IRAs are utilized by individuals as a means of saving and investing in a variety of assets such as Bitcoin, cryptocurrencies, cash, bonds, or stocks for the purpose of long-term retirement savings, offering tax benefits.
An individual can use Cryptocurrency IRAs to locate a custodian for a self-managed IRA that enables them to invest in cryptocurrencies. The chosen custodian must comply with the Internal Revenue Service’s regulations, as Bitcoin and other types of digital currencies are treated as assets for IRA purposes.
List of the Best Bitcoin IRAs
Listed below are the top-rated companies that offer Bitcoin IRA services.
- Bitcoin IRA
- iTrustCapital
- CoinIRA
- Alto
- BitIRA
#1) Bitcoin IRA
Suitable for seasoned investors in crypto-based Individual Retirement Accounts who seek to generate interest from their cryptocurrency savings.
Established in 2016, Bitcoin IRA is the leading provider of Individual Retirement Accounts for cryptocurrency investments. It enables individuals to invest in digital currencies using funds from their retirement accounts. The process involves opening an IRA account and digital wallet, followed by trading within three to five days of fund transfer.
Characteristics:
- Aside from the $3,000, opt for the Saver IRA in which you deposit $100 with a recurring investment of $100 per month.
- Can also invest in gold and save cash through IRA Bitcoin.
- You can roll assets (IRA, Roth IRA, SEP-IRA, SIMPLE IRA, 401(k), or 403(b) from an existing retirement account into the IRA. Roll a portion or all assets from these accounts.
- Invest in Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Digital Gold (DG), Ripple (XRP), Litecoin (LTC), Stellar Lumens (XLM), and Zcash (ZEC) for retirement.
- Accounts type supported — both as a Roth or traditional IRA.
- In addition to a basic IRA, earn up to 6.00% APY from your cash on the IRA. Crypto earnings differ from one crypto to another.
- Crypto assets secured through BitGo Trust.
A minimum of $3,000 is required to open an account.
There are three fees associated with this service. The deposit fee ranges from 0.99% to 4.99%, the transaction fee is 2%, and the security fee is charged at a rate of 0.08% per month.
#2) iTrustCapital
Ideal for those new to IRA.
ITrustCapital, a cryptocurrency IRA that has been approved by both the IRS and SEC and has a favorable rating of 4.5 on TrustPilot and an AAA rating on Business Consumer Alliance, is a legitimate option. Additionally, it offers the opportunity for long-term retirement savings by allowing investment in precious metals along with self-directed cryptocurrency IRAs.
Characteristics:
- Supports Bitcoin, Ethereum, Litecoin, Bitcoin Cash and 21 other cryptos and crypto tokens.
- The monthly fee covers IRA set-up, transfer/rollover facilitation, IRA fund contribution facilitation, reporting on taxes, no limit on storage of crypto with institutional custodial services, and maintenance and support.
- Trading orders were completed in 5 minutes.
- Good customer support.
- Educational resources are provided through a dedicated Knowledge Center. However, no investor’s advice is provided.
You must invest a minimum of $2,500, with an additional $1,000 required for a subsequent deposit.
The monthly fee is $29.95, and there is a 1% transaction fee for crypto. Gold is sold at $50 above spot price, while silver is sold at $2.50 above spot price.
#3) Coin IRA
Ideal for individuals seeking guidance and recommendations on cryptocurrency in conjunction with individual retirement accounts.
Compared to Bitcoin IRA, Coin IRA has the benefit of lower Bitcoin IRA fees and provides various storage choices for individuals who seek to invest in cryptocurrency for retirement. Moreover, with Coin IRA, customers have access to cryptocurrency advisors, thus offering support while investing in crypto for retirement purposes.
Characteristics:
- Keep crypto offline, to a hardware wallet (KeepKey, Ledger, or Trezor), exchange wallets, or any other wallet you want.
- Open the IRA account with a minimum of 20,000 or transfer $3,500 from a non-IRA account.
- Rollover a portion of 401(k) or IRA to the IRA.
- Non-IRA accounts with higher trading limits for experienced investors.
- Invest in a traditional IRA or post-tax dollars in a Roth IRA.
An account must be opened with a minimum of $20,000.
The charges include a yearly maintenance fee of $195, a setup fee of $50, and a monthly storage fee of 0.05%.
#4) Alto IRA
Coinbase is most suitable for individuals who use SEP-IRAs.
The Alto IRA facilitates a self-directed investment account that enables individuals to invest a wide range of assets into their retirement account. Options include angel funds, real estate enterprises, cryptocurrency exchanges, online investment funds, and approved private investors.
Features:
- Does not support inherited IRAs or individual 401(k)s for anyone looking for Bitcoin 401 k plan.
- Supports direct investments or those that you make without engaging any of the Alto IRA partners. These include extending a small business loan or buying residential real estate. The investment must, however, be legal.
- Allows buying, flipping, and selling of property using retirement funds as long as you follow the rules.
- Trade via Coinbase with minimums as low as $10. There are no set-up charges.
- You pay $10 per investment when investing with preferred investors, otherwise; you pay $50.
- Can fund accounts with major credit and debit cards.
The minimum amount required for investment is $2,500.
The fees for using the platform are as follows: for starter accounts, a monthly fee of $2 is charged, whereas Pro accounts come with a monthly fee of $25. A transaction fee of 1.5% is applicable to all transactions. Partners are charged a fee ranging from $10 to $50 for each investment. Private investments incur a fee of $75. Wire transfers cost $25, account closures incur a fee of $50, and a trade fee of 1.5% is charged.
#5) BitIRA
Ideal for individuals who require aid from experts in the field of cryptocurrency.
BitIRA is a platform that amalgamates traditional and IRA Bitcoin investments, catering to both institutions and individuals who seek to expand their investments into cryptocurrency. It provides a comprehensive service that includes assisted setup, account roll-over, and funding. The IRA was established by the Birch Gold Group.
Characteristics:
- Offers both traditional or Roth IRA accounts.
- Supports Bitcoin, Bitcoin Cash, Ethereum, Zcash, Ethereum Classic, Litecoin, Stellar Lumens, and Bitcoin SV. Besides crypto, invest also in traditional assets like stocks and bonds or other assets inside an IRA.
- $100 million custody insurance.
- Secured against hacking and other forms of account violations. This is done through multi-encryption, multifactor authentication, and end-to-end insurance coverage.
- Allows buying and selling of crypto.
- You can speak with experts to advise on choosing an investment using this IRA.
- You can also manage your crypto and IRA portfolio online 24/7.
To participate, a minimum investment of $5,000 is required.
The charges include a $50 fee for setting up an account, $195 for annual maintenance, and a monthly fee of 0.05% for offline storage.
BONUS: Bitcoin IRA Review: Are They Trustworthy?
Bitcoin IRA has been in the cryptocurrency IRA trading industry for a long time and is considered one of the most reputable and established companies. Their services are straightforward, requiring no LLC creation and user-friendly.
Pros & Cons
This brief summary highlights both the advantages and disadvantages of the company.
Pros
- Trusted, US-based company is an industry pioneer.
- Effective way to avoid many tax penalties when trading cryptocurrency.
- Transferring funds into your bitcoin IRA account is simple and fast.
- The platform is intuitive to navigate and includes a robust knowledgebase.
Cons
- Customer service can be difficult to reach on the phone.
- Fees are on the higher side compared to many other platforms.
Even though cryptocurrency is gradually gaining acceptance in the world of mainstream finance, investing in crypto through an IRA remains an unfamiliar idea to most investors.
Considering the potential tax advantages and the possibility of generating yields that surpass inflation, a cryptocurrency IRA presents an attractive option; however, there are some distinctive risks that need to be taken into account.
As one of the earliest and most reputable cryptocurrency IRA platforms available, the question remains: does Bitcoin IRA offer a reliable, user-friendly, and beneficial contribution to your retirement strategy?
In this review of Bitcoin IRA, we will examine the positive aspects, negative aspects, and all other important information you should be aware of!
About Bitcoin IRA
Bitcoin IRA, which was founded in 2015, is the most long-standing, extensive, and widely recognized corporation that provides cryptocurrency IRA trading.
This is a business that is based in the US and adheres to all financial security measures that are required in the US. They also have insurance on all assets held in custody for up to $100 million provided by BitGo Trust and Lloyd’s of London.
Their focus is solely on bitcoin and they stress the fact that they exclusively deal with cryptocurrency. Their customer service personnel are well-versed in this field, and they refrain from promoting alternative products like stocks, bonds, or precious metals.
Many other platforms that provide bitcoin IRAs do not offer this significant and appreciated specialization.
Services
With Bitcoin IRA, you have all the necessary tools and resources to conduct cryptocurrency trades within your IRA. As a self-directed IRA provider, there is no need to establish an LLC.
They categorize their services into four major groups.
- They facilitate the transfer of an existing IRA into a cryptocurrency IRA
- They provide 24/7 cryptocurrency trading
- They secure your crypto offline in segregated cold storage
- They provide financial and other performance reports
- You can use a Roth, SEP, or traditional IRA. You can also use your 401(k) if you’re 59.5 or older or if you’re no longer employed by the sponsor.
Bitcoin IRA allows you to begin a fresh IRA with a minimum deposit of $100 in lieu of transferring bitcoin to an established IRA.
Although bitcoin is their most widespread currency, they provide other investment options such as Ether, XRP, and Litecoin.
Educational Services
The Crypto Knowledge Center provided by Bitcoin IRA has a plethora of useful information, including real-time cryptocurrency price graphs, easy-to-follow instructions for beginners, forecasts on prices, and a host of additional resources.
In addition to instructing you on the process, they offer a range of videos to guide you in utilizing the platform.
By creating an account, you will have access to their complimentary e-book, the Ultimate Guide to Crypto IRAs.
Bitcoin IRA Calculator Service
The platform also offers a beneficial tool called the Bitcoin Calculator. This tool enables you to enter a potential investment and select a historical date. Once done, the Calculator displays the hypothetical return had you invested at that particular time.
Although past results do not provide a definite indication of future earnings, observing performance trends may assist you in making more accurate projections.
It can be a fun tool to consider possibilities and maintain focus on long-term goals.
Fees & Investment Minimum
If you have done some comparison shopping, you may have observed that Bitcoin IRA’s fees are relatively high. Nevertheless, it is essential to consider that they offer comprehensive services, and hence, you can avoid expenses associated with setting up an LLC and performing other tasks on your own.
The fees are calculated as a percentage of your account balance and are charged upfront for the first five years of the hold.
- Opening an account requires a minimum of $3,000. For an initial investment between $3,000 and $49,900, fees for a five-year hold are 2.5%, for a total percentage of 12.5%.
- With an initial investment of $50,000 to $99,900, fees for a five-year hold are 2.0% for a total of 10.0%.
- Finally, an initial investment of $100,000 or more, the five-year hold fee percentage is 1.5% for a total percentage of 7.5%.
There is an annual custodial fee of $240 for all accounts. Moreover, there is a 1% trade fee for sell orders and a 5% fee for buy orders.
FAQs
Is Bitcoin IRA Legit?
Indeed, Bitcoin IRA’s strong reputation sets them apart from much of their competition. Having over six years of experience, they are pioneers in this investment field. Additionally, they are a United States-based company operating within federal regulations and benefit from a $100 million custody insurance policy.
Where are My Bitcoin or Crypto Stored?
Proper storage is necessary to protect your Bitcoin from digital theft and physical server harm, even though it is intangible. The use of offline, segregated cold storage through Bitgo Trust by Bitcoin IRA ensures the safety of your cryptocurrency.
Why Invest in Bitcoin in My IRA?
Bitcoin offers two primary benefits. Firstly, it differs from conventional currencies since production has a limit, meaning the coin’s value can outstrip inflation when the cap is hit. Furthermore, if you have a cryptocurrency IRA, you don’t need to pay taxes for capital gains.
Do I Need to Setup an LLC?
Bitcoin IRA stands out for not requiring users to create an LLC to add bitcoins to their IRA, which is a significant advantage of their platform. While typically a time-consuming and expensive process, a self-directed IRA can be achieved by creating an LLC to add bitcoins. Fortunately, Bitcoin LLC offers a convenient all-in-one service that eliminates the need to create an LLC.
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