Individual retirement accounts (IRAs) have long been a go-to for many investors looking to secure their financial future. However, as global markets grow increasingly volatile, more and more investors are looking to diversify their IRA portfolios with alternative assets, such as Bitcoin and other cryptocurrencies.
Unlike traditional IRA assets, cryptocurrency IRAs require specialized management, extensive security measures, and a deep understanding of cryptocurrency trading. That’s why we delved into the world of crypto IRAs to find the best options based on expertise, security, experience, fees, and more.
With brokerages like Fidelity offering Bitcoin as a 401(k) investment choice, the topic of crypto and retirement investing has grown increasingly popular. But did you know that several companies offer crypto trading through self-directed IRAs? These companies provide custodial services, storage options, and, in some cases, round-the-clock trading access, making it easier than ever to build your crypto wealth.
One of the biggest advantages of cryptocurrency IRAs is the ability to avoid capital gains taxes, as long as your investments remain in the IRA account. While cryptocurrencies may be volatile investments, the asset class has consistently outperformed almost any other investment over the past decade.
Of course, the crypto market has also seen its share of ups and downs, with cycles of bull and bear markets, and painful crashes following incredible pumps. However, despite these challenges, the market has always recovered and reached new all-time highs. For long-term believers in a decentralized future, opening an investment retirement account with a platform that provides access to cryptocurrency with the tax benefits of an IRA could be a wise move.
Whether you’re a seasoned crypto investor or just starting to dip your toes in the water, a cryptocurrency IRA could be an excellent addition to your retirement portfolio. With the right management and security measures in place, it’s possible to reap the rewards of the crypto market while still enjoying the peace of mind that comes with a secure retirement plan.
The Best Bitcoin/Crypto IRA Companies This Year
- Best Overall: Bitcoin IRA
- Best for Account Security: BitIRA
- Best for Investment Selection: Alto IRA
- Best Rates and Fees: iTrustCapital
- Best for Expert Assistance: Coin IRA
- Best for Self-Directed Investments: Equity Trust
- Best Variety of Cryptocurrency Supported: Regal Assets
- Best for Account Flexibility: Broad Financial
- Best for Crypto IRA Investors: My Digital Money
Best Overall: Bitcoin IRA
Bitcoin IRA is a cryptocurrency IRA company that has been around since 2016. They are the first and largest platform that enables individuals to invest in cryptocurrency with their retirement accounts. With its easy account setup, 24/7 trading, and military-grade security features, we consider it the best Bitcoin IRA company out there.
Setting up an IRA account and digital wallet with Bitcoin IRA is a breeze, thanks to their app or web dashboard. Once you transfer funds to your account, you can start trading within three to five days, with the freedom to buy, sell, and trade anytime, day or night.
What sets Bitcoin IRA apart is their support for trading over 60 types of cryptocurrency, including popular ones like Bitcoin, Ethereum, Litecoin, and Cardano. While the minimum to open a standard account is $3,000, Bitcoin IRA offers a Saver IRA that requires an initial deposit of $100 and a recurring investment of $100 per month through a linked bank account.
Security is also a top priority for Bitcoin IRA, and they offer 256-bit encrypted SSL trading. They store digital assets offline in separate cold storage accounts, and offer insurance for their digital assets up to $700 million.
One thing to note is that Bitcoin IRA charges a custodian fee, a security fee, and a one-time service fee, but the specific numbers may vary based on your balance. The one-time service fee covers support services for retirement fund rollovers, security storage, and setup costs for a self-directed IRA with BitGo Trust.
Bitcoin IRA is an award-winning platform that provides an easy-to-use experience, fast account setup, full-service IRA rollovers, educational content, and access to Bitcoin IRA experts who can help answer your questions. With over 60+ cryptocurrencies available for trading, 100% offline cold storage, and custody insurance up to $700 million, they are a comprehensive solution for investors looking to invest in cryptocurrencies using their IRA.
They also provide storage and insurance for your digital assets through BitGo Trust, a trusted name in the industry. The firm works to make the complex process of crypto investing simpler and safer.
Whether you need help with a rollover, traditional or Roth IRA, opening an account with Bitcoin IRA takes just a few minutes. With an extensive selection of cryptocurrencies to choose from and a robust security protocol in place, Bitcoin IRA is an excellent choice for investors looking to diversify their retirement portfolios.
Best for Account Security: BitIRA
BitIRA is a great option for anyone looking for a cryptocurrency IRA with the highest levels of security. Despite being founded only in 2017, the company has quickly made a name for itself by offering top-notch security for cryptocurrency transactions and storage, backed by unlimited insurance coverage. This is why we consider BitIRA to be the best for security.
BitIRA employs multi-encryption encoding for transactions to keep them secure while they’re most vulnerable online. Once transactions are completed, they are moved to physical keys kept offline inside grade-5 nuclear bunkers that are protected by armed guards and computer security specialists 24/7.
In fact, BitIRA is so confident in its security measures that it covers all digital assets dollar-for-dollar, ensuring all client digital currencies at full value. Additionally, the company offers a $1 million consumer protection insurance policy to safeguard against internal cases of fraud or theft.
To start an IRA with BitIRA, the minimum investment amount required is $5,000. The company requires customers to work with a digital currency specialist to open an account, and clients can invest and trade in nine types of cryptocurrency, including Bitcoin, Ethereum, Ripple, and Litecoin.
When it comes to security, BitIRA is a cut above the rest. The company only lets you access your crypto assets through multi-factor authentication, and it relies on offline cold storage to protect your assets. Moreover, BitIRA provides $100 million in custody insurance to shield you against theft, destruction, or loss.
One thing to note is that in addition to the $5,000 minimum requirement, there are three other fees to consider: a $50 setup fee, $195 annual maintenance fee, and 0.05% crypto storage fee. However, BitIRA’s end-to-end insurance coverage for your account is a rare and valuable feature among cryptocurrency IRA companies.
Overall, BitIRA is a great option for investors looking to add Bitcoin and other virtual assets to their retirement accounts. With a focus on top-tier security and a wide selection of supported cryptocurrencies, BitIRA is an excellent choice for anyone who wants to invest in crypto with their IRA.
Best Rates and Fees: iTrustCapital
iTrustCapital is a great option for anyone looking for a cryptocurrency IRA with low service and trade fees. Founded in 2018, iTrustCapital lets individuals buy and trade cryptocurrencies and physical gold in real-time through their retirement accounts, making it a top contender for the best rates and fees.
One of iTrustCapital’s most significant selling points is its affordability. While it’s not uncommon to pay up to 15% per transaction to trade cryptocurrencies, iTrustCapital charges just 1% per transaction, making it one of the most cost-effective options on the market. There are no monthly fees, and clients are not charged any initial purchase fees, broker fees, or scaling fees based on the size of their assets. In addition, new users receive a $100 Bitcoin reward when they fund their accounts.
iTrustCapital allows clients to trade in 29 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, and EOS, at any time of day or night using its 24-hour transaction service. The minimum to start an account is only $1,000, with a $30 trade minimum. The platform also allows its clients to diversify their IRA portfolios with gold while enjoying the same low fees.
One thing that sets iTrustCapital apart is its partnership with Coinbase Custody, which it began using in June 2021, to secure its digital assets up to $370 million. This is in addition to its basic coverage that starts at $50 million and is provided by Munich Re, a leading provider of insurance-related risk solutions founded in 1880.
The platform also offers gold and silver for precious metals traders. Clients can fund their accounts using an array of methods, including IRA transfers (iTrustCapital supports traditional, Roth, SEP, and SIMPLE IRAs), employer plan rollovers (available for 401(k)s, 403(b)s, thrift savings plans, and 457 plans).
While iTrustCapital is a great option for many investors, there are a few things to keep in mind. For instance, you cannot fund your IRA with crypto assets you already own; you can only do so with US dollars. Additionally, iTrustCapital is not available to residents of New York or Hawaii.
Overall, iTrustCapital is an excellent option for investors looking for low-cost cryptocurrency IRA solutions. With a wide range of cryptocurrencies to choose from, including gold and silver, and low trade fees, iTrustCapital is an excellent choice for anyone looking to invest in crypto with their IRA.
Best for Investment Selection: Alto IRA
Alto IRA is a unique IRA platform that offers a wide range of alternative investments, including cryptocurrencies, fine art, startups, real estate, and private equity. This makes it an attractive option for investors looking to diversify their portfolios beyond traditional assets.
One of the standout features of Alto IRA is its partnership with Coinbase, which gives clients access to over 200 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The platform also uses both hot and cold storage to keep your digital assets secure.
Alto IRA takes security seriously and offers $320 million in commercial crime policy insurance coverage and $3 million in cybercrime coverage. This is reassuring for investors concerned about the safety of their investments.
However, it’s important to note that some of Alto IRA’s investments are only available to accredited investors, which could limit access for some. Additionally, the platform doesn’t currently offer SIMPLE IRAs, which could be a drawback for some investors.
Overall, if you’re looking for an IRA platform that offers a wide range of alternative investments, including cryptocurrencies, and places a strong emphasis on security, Alto IRA is worth considering.
Best for Expert Assistance: Coin IRA
Coin IRA is a great option for investors who are new to cryptocurrency IRAs. The company’s free educational resource, “How to Add Bitcoin and Other Cryptocurrencies to a Crypto IRA,” provides valuable information on the benefits of investing in cryptocurrencies through retirement accounts, as well as how to convert existing retirement accounts to invest in digital assets.
Once customers are ready to get started, Coin IRA’s team of specialized cryptocurrency retirement experts can guide them through the account setup process. The company supports investment and trading in several major cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more.
One of the most attractive aspects of Coin IRA is its low fees. There is no fee to set up an account, no annual or monthly maintenance fees, and no charge for insured cold storage for account holders’ digital assets. The minimum investment to open a cryptocurrency IRA is $5,000, or $5,000 if funds are transferred from a non-IRA account.
Coin IRA also keeps investors’ assets secure by storing them in cold storage, off balance sheet, in the name of Equity Trust for the benefit of each specific account holder.
Coin IRA provides a great investor experience with its free educational resource and dedicated team of cryptocurrency retirement experts. The company’s low fees and secure storage options also make it an attractive option for investors looking to diversify their retirement portfolios with digital assets.
While Coin IRA supports investment and trading in several major cryptocurrencies, the selection is not as extensive as some other crypto IRA companies. Additionally, the minimum investment to open an account may be higher than some investors are comfortable with.
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Best for Self-Directed Investments: Equity Trust
Equity Trust has been in the financial services industry for almost 50 years, with over 30 years of experience in self-directed IRAs. With a focus on providing personalized guidance and expertise in traditional and alternative investments, Equity Trust is an excellent choice for those looking for a self-directed investment option.
Clients must speak to a representative to open an SDIRA account with Equity Trust, after which they can trade up to eight cryptocurrencies with no fees and a one-day settlement. Equity Trust has also implemented six security measures to protect its clients’ assets, including multi-factor authentication and cold storage.
Clients have access to SDIRA specialists to help them manage their accounts and educational tools to help them understand their investment options. Equity Trust also provides a dashboard to its clients for handling transactions, requiring them to issue directions to an account specialist to invest funds from their accounts.
The company charges annual administration fees ranging from $75 to $2,640, depending on the account size, as well as a $50 setup fee and a 0.07% monthly cold storage fee based on the account balance. While Equity Trust offers a range of assets, including real estate investments, precious metals, stocks, and cryptocurrencies, the company’s fee structure may not be transparent.
In addition to Equity Trust’s expertise, the company has partnered with BitIRA to provide additional support and expertise in cryptocurrency investing. BitIRA is a self-directed IRA trading platform that offers 25 cryptocurrencies, including Bitcoin, Ethereum, and Ripple, for traders interested in crypto IRA investing. However, BitIRA has a higher minimum investment amount of $5,000 and charges a $50 setup fee, $195 annual maintenance fee, and a 0.05% crypto storage fee.
Best Variety of Cryptocurrency Supported: Regal Assets
Regal Assets is a well-established investment firm that has been in operation since 2009, primarily focusing on precious metals. The company expanded into the cryptocurrency market in 2017, offering a wide variety of investment options for its clients. Regal Assets stands out from other crypto IRA companies because of its extensive selection of investment options, making it our top choice for the best variety of cryptocurrency supported.
Regal Assets offers an easy-to-use online application process for setting up an IRA account, requiring only an initial investment or a rollover from a traditional IRA. The company has a team of experts available to help clients through the account creation process.
As a highly rated crypto IRA company in the US, Regal Assets was the first company in the industry to receive a crypto trading license. While their website only lists 22 supported cryptocurrencies, including Bitcoin, Ethereum, Ripple, and Litecoin, the company allows clients to invest in almost any cryptocurrency they desire.
Regal Assets also offers flat fees, including a $100 annual administration fee and a $150 yearly storage fee, which is waived for the first year. The storage fees include several offshore storage options for precious metals, which is a unique feature not offered by other firms.
Regal Assets is an excellent choice for individuals interested in alternative investments such as cryptocurrencies and precious metals. The firm requires a minimum investment of $5,000 to get started, which may be higher than some competitors. Nonetheless, Regal Assets’ expansive selection of investment options, combined with its excellent reputation and competitive pricing, make it a top choice for investors.
Best for Account Flexibility: Broad Financial
Broad Financial is an IRA provider that offers a unique feature known as Checkbook IRA LLC, giving you complete control over your cryptocurrency. With this option, you can choose any cryptocurrency, exchange, or wallet you want. This flexibility sets it apart from other IRA providers.
Broad Financial’s IRA has no account minimums, and it’s available as a traditional or Roth IRA, which means you can contribute with pre-tax or post-tax dollars. The only two fees you need to keep in mind are the $1,295 account setup fee and the $95 quarterly custodial fee.
While there are no account minimums, keep in mind that you’ll need to pay the $1,295 setup fee upfront. However, the platform’s flat fee structure means there are no asset-based or transaction fees.
In addition to cryptocurrencies, Broad Financial allows you to invest in other assets like real estate, private loans, precious metals, small businesses, and more. This level of flexibility enables you to move your retirement funds to the places you prefer, saving you time and energy while increasing your net worth.
Another significant advantage of Broad Financial is that you can hold your private keys, giving you control over your security and peace of mind. You can choose the storage format you prefer, use an existing wallet, and customize your security as you see fit. With free lifetime customer support, tax-advantaged accounts, and a broad range of investment options, Broad Financial is an excellent choice for investors seeking more control over their IRA.
Best for Crypto IRA Investors: My Digital Money
My Digital Money (MDM) is a popular cryptocurrency trading platform that partners with My Equity Trust to provide self-directed crypto IRA products. This allows individuals to invest their retirement savings in cryptocurrencies and earn tax-free or tax-advantaged profits to grow their retirement portfolio.
MDM offers several types of IRA accounts, including the Simple IRA, Traditional IRA, Roth IRA, and Simplified Employee Pension Plan (SEP) IRA. Once you set up a cash account, you can start trading and take advantage of the MDM platform’s unique features. For instance, you can trade away from the prevailing markets, reducing risk and helping you purchase at the best price possible. You can also use limit orders that buy or sell at specific prices or after certain price changes.
One of the key advantages of MDM is that you have complete control over your IRA funds. This means you can trade cryptocurrencies independently of your IRA on the same platform, giving you the freedom to invest in the assets you choose.
To get started with MDM, you’ll need to pay a one-time setup fee of $50. The platform offers transparent pricing with no hidden fees, so you can rest assured that you won’t be hit with unexpected costs. Additionally, MDM has excellent customer support and offers educational resources to help you navigate the platform and make informed investment decisions.
Overall, MDM is a solid choice for individuals who want to invest in cryptocurrencies through their retirement accounts. With its user-friendly platform, low fees, and range of IRA account options, MDM provides a flexible and accessible way to grow your retirement savings with cryptocurrencies.
How Bitcoin/Crypto IRAs Work
Investing in a cryptocurrency IRA can be an attractive option for investors who are interested in diversifying their retirement portfolios. However, it’s important to keep in mind that this type of investment comes with unique challenges and potential risks.
One challenge is the higher fees associated with crypto IRAs compared to traditional IRAs. These fees typically include holding fees, minimum monthly account fees, establishment fees, and fees for purchasing assets and fund transfers. It’s important to carefully consider these fees and factor them into your investment strategy.
Another consideration is the regulatory structure surrounding crypto IRAs. Cryptocurrency accounts within an IRA are subject to regulations that they would otherwise avoid. IRA contribution limits apply to crypto IRAs, and investors are required to purchase cryptocurrencies in an IRA from a designated firm, which can charge fees for their involvement.
It’s also worth noting that crypto IRAs can only be traded during standard market hours, which means that the value of an IRA can change significantly over a weekend while leaving the investor with no recourse. Additionally, crypto within an IRA account is subject to capital gains taxes, so it’s important to factor in tax implications when considering this type of investment.
Despite these challenges, investing in a crypto IRA can offer benefits like tax-free or tax-advantaged profits that can bolster your retirement portfolio. It’s important to carefully consider your investment goals, risk tolerance, and fees associated with different IRA providers to find the best option for your needs.
What are the Benefits of Bitcoin/Crypto IRAs?
Investing in cryptocurrency through a crypto IRA can offer a range of benefits, but one of the most significant is the potential for tax savings. By investing in digital assets through a crypto IRA, investors can enjoy the same tax benefits as traditional IRAs, such as tax-deferred growth and tax-free withdrawals in the case of Roth IRAs. This is because the IRS recognizes cryptocurrency as property, and therefore, the same tax rules that apply to traditional assets also apply to digital assets held within an IRA.
In addition to tax benefits, crypto IRAs also incentivize investors to hold cryptocurrency over the long-term. This is because they are subject to the same contribution limits and penalties as traditional IRAs, which means investors are encouraged to hold their investments for a longer period to maximize their returns. As digital assets continue to see increased adoption, investing in cryptocurrency for the long-term could be a wise investment strategy that has the potential to outperform traditional assets.
However, it’s important to note that investing in cryptocurrency is inherently risky due to its volatility and lack of regulation. Investors should carefully consider their risk tolerance and conduct thorough research before investing in digital assets through a crypto IRA. Additionally, investors should be aware of the fees associated with crypto IRAs, which can be higher than traditional IRAs.
Frequently Asked Questions (FAQ)
A Bitcoin IRA functions like any other self-directed IRA, but instead of holding traditional investments, the account holds digital assets such as Bitcoin, Ethereum, or Litecoin. The IRS treats cryptocurrencies as property, which means that any gains made from cryptocurrency investments held for over a year can qualify for long-term capital gains tax rates. Investors must use a custodian to manage their Bitcoin IRAs because of the IRS’s requirements, which apply to all self-directed IRAs. The custodian oversees the purchase and storage of digital assets.
Choosing the right Bitcoin IRA company is crucial for secure and profitable investment. It’s essential to evaluate the company’s security measures and fees when selecting a provider. Investors should research the custodians the firm uses to ensure the safe storage of digital assets. They must also consider the company’s overall experience in managing IRAs, not just cryptocurrencies.
There is always a level of risk involved when investing in cryptocurrencies, making it essential to choose a reputable and trustworthy Bitcoin IRA provider. The best Bitcoin IRA companies offer several layers of transaction encoding and security features, as well as a variety of cryptocurrency options for investment. They also offer offline cold storage, providing the most secure way of storing digital assets.
The primary advantage of investing in a Bitcoin IRA is that it diversifies retirement portfolios, helping to mitigate risk and maximize potential returns. Including cryptocurrencies in some types of retirement accounts can also help investors avoid heavy capital gains taxes.
Yes, investors can hold Bitcoin and other digital assets in an IRA account through a crypto IRA company. This account has the same rules and benefits as a traditional IRA account that holds fiat currency.
Holding cryptocurrency comes with an inherent level of risk, but reputable crypto IRA companies partner with professional custodians to add security to their offerings. However, investors should remember that they assume primary legal responsibility for their holdings.