Crypto and retirement investing has become an increasingly popular topic, especially as brokerage firms like Fidelity have decided to include Bitcoin in their 401(k) plans. However, there are also companies offering cryptocurrencies through self-directed IRAS. These companies provide custody services, storage options, 24/7 trading access, etc.
With a traditional IRA, you would pay tax on any profits from selling cryptocurrency. However, if you have a Roth IRA, you won't owe taxes when you sell off your holdings.
Best overall: Crypto IRA
There are many different types of cryptocurrencies available todayYou can either buy one cryptocurrency or mix several cryptocurrencies together.Bitcoin IRA offers up 6% interest in an IRA account.$100 million insurance availablePricing information is not readily available on the website. You'll need to contact a company representative for more details.Features: 24/7 trading, offline storage, and $100 million insuranceBetter Business Bureau rating: A+
For best security, use BitIRA.
BitIRA
Several supported cryptocurrenciesTo prevent theft of crypto assets, multi-factor authentication (MFA)Offline crypto storage$100 million in custody insuranceCosts include a $500 setup fee, an annual maintenance fee of $195, and a 0.05% crypto transaction fee.
Read Our ReviewFeatures: Supports several different cryptocurrencies, allows for offline storage, and has a $100 million custody insurance policy.
For expert assistance, use CoinIRA.
CoinIRA
Supports bitcoin, ethereum, litecoin, and moreIf you need help, you can contact a consultant for advice.You can choose your preferred storage walletHigh account minimumFeatures: Educational resources for cryptocurrency, consulting services, and flexible walletsBetter Business Bureau: A+
Lowest fees: iTrustCapital
iTrustCapital
25+ cryptocurrenciesPrecious metals available you can use several methods to fund your retirement accounts, including IRAs and employer plans.$320 million insurance for crypto custody services through Coinbase CustodyYou cannot contribute funds using cryptocurrency you own before creating an account for them.Features: Crypto currencies and precious metals investing, round-the-clock customer service, and secure storage and protection
Best for beginners: BlockMint
BlockMint
Supports multiple cryptocurrenciesBlockMint provides professional guidance for setting up an investment portfolio and offers ongoing support.Cryptocurrency platforms store their cryptocurrency assets in two different vaults.Users won't be able to use cryptocurrencies at any time they want.Features: one-on-one guidance by BlockMint professionals and offline storage
Best for account flexibility (and lowest fees): Broad Financial
Broad Financial
There’s no minimum to start using the app.You can use an IRA to invest in cryptocurrencies or digital assets.Team of experts available$1,295 account setup feeFeatures: Checkbook Control Over Your Retirement Account – No Minimum Balance Required; Easy Access To Team Of Self-Directed Retirement Experts
Compare the best bitcoin IRAs
Bitcoin IRA supports 24/7 investing in multiple cryptocurrencies, including bitcoin (BTC), etherum (ETH), Litecoin (LTC), Stellar Lumens (XLM), ZCash (ZEC), Bitcoin Cash (BCH) Ethereum Classic (ETC), and Digital Gold (DGC). You'll need at least $3,000 to start an account, and the platform lets investors buy into one cryptocurrency or a mix of multiple cryptocurrencies.
With a one-time service charge, Bitcoin IRA says its service fees cover support services for retirement fund rolls over (including rollovers from traditional IRAs, ROTH IRAs, SEP/SIMPLE IRAs, 403b plans, and 401(k) plans). It also includes security storage and setup costs for a Self Directed IRA with BitGo Trust, plus up to 6% interest per year.
With Bitcoin IRA, you store your assets with BitGo trust. The custody includes $1 billion in insurance and complete offline storage.
Be aware that fees and pricing aren't always straightforward. It may be necessary to contact a company representative for more details.
BitIRA details
BitIRA is another popular choice among investors looking to add Bitcoin and other virtual assets to retirement accounts. It's managed by an independent custodian, Equity Trust Company, which gives you full control over your assets.
BitIRA supports multiple cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), ZCash (ZEC) and Stellar Lumens (XLM). You'll need at least US$5,000 to start investing, and there’s an initial setup cost of US$195 per year plus a 0.05% management fee.
BitIRA also focuses heavily on security. It only allows you to access your cryptocurrency holdings using two-factor authentication (2FA), and it uses offline cold storage to safeguard your assets. Furthermore, BitIRA offers $100 million in custodial insurance to protect you from theft, destruction, or losses.
You'll need to pay an initial $50 setup fee, an annual $195 maintenance fee, and a 0.05% crypto service fee.
CoinIRA details
CoinIRA provides various resources for investors interested in investing in cryptocurrencies. Among these resources are consultants who can help you answer any crypto-related questions and a free cryptocurrency IRA Guide that covers everything you need to know when setting up an IRA account.
Coin IRA supports Bitcoin, Ethereum, Litecoin, and more regarding its cryptocurrency offerings. It also has no maximum purchase limit on cryptocurrencies.
Another benefit is that CoinIRA offers you the option to select your own Bitcoin storage wallet. They say they’ll explain each strategy and help you find the best fit.
When looking at CoinIRA, be sure to check their fee schedule. They don't list this information on their website.
iTrust Capital
*Personal Finance Insider usually includes an investment platform's BBB rating in this column, but iTrustCapital does not currently have a BBB profile.
iTrustCapital offers more than 20 different cryptocurrencies for investors who want to invest in cryptocurrency IRAs. Among these include assets like Bitcoin, Ethereum, Cardano, Dogecoin, Polka Dot, Litecoin, and others.
The platform also lets you buy gold and silver through IRA transfers, employer plan rollover accounts, and personal retirement accounts. It also allows you to fund your account using various types of investment vehicles, including traditional, Roth, SEPA, and SIMPLE IRAS.
iTrust Capital also provides its clients with custody services through Coinbase Custody.
If you're looking to invest in cryptocurrencies, keep in mind that you won't be able to use them to fund an IRA. You'll need to convert them into US dollars first. Additionally, iTrust Capital isn't available to New Yorkers or Hawaiians.
BlockMint
BlockMint has a high account minimum but compensates by providing excellent customer service. You're paired with a professional who helps guide you through the investment process. And if anything goes wrong, they offer 24/7 support.
It also has two separate vaults for storing its clients' cryptocurrency holdings. They're both guarded by armed guards at night.
Your funding options include transfers from traditional IRAs, Roth IRA’s, SEP IRAs (Simplified Employee Pension), SIMPLE IRAs, 403(b) Plans, 457(b) Plans, Thrifts Savings Plan, or TIAA/CREF Retirement Accounts.
You should be aware that BlockMint doesn't conduct cryptocurrency transactions at any time besides regular business hours. If you want to buy or sell cryptocurrencies 24/7, you may need to consider another option.
Broad Financial is an online marketplace for buying and selling financial assets.
With Bitcoin IRA, one of our unique features is that we offer completely customizable IRAs for cryptocurrencies. We allow you to choose any cryptocurrency you'd like, any exchange, and any wallet you'd like.
You don't need an account minimum for IRAs. You can open one either through a bank or broker firm, and there are no annual or monthly fees. However, you may incur a $1,295 setup fee and a $95/quarterly custodial fee.
You'll want to be aware of these things: There are no account minimums, but you'll need to pay $1,295 upfront when setting up an IRA.
We looked at other Bitcoin IRA providers besides Coinbase.
Regal Assets: A Regal Assets portfolio includes cryptocurrencies and precious metals. To start investing, you'll need at least $5,000.Equity Trust: This investment firm offers a variety of different types of investments, including real estate, precious metals, cryptocurrencies (like Bitcoin), and more. It also lets you access their services through both their custody and crypto offerings, along with expertise from other companies like BitIRA. However, one drawback is that they don't provide any fee transparency.Alto IRA: Alto offers access to various investment opportunities, including fine art, start-ups, real estate, cryptocurrencies and more. The company works with Coinbase to offer more than 100 different cryptocurrencies, but you’ll only be able to select from the ones offered by Coinbase.Rocket Dollar: This online brokerage firm provides both self-directed IRA accounts and individual retirement accounts (IRAs). It’s easy to use and has a wide variety of investments available. Its setup fee may be too high for some people.
We used Google Trends to determine which cities were most interested in
To help you choose an IRA that works well for you, we researched several different types of Bitcoin IRAs.
When deciding which platform to use for our business, we took into consideration whether the platform had an adequate number of clients, whether they charged reasonable rates, and whether they were available 24 hours a day, 7 days a week.
Frequently asked questions
Why trust us?
At PersonalFinanceInsider.com, we aim to help our readers make the best financial decisions they can by providing them with objective, unbiased reviews of products and services. We also realize that the word “best” is often subjective, so for each product review, we provide both its advantages and disadvantages.
We compared and contrasted the features and fine print for different types of Bitcoin IRA accounts so you wouldn't have to.
A Bitcoin IRA is an investment vehicle for people who want to
With self-directed IRAs, you can only invest in cryptocurrency.
Unlike traditional and Roth IRAs where you must choose from preselected investment options, Self Directed Individual Retirement Accounts (IDRs) let you decide which investments to put into your retirement account. And they offer you greater control over the types of investments you're allowed to use.
Furthermore, according to US tax laws, every SDA must be registered with an independent third party called a “custodian.” For example, BitIRA acts both as the custodian and executes all crypto transactions.
Bitcoin IRA accounts are tax-deferred.
Bitcoin IRA accounts are simply self-directed retirement accounts that investors fund with cryptocurrencies such as bitcoin. And traditional cryptocurrency IRA and Roth IRA accounts generally have the same tax laws as the standard IRA account does. With a traditional cryptocurrency IRA, the investments you invest are tax deductible, and you'll only owe taxes once you withdraw your money. However, note that you'll incur a 10% federal income tax penalty if you attempt to withdraw your funds before reaching the age of 59 1/2.
Like traditional IRA accounts, Roth cryptocurrency IRA accounts allow you to contribute pre-tax dollars, make early withdrawals without penalty, and take out your earnings tax-free after reaching age 59½.
Is Bitcoin an IRA Worth It?
It's up to you whether you want to invest in Bitcoin IRA accounts.
If you're considering buying cryptocurrencies, it's important to understand the unique risks associated with doing so.
You need to know that you cannot use an existing cryptocurrency (like Bitcoin) to invest in these new crypto shares. Instead, you need to buy new crypto shares using fiat currency (US Dollars). Also, cryptocurrencies tend to be a lot more volatile than traditional investments like stocks and bonds.
Because of this, it's best to be cautious when thinking about investing in cryptocurrencies through an IRA.
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