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What is a Bitcoin IRA?
Bitcoin IRAs are a type of self-directed IRA crypto accounts offered by some of the best online brokerages and trading platforms. Investors can hold alternative assets, like bitcoin and other cryptocurrencies, alongside traditional investments in their retirement portfolio, hoping for long-term gains.
Bitcoin IRAs are only available through specialized custodians equipped to track and manage the storage and security of these digital assets.
Why Choose a Bitcoin IRA?
Crypto and retirement investing have become popular, especially as brokerages like Fidelity have offered bitcoin as a 401(k) investment choice. However, several companies also offer crypto trading through self-directed IRAs.
A bitcoin IRA can be an alluring investment option for those who want to avoid capital gains taxes while building wealth. You’d be subject to capital gains taxes for regular crypto transactions without an IRA. But self-directed IRAs eliminate those extra costs (or at least defer them).
Adding bitcoin to your retirement portfolio can further diversify your holdings and mitigate risk. Cryptocurrencies can also hedge against inflation, similar to other alternative investment options. Plus, the possibility of higher returns makes crypto investment alluring despite the significant volatility and risk of investing in decentralized currencies.
Best Cryptocurrency IRAs
- BitcoinIRA: Best Overall
- BitIRA: Best for Account Security
- Alto CryptoIRA: Best Investment Selection
- Coin IRA: Best Investor Experience
- iTrustCapital: Best for Low Fees
Compare the Top Bitcoin IRAs in 2024
The best bitcoin IRAs provide custodial services, storage options, and, in some cases, 24/7 trading access. They are popular for folks looking to avoid capital gains taxes. Cryptocurrency exchanges offer a range of crypto availability, account security, low fees, mobile access, and more.
Here are the best bitcoinIRAs provided by Business Insider’s editors in 2024.
Best Bitcoin IRA Overall
Bitcoin IRA
Fees
2.99% one-time deposit fee ; 2.00% transaction fee; and a 0.08% security fee billed monthly
- Bitcoin, ethereum, litecoin, and several other cryptocurrencies available
- You can invest in one coin or a blend of multiple coins
- Supports IRA rollovers, traditional IRAs, Roth IRAs, SEP IRAs, and 401(k)s
- $700 million insurance available
- You’ll need to speak with a company representative to learn set-up fees for your account balance
- High trading fees
Product Details
- Features: 24/7 trading, offline storage, and $700 million insurance
- Better Business Bureau rating: A+
- Awards: Earned the Mobile Web & App of the Year award for the 2022 Globee American Best in Business Awards
Bitcoin IRA is an industry-leading crypto IRA platform that supports 24/7 trading of 60+ cryptocurrencies, including bitcoin, ether, litecoin, cash, and digital gold. Set up an account in minutes for secure cold wallet storage, 256-bit encrypted SSL trading, and up to $700 million of digital asset insurance.
Bitcoin IRA covers support services for retirement fund rollovers (Bitcoin IRA lets you rollover funds from traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, 403bs or 401(k)s), security storage, and setup costs for a self-directed IRA with BitGo Trust.
Regarding crypto storage, Bitcoin IRA stores your assets with BitGo Trust.
What to look out for: Fees and pricing aren’t straightforward. You’ll need to contact a company representative for more information since some fees vary based on your balance.
Best Bitcoin IRA for Account Security
Best for account security
BitIRA
Fees
$50 account setup, $195 annual maintenance; 0.05%/month offline storage
- Several supported cryptocurrencies
- Multi-factor authentication to protect crypto assets
- Offline cold crypto storage
- Costs include a $50 setup fee
Product Details
- Features: Several supported cryptocurrencies, offline storage, $100 million custody insurance
- Better Business Bureau rating: A+
BitIRA is another popular IRA option for investors looking to add bitcoin and other virtual assets to their retirement accounts. It supports 15+ cryptocurrencies. These include bitcoin, bitcoin cash, and ether.
BitIRA heavily prioritizes security and is equipped with multi-encryption, end-to-end insurance coverage, and offline storage for digital assets. Additionally, BitIRA provides $100 million in custody insurance to shield you against theft, destruction, or loss.
It has a $5,000 minimum to open an account.
What to look out for: BitIRA’s high minimum requirement is one of the largest drawbacks of the platform.
Best Bitcoin IRA Investment Selection
Best investment selection
Alto IRA
Account Minimum
$10 cryptocurrencies
Fees
Alto CryptoIRA: 1% per crypto transaction, $50 account closure fee, and $25 for outbound wire transfers; Alto IRA: $10/month account fee or $100/year (with two months free), $10 partner investment fee, $50 account closure fee, and $25 outbound wire transfer fee
- Low fees
- 200+ cryptocurrencies
- Real estate, private equity, venture capital, fine art, and other alternative assets available
- Platform utilizes a combination of hot and cold storage
- Some investments are reserved for accredited investors
- Hawaii residents can’t open an account
Alto IRA offers low fees and access to 200+ of cryptocurrencies and other alternative investment options, including fine art, startups, real estate, private equity, and more.
It utilizes hot and cold storage and is integrated with Coinbase to access the Coinbase Exchange. It offers tax-free cryptocurrency trading, market and limit orders, and 24/7 trading access. Alto IRAs are available as self-directed traditional or Roth IRAs.
What to look out for: Some of Alto IRA’s investments are reserved for accredited investors. Not available for Hawaii residents
Best Bitcoin IRA for Investor Experience
Best for expert assistance
CoinIRA
Fees
1.25% buy trades; 1% sell trades
Account Types
Individual accounts; IRAs
- Supports bitcoin, ethereum, litecoin, and other cryptocurrencies
- Offers Cryptocurrency Self-Trading platform that lets users easily place their own trades
- You can work with consultants if you have any questions
- No longer offers multiple wallet options; mainly uses Equity Trust to secure digital assets through offline storage
Product Details
- Features: Crypto educational resources, consultant support, and crypto self-trading platform
- Better Business Bureau: A+
CoinIRA is a low-cost cryptocurrency IRA company that focuses on customer education and ensuring a positive investor experience. The platform provides traders with consultants who can assist with crypto-related questions. It also offers a free crypto IRA guide about tax benefits, crypto retirement savings, inflation hedging, and more.
CoinIRA requires a $5,000 minimum starting investment, which is fairly high, but there are no start-up and maintenance fees or subsequent deposit requirements. There are no maximum purchase limits either.
Cryptocurrencies are stored in cold-wallet storage. You can also invest in precious metals through CoinIRA, which can be traded in a no-cost Digital Asset account or a separate Precious Metals IRA.
What to look out for: CoinIRA no longer offers multiple digital wallet options
Best Bitcoin IRA for Low Fees
iTrustCapital
- 25+ cryptocurrencies; gold and silver available
- No monthly fees or setup fees; 24/7 trading
- Self-trades in IRAs are tax-free
- You can use several different methods — including IRA transfers and employer plan rollovers — to fund your account
- High $1,000 minimum
- No access to human advisors
Product Details
- Features: Cryptocurrencies and precious metals investing, 24/7 crypto support, and secure storage and insurance
- Awards: Named Innovator of the Year and Best Crypto Investment Platform in the 2021 IMA Impact21 Awards.
iTrustCapital offers dozens of cryptocurrencies for traders interested in building long-term wealth through a bitcoin IRA. This affordable crypto IRA platform also offers traders low-fee gold, silver, and other precious metals to diversify their portfolios further.
You won’t be charged a monthly, AUM, or broker fee. However, the platform does charge a 1% flat fee per transaction. There’s a minimum $1,000 to open an account.
You can fund your account using various methods, including IRA transfers (iTrustCapital supports traditional, Roth, SEP, and SIMPLE IRAs) and employer plan rollovers (available for 401(k)s, 403(b)s, thrift savings plans, and 457 plans).
iTrustCapital is partnered with third-party custodian Fortress Trust Company.
What to look out for: The cryptocurrency is limited compared to other platforms on this list.
FAQs
Bitcoin IRAs are good for cryptocurrency enthusiasts who are also retirement-focused. If you believe that cryptocurrencies, like bitcoin, will have a long-term value that can help you build wealth in the long run, you’re a good fit for a bitcoin IRA. However, cryptocurrencies are highly volatile assets with significant risk. To protect your retirement portfolio, diversify your asset allocation across other market sectors to decrease your susceptibility to the market.
A bitcoin IRA can be risky due to the volatile nature of cryptocurrencies. Although volatile to the market, traditional assets like stocks and bonds are more closely regulated and do not fluctuate nearly as much as crypto. With a bitcoin IRA, there is a higher chance that your assets will drop in price or value.
You can set up a bitcoin IRA with investment platforms offering crypto-linked IRAs as a retirement savings account option. Once you decide on a bitcoin IRA provider, meet the platform’s minimum investment and other eligibility requirements.
Bitcoin IRA is the overall best IRA for crypto. Bitcoin IRA is a robust trading platform for investors to build retirement savings with top-performing cryptocurrencies like bitcoin and ethereum. However, there are other good bitcoin IRA options like BitIRA and CoinIRA.
Bitcoin IRA is a legit investment platform for investors interested in building up retirement savings by investing in crypto like bitcoin. Bitcoin IRA requires a Bitcoin IRA – Minimum Deposit minimum to open an account. It’s not a good choice for retirement investors wanting to invest in other assets like stocks and ETFs.
Why You Should Trust Us: Our Methodology
Using Business Insider’s rating methodology for investing platforms, we researched numerous bitcoin IRAs to find the best options for cryptocurrency selection, fees, security, features, and more. Investment apps are given a rating between 0 and 5.
On the fee side, we paid close attention to account minimums and account setup fees/advisory fees. We also considered customer service availability when narrowing down platforms.
This article was originally published by a www.businessinsider.com . Read the Original article here. .