Binance and Swyftx just allow you to have dedicated accounts for your super. But they don’t help you set up the SMSF and they do not do the administration of the fund. This is managed by companies such as New Brighton Capital.
1. New Brighton Capital Super Fund Management
New Brighton Capital offers a streamlined online service to help you set up your SMSF in no time at all. They offer a free consultation service and a competitive set up fee of $1,600 which will be reimbursed once your SMSF is established, which can be in as little as two weeks. After you’ve followed their 10 step guide to setting up your own SMSF, you can focus on managing your superannuation portfolio and trading in crypto.
“As long as you are comfortable making the investment decisions, New Brighton Capital looks after the rest. As long as you know where you want to invested, we really can help you with the rest.”– New Brighton Capital CEO, Mike White.
Need help? Speak with Cryptocurrency Superannuation Expert at New Brighton Capital. Book a free 20min consultation.
2. Swyftx Dedicated Account For Your Super Fund
Swyftx prides itself on being Australia’s most progressive cryptocurrency exchange platform. Swyftx burst onto the scene in 2017 and now has over 60,000 users taking advantage of their low fees and non-inflated market prices.
After teaming up with New Brighton Capital towards the end of 2020, Swyftx now allows SMSF eligible investors to use its exchange platform and trade in up to 200 cryptocurrencies including Bitcoin and Ethereum as well as stable currency like USD coin.
As part of the pair’s partnership, Swyftx are also currently offering $250 worth of cryptocurrency credit for those who set up a new SMSF with New Brighton Capital.
3. Binance Dedicated Account For Your Super Fund
Binance is the world’s largest crypto exchange and through creating a corporate Binance Australia account, you can trade cryptocurrency as an SMSF.
Because of the company’s size, setting up an SMSF with Binance gives you huge flexibility, with access to trading in more than 740 cryptocurrencies.
Binance also has a helpful set of basic Super outlines that will help show you how to set up an SMSF in the absence of a third party consultancy firm like New Brighton Capital.
4. NGS Crypto Dedicated Account For Your Super Fund
Nextgen Systems (NGS Crypto) is an international blockchain mining company which delivers the best fusion of encrypted currency investing. Unlike the other crypto platforms, NGS Crypto provides a digital asset mining service which means you don’t have to be a blockchain expert to invest in cryptocurrencies with them.
NGS supports the use of SMSFs to trade in crypto and offers a $0 up-front fee to transfer your superannuation across, potentially saving thousands of dollars. With NGS, all returns are paid daily in Bitcoin and after securing an affiliate partnership with one of Australia’s biggest financial wealth analyst companies, you will also have access to sound financial advice.
5. BTC Markets Dedicated Account For Your Super Fund
BTC Markets are Australia’s largest and most trusted digital asset exchange and their platform supports SMSF investment. Despite having a smaller selection of cryptocurrencies to trade in, BTC offers great liquidity across markets including Bitcoin, Ethereum and XRP.
Since being founded in 2013, the Australian owned and operated company has been at the centre of the crypto boom, with over $10.5 billion AUD traded on the platform in that time.
BTC also offers a helpful KPMG tax reporting feature for annual audit preparation and a personalised service for larger trades.
Choosing your Bitcoin Super Fund
In summary, the nature of the ATO’s stance on cryptocurrency means that Australia provides a somewhat lucrative haven for those seeking exposure to Bitcoin and other digital assets.
By setting up a SMSF or moving an existing superannuation fund over to an SMSF perhaps with a third party platform like New Brighton Capital, Australians can take advantage of the current low tax rates for SMSFs.
Owners of an SMSF can then trade in crypto across platforms like Binance, Swyftx or BTC or use mining experts NGS Crypto and diversify their portfolio ahead of what will hopefully be a fruitful retirement.
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