How do you make a bitcoin-only brokerage profitable? The answer isn’t complicated. You offer the highest quality services to as many people as possible for a good price. This is the strategy Alexander Leishman and the team at River employ. And River’s high-quality services largely hinge on staying true to what Leishman calls "the Bitcoin ethos," at the core of which is the "not your keys, not your coins" philosophy.
The Engineer Behind River
Leishman completed an undergraduate degree in aerospace engineering and holds a master’s degree in computer science from Stanford. His résumé boasts of experience ranging from a robotics engineering intern to a cryptography researcher at Stanford to a software security engineer for Airbnb. In so many words, he has notable technical abilities — the type you’d want someone who secures millions of dollars in bitcoin on behalf of clients to have.
The Focus on Security
Leishman emphasizes the importance of actively containing risks and improving systems to ensure that client funds are secure. He acknowledges the lack of trustworthiness in the industry and underscores the need for self-reliance in custody solutions to avoid potential pitfalls faced by other companies.
Passion for Bitcoin
Leishman's passion for Bitcoin stemmed from his interest in challenging centralized power structures after delving into economics during college. His journey led him to Bitcoin as a solution that aligned with his ideals of decentralized money and financial independence.
Building River from Scratch
With his deep understanding of crypto security and payments, Leishman founded River to provide a platform that prioritizes client security. By developing its custodial infrastructure, River stands out in the industry by offering a tailored experience that centers around Bitcoin.
Future Outlook and Growth
While Bitcoin is evolving as a store of value, Leishman believes there is more work to be done to establish it as a widely accepted medium of exchange. River's focus remains on enhancing its brokerage service and simplifying the process of buying and custodying Bitcoin, with a keen eye on facilitating seamless transitions between Bitcoin and fiat currencies.
Frequently Asked Questions
Are You Ready to Invest in Gold?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. You can invest in both options if you aren't sure which option is best for you.
Gold is a safe investment and can also offer potential returns. It is a good choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. Its value fluctuates over time.
This does not mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold is its tangible value. Gold can be stored more easily than stocks and bonds. It is also easily portable.
You can always access gold as long your place it safe. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
Also, you'll reap the benefits of having some savings invested in something with a stable value. When the stock market drops, gold usually rises instead.
You can also sell gold anytime you like by investing in it. Just like stocks, you can liquidate your position whenever you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all your eggs on one basket.
Do not buy too much at one time. Start with just a few drops. Next, add more as required.
It's not about getting rich fast. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
How does a Gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase physical bullion gold coins at any point in time. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. You won't have to pay taxes on your gold investments when you die.
Your heirs inherit your gold without paying capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts as a mediator between you, the IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit is $1,000. However, you'll receive a higher interest rate if you put in more.
Taxes will apply to gold that you take out of an IRA. You will be liable for income taxes and penalties if you take the entire amount.
You may not be required to pay taxes if you take out only a small amount. There are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
What's the advantage of a Gold IRA?
There are many benefits to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part about gold IRAs? You don't have to be an expert. They're readily available at almost all banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
There are, however, some drawbacks. The volatility of gold has been a hallmark of its history. Understanding why you invest in gold is crucial. Is it for growth or safety? Is it for security or long-term planning? Only by knowing the answer, you will be able to make an informed choice.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce doesn't suffice to cover all your needs. Depending upon what you plan to do, you could need several ounces.
You don't have to buy a lot of gold if your goal is to sell it. You can even live with just one ounce. These funds won't allow you to purchase anything else.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
