Category: New Brighton Capital

Categories
Australia Bitcoin Crypto News New Brighton Capital Superannuation

Australian SMSFs are Buying More Bitcoin Despite Increase in Price

Australian SMSFs are Buying More Bitcoin Despite Increase in Price

A report by the Australian Financial Review on Wednesday confirmed the growing interest in Bitcoin among retirees in Australia. Self-managed super funds or SMSFs are increasingly accumulating more Bitcoins for clients, not minding the increased market value of the cryptocurrency.

On Wednesday, the price of the leading digital currency, Bitcoin (BTC), soared to another record level of over US$51,100. This indicates that retirees in the country are more confident with allocating their funds to the cryptocurrency.

A Five-fold Increase in 2020

Last year, the Bitcoin purchases of self-managed super funds increased by five-folds, according to BTC Market, the largest cryptocurrency exchange in Australia. The average crypto trade amongst these funds also spiked by 20 percent within the last quarter of the year, as Bitcoin began seeing more institutional and corporate investors, like MicroStrategy, MassMutual, Square Inc., and many others. 

“Previously trade sizes for SMSFs were in the tens of thousands of dollars, but we’re now seeing in the hundreds of thousands of dollars,” according to Caroline Bowler, the chief executive at BTC Markets. This is probably because many Australian retirees now prefer the cryptocurrency to gold as a better asset to hedge against the declining value of fiat currencies, the report reads.

“Bitcoin as a store of value is interesting to SMSFs holders. People are researching it and getting better educated around it. They look at it as a deflationary asset, and I think they understand the concept behind that,” Bowler added. 

Interested in buying crypto with your Super? Need help? Speak with Cryptocurrency Superannuation Expert at New Brighton Capital Book a Free 20 min Consultation

Only 21 Million Bitcoin Will Ever Exist

Fiat currencies like the British Pounds and Australian dollar are issued and controlled by the government and the central bank of the nation. There is no limit to the number of currencies these authorities can issue. However, Bitcoin is pre-programmed to cap at 21 million; nothing more, nothing less. This supports the idea that the cryptocurrency can serve as an inflation hedge asset. As of February 17, there was over 18.6 million BTC in circulation. 

Categories
New Brighton Capital Superannuation

5 Advantages and Disadvantages of a Crypto Focused Superannuation

In this article, we’ll take a look at the Australian Pros and Cons of having Bitcoin and Cryptocurrency in your Superannuation.

We’ve spoken to the experts in Crypto Super at New Brighton Capital to help us produce this content for you.

Recently, we also took a closer look at the suitable cryptos for your super portfolio and why they might be good candidates considering Price Stability, Longevity, Robustness and Moat/Competition.

Disadvantages

  1. Risk – performance. New Brighton Capital does not provide financial advice. Our bread and butter client has a good idea of where they want to invest their super and we provide the tools and know how so you can invest your super how you see fit, whether that be in Bitcoin Ethereum or BPH and Tesla. The ATO does not require you to have a certain level of performance with your SMSF but you need to realise that the buck does stop with you regarding the performance of your fund. So as long as you are comfortable making the investment decisions and being in the driver’s seat, then an SMSF might be a good option for you. 
  2. Responsibility – Self managed super funds do carry a lot of responsibility regarding compliance and reporting obligations. NBC becomes what is called the administrator for your fund. So while you are ultimately responsible for the running of your fund, you outsource the administrative work to us. So we look after the compliance and reporting etc so you can focus on managing your portfolio. 
  3. Cost – The cost to run an SMSF is static, meaning it costs the same regardless of how much you have in you super. This is different to retail funds where you will pay on average of 1-1.5% of the value of your super in fees each year. Eventually it gets to the stage where you are crazy not to have an SMSF, but after you do the sums, even if you find an SMSF more expensive for now, many clients are happy to pay an extra few hundred dollars a year to be exposed to assets that they you would not otherwise be able to be exposed to in their superannuation, like Bitcoin. There is no legal minimum balance you need to have an SMSF, it just needs to make sense to you in your situation. 
  4. Time – active or inactive as you wish. NBC has integrated with Australia major exchanges to cut the time you spend to prepare your annual reporting to minutes, not hours. It takes our average client under 30 minutes a year to provide the information we need to complete the reporting requirements for your SMSF.
  5. Security – Specifically relating to cryptocurrency, SMSFs can keep their coins on exchanges or transfer coins to their own hardware wallet where you control the private keys. New Brighton Capital will never ask for your seed phrase or private keys so make sure you never give these to anyone, ever. We will, however, require the public addresses of where your SMSF off exchange crypto holdings are so we can verify their existence and complete the reporting for your fund. Clients of New Brighton Capital also have access to a secure encrypted online portal which you can think of as your online filing cabinet for your SMSF. This is where we communicate with you and you upload your information for the reporting etc.

Advantages

  1. Choice – Vastly more options with an SMSF compared to a retail superannuation fund. Clients can purchase any cryptocurrency listed on any of our approved providers. Clients are not just limited to cryptocurrencies, you can also invest in shares (local and abroad), real estate, art or anything permitted under the superannuation laws. While New Brighton Capital cannot tell you where to invest we can definitely let you know whether you are permitted to invest in a certain asset or what you options might be.
  2. Control – With New Brighton Capital, You are the only one in control of your SMSF bank account, your trading accounts and your assets.  Noone controls your money or your assets but you.
  3. Cost – As explained in the disadvantages, the cost to run an SMSF is generally fixed regardless of how much you have in your super. So there comes a point where you are crazy not to have an SMSF because it is simply cheaper.
  4. Front run institutional money – Rarely does the retail investor have an advantage over institutions like the banks or Wall St. For over a decade retail investors have had the advantage over institutional investors in the crypto space because due to on ramps and legislation. This window is closing fast as institutions now have the on ramps and legislative clarity to participate in cryptocurrency space.
  5. Flexible – You do not have to transfer all your superannuation money into an SMSF if you set one up. You can kick it off with a partial transfer and transfer more funds into the SMSF down the track. So, yes you can have a retail superannuation fund and an SMSF at the same time. You are also not tied to your SMSF, so you can wind it down and move back to a retail fund if you wish in the future.

Need help? Speak with Cryptocurrency Superannuation Expert at NGS Crypto, call 1300 001 647, or Contact them via email

Categories
New Brighton Capital Superannuation

New Brighton Capital Partners with Swyftx to Provide 200+ Cryptos For SMSF’s

New Brighton Capital recently announced a Partnership with Australian cryptocurrency exchange Swyftx to provide access to Bitcoin and over 200 cryptocurrencies for Self Managed Super Funds.

Crypto currencies and blockchain assets represent a quantum leap in political and economic freedom for the world. By extension, this space offers the greatest investment opportunities of our generation.

Michael White – Founder/CEO New Brighton Capital

New Brighton Capital CEO, investor and long time crypto fanatic Mike White, explains how crypto enthusiasts can now hold bitcoin and other cryptocurrencies in their superannuation.

Need help? Speak with Cryptocurrency Superannuation Expert at New Brighton Capital Book a Free 20 min Consultation

New SMSF $250 Free Credit

For those without an SMSF, Swyftx is offering $250 FREE account credit to clients who set up a new self-managed super fund with New Brighton Capital and use coupon code “SWYFTX” on the application.

About New Brighton Capital

New Brighton Capital logo

New Brighton Capital is an Australian based company providing professional services to own Cryptocurrencies in your SMSF. You can own Bitcoin and other assets in your own superannuation through approved providers – Australian Banks and Australian Crypto Exchanges. NBC & Partners handle all the compliance, tax returns, audits etc so you can concentrate on managing your investments and building your portfolio.

About Swyftx

Swyftx is an AUSTRAC registered Australian crypto currency exchange & trading platform. Buy, Sell & Trade over 100 Crypto-Assets on Australia’s most progressive Cryptocurrency Exchange.

How to get Started?

There are a few considerations before deciding to buy Cryptos in your Superannuation. There are also some useful FAQ’s you can read which may help.

For more information relating to SMSFs contact NBC on 1300 264 022 or email [email protected].