Concerned that your crypto profits will be consumed by taxes?
Investing in crypto through Bitcoin IRA provides tax advantages.
But is it legit? And what fees do they charge?
Discover in this evaluation, which encompasses Bitcoin IRA’s charges, cryptocurrency options, and how it measures up against well-known rivals, such as iTrustCapital and Coinbase.
WHAT IS BITCOIN IRA?
The Bitcoin IRA platform enables individuals to invest in cryptocurrency through their IRA account.
Bitcoin IRA, which was established in 2016 and is headquartered in Los Angeles, became the initial custodian to provide crypto IRA services. Its members are able to allocate their retirement accounts by investing in various cryptocurrencies, not limited to Bitcoin.
You can easily start trading within 3-5 days of funding your account on their user-friendly trading platform, which is accessible via their mobile app or web-based interface.
In addition, their trading services are available round the clock, ensuring that you don’t overlook any opportunities beyond regular market timings.
Apart from their Bitcoin IRAs, they also provide a Bitcoin 401(k) and the option to add investments in gold, thereby allowing users to complement their crypto portfolios.
WHAT CRYPTOCURRENCIES DO THEY SUPPORT?
Bitcoin IRA provides more than just Bitcoin, despite its name. Individuals have the option to invest in several digital currencies to finance their retirement funds.
At present, Bitcoin IRA provides support for over 60 coins that can be invested in for an IRA, such as: [1]
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Stellar Lumens (XLM)
- Zcash (ZEC)
- Dogecoin (DOGE)
- Chainlink (LINK)
- Shiba Inu (SHIB)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
Bitcoin IRA has made significant progress since its inception, initially featuring just a few of the most in-demand cryptocurrencies. Presently, it provides a more comprehensive selection of unique alternative coins. Our intention is to witness the platform’s continued growth and expansion of investment options.
BITCOIN IRA FEATURES
Even though Bitcoin IRA doesn’t provide a wide range of products, it’s still worth exploring. Check out the key features mentioned below to determine if Bitcoin IRA meets your investment requirements.
The primary products of Bitcoin IRA are its crypto IRA and crypto 401(k) plans which feature tax-efficient investment opportunities for 9 renowned cryptocurrencies.
There are different types of accounts which are:
- Bitcoin IRA
- Bitcoin Roth IRA
- Bitcoin 401(k)
- Saver IRA
A minimum investment of $3,000 is required, or people can invest $100 each month through their Saver IRA with a linked bank account, but there is no limit to the amount that can be invested.
Investment-grade, US-certified gold bars can be traded by Bitcoin IRA users, granting them actual ownership rights.
BITCOIN IRA FEES TO LOOK OUT FOR
The primary charges associated with Bitcoin IRA are: [4]
- 5.99% setup fee (of your investment amount)
- 0.08% monthly fee
- 2% trading fee
- $3,000 minimum deposit
Nonetheless, the fees charged may differ depending on the individual customer. [5] If you want to determine the exact fees applicable to your circumstances, you must reach out to Bitcoin IRA and consult with their representatives.
BITCOIN IRA SECURITY
Ensuring the safety of your retirement savings is crucial, regardless of whether it’s in cryptocurrency or cash, and it’s vital to have a custodian who takes this responsibility seriously. In this regard, Bitcoin IRA provides several security measures to safeguard your investments. Let’s explore some of their security features.
- Insurance: Digital assets are insured by BitGo Trust for up to $700 million
- Cold Storage: Coins are stored safely offline
- Encryption: 256-bit SSL Encryption
- Gold is insured at Brink’s bullion vault facility as well as in transit
HOW DOES IT COMPARE?
We shall examine how Bitcoin IRA compares to some of its most well-known rivals.
iTrustCapital
iTrustCapital is another leading provider of crypto IRAs. They were founded a little later, in 2018, and are based in Irvine, CA.
iTrustCapital offers a more limited selection of cryptocurrencies to invest in than Bitcoin IRA does. However, iTrustCapital provides investment opportunities in both gold and silver, whereas Bitcoin IRA exclusively supports gold.
Compared to Bitcoin IRA, iTrustCapital requires a lower investment minimum of $1,000 and only charges a flat 1% fee on trades with no monthly fee, making it a better choice overall.
Coinbase
Although it’s not entirely justifiable to draw comparisons between Coinbase, a cryptocurrency exchange, and Bitcoin IRA, an IRA provider, a lot of people are curious to know the dissimilarities. The most significant contrast between the two lies in the accessibility of your investments.
If you buy or sell cryptocurrency using Coinbase, you can access your funds instantly; however, using a crypto IRA requires waiting until you reach the age of 59 1/2 to access your money.
If not, you will be subject to a tax penalty that negates any savings you may have obtained from investing in an IRA initially.
In general, if you plan to invest for a short period of time, opt for an exchange, but if you have the luxury of waiting for several years before accessing your funds, an IRA could be a viable option.
BOTTOM LINE
Bitcoin IRA is a reputable option for obtaining crypto IRAs that is worth considering. Nonetheless, compared to their rivals, they have higher costs and a less diverse range of options.
Bitcoin IRA Retirement Savings Accounts
By going through three quick steps, you can easily establish an account with Bitcoin IRA through their website. Additionally, transferring funds requires just a simple three-step process. According to Bitcoin IRA, numerous accounts are usually completely funded and ready for trade within three to five business days. However, if you’re transferring an IRA, your waiting period might vary based on the regulations established by your present custodian.
By transferring your 401(k), Roth IRA or traditional IRA, you can fund your self-directed IRA which contains cryptocurrency (or gold if preferred).
Bitcoin IRA Security
The idea of putting your money into cryptocurrency may appear intimidating since it’s completely digital without tangible assets or conventional cash. However, Bitcoin IRA’s state-of-the-art security measures with 256-bit encrypted SSL certification and SOC 2 Type 2 security certification serve to alleviate such worries. Multisig (P2SH) and HD (BIP32) features are included in wallets to ensure financial confidentiality.
BitGo Trust, the biggest on-chain bitcoin transaction provider, keeps assets securely in cold storage that is segregated offline. The holdings are insured by Lloyd’s of London for a maximum of $700 million.
| Bitcoin IRA Retirement Investment Accounts | ||
|---|---|---|
| Account | Features | Best For |
| Bitcoin IRA Rollover | Seamlessly roll over funds from an existing IRA or 401(k) to fund a self-directed IRA holding digital currencies. | Diversifying your portfolio with high-risk investments with the potential for excellent returns. |
| Bitcoin Saver IRA | Make small, recurring monthly cash transfers and automatically invest in your choice of alternative assets. | Getting started with cryptocurrency investments cautiously and slowly. |
Bitcoin Saver IRA
Making cryptocurrency investments accessible to almost everyone was one of the primary objectives of Bitcoin IRA. The Saver IRA accomplishes this by letting customers invest in small amounts, with a minimum of $100 per month. However, it is advisable for individuals to first acquire an adequate amount of conventional IRA assets before investing in a cryptocurrency IRA.
By means of electronic funds transfers from a checking account, you regularly contribute funds to the Saver IRA, and designate the proportion of these funds that will be invested in the digital currencies of your choice. The Bitcoin Saver IRA operates in a comparable manner to making systematic investments in a mutual fund, but allows you to customize the allocation of your investments.
Bitcoin IRA Costs
Bitcoin IRA has three fees that are charged. The service fee is a one-time payment and depends on the initial investment made. There is also a custodial fee that applies to all IRAs. In addition, a security fee is charged by Bitcoin IRA. For specific details on costs related to the amount you intend to invest, it is recommended to speak with a representative.
The comprehensive management of your cryptocurrency through IRA services is included in the initial service fee.
- Rollover IRA support services
- Setting up a self-directed IRA with BitGo Trust
- Best-in-class security storage
There was no distinction in the costs between a standard IRA and Saver IRA. To compare the specifics and charges of Bitcoin IRA products, you should consult with a representative.
Bitcoin IRA Complaints
Bitcoin IRA has received an A+ rating from the Better Business Bureau, despite two complaints being lodged with them. The first objection was due to a “user error” where the customer mistakenly entered an incorrect bank routing number. The average customer review rating on the BBB website is 3.88 out of 5 stars.
At the time of publishing, Bitcoin IRA was rated an average of 4.5 out of 5 stars by over 1,500 ShopperApproved reviews available for the company.
Investment news site Benzinga gives Bitcoin IRA a 5 out of 5 stars. Investopedia chose Bitcoin IRA as its best overall cryptocurrency IRA provider. Retirement Investments rates the company 4.5 out of 5 stars. Google reviews yield hundreds of consumer ratings, averaging 4.7 out of 5 stars.
Bitcoin IRA Q&A
Are there any penalties for rolling funds over to a Bitcoin IRA account?
Rolling over an existing qualified retirement savings account to fund your cryptocurrency IRA does not incur any penalties.
Do Bitcoin IRA representatives provide investment advice?
Bitcoin IRA representatives do not provide financial advice. They handle the coordination of IRA account transactions with cryptocurrency exchanges, custodians, and BitGo wallets. While representatives can help with matters related to digital currency, it’s ultimately up to you to decide which investments to make. For help from a qualified financial planner, consult our Financial Advisor Guide.
What are the details about buying gold with Bitcoin IRA?
Gold IRAs are also provided by Bitcoin IRA. Using their online platform, you can purchase and trade gold in your retirement account at any time. This program allows you to avoid broker and storage fees by bypassing intermediaries.
Can I transfer cryptocurrencies I currently own into a Bitcoin IRA?
Investors must purchase cryptocurrency using U.S. dollars when holding it in an IRA, as required by the IRS.
How long after creating a Bitcoin IRA account can I start trading cryptocurrencies?
After transferring funds to your account, it is possible to commence trading within three to five days.
Conclusion
Bitcoin IRA manages every aspect of investing in cryptocurrency securely through a qualified retirement account. According to reviews and website resources, Bitcoin IRA excels in educating customers about tax-free digital investments for retirement purposes. By equipping clients with the necessary tools and information, the company enables them to diversify their retirement savings and potentially earn generous returns.
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