Best Bitcoin IRA Companies

When it comes to assets, bitcoin is the new kid on the block. Gold, cash, bonds, and equities have all been around for more than a hundred years. Bitcoin is barely a decade old.

In this definitive bitcoin IRA investors’ guide, we take a look at everything you need to know about the digital currency and how to use it to secure a happy retirement.

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Read our Advertising Disclosure.

BEST CHOICE

Coinira logo

Visit Website

  • Annual Fee: $175-225
  • Minimum Investment: $25,000
  • Promotion: 5% back on cryptos over $50k

BEST EDUCATION

NobleBitcoin logo

Visit Website

  • Annual Fee: $225
  • Minimum Investment: $2,000
  • Promotion: Buy back program

BEST CUSTOMER SERVICE

Bitcoin IRA logo

Visit Website

  • Annual Fee: N/A
  • Minimum Investment: $3,000
  • Promotion: Crypto buy back program

What is a Bitcoin IRA?

A traditional IRA or individual retirement account is a tax-deferred saving account comprising cash, stocks, bonds, and other securities.

Bitcoin IRA (sometimes called a crypto IRA) is just a new form of retirement savings account that enables you to invest in crypto assets too. 

Note here that we said “crypto assets,” not just bitcoin. Financial institutions used the term Bitcoin IRAs for brand recognition purposes. 

However, most accounts allow you to invest in a wide range of crypto assets, such as LitecoinEthereum, and Ripple, too.

How Does a Bitcoin IRA Work?

Bitcoin IRA's work in fundamentally the same way as regular IRAs. As before, you invest your pre-tax gross pay, reducing your tax liability. 

But instead of saving in cash or traditional securities, you convert your money into bitcoin. 

In practice, owners of Bitcoin IRAs appoint a custodian to manage their self-directed accounts. 

This agent converts your dollars into cryptocurrencies on the exchange on your behalf, speeding up the process.

Just remember, they do not have a fiduciary responsibility towards you, so think carefully before making an investment or following their advice.

What You Should Know Before Investing

Bitcoin IRAs are becoming increasing in popularity. Past rises in crypto prices are leading some investors to believe the trend will continue in the future. 

The value of bitcoin, for example, increased from $1,000 per coin in January 2017 to more than $19,700 by December 2017.

The returns on the upside, therefore, are impressive. There is, of course, no such thing as a free lunch, though.

The market can go up, but it is also highly volatile.

After reaching its December 2017 high, the price of bitcoin fell by more than two-thirds to $6,252 in February 2018, wiping out savings in the process. 

Owners of Bitcoin IRAs also incur substantial costs. 

It is not uncommon for service providers to charge account fees in the region of $20. 

For these IRAs to make sense, therefore, you need to have a lot of money behind you AND be prepared to accept a high level of risk.

Bitcoin IRA Rules & Regulations

  1. $6,000 limit for people under 50 years of age. There’s a limit on the value of crypto assets you can deposit in your IRA per year, just as there is for a regular IRA. Currently, the threshold for people under the age of 50 is $6,000. For those 50 or older, it is $7,000.

  2. You cannot buy cryptocurrency separately and then deposit it in your Bitcoin IRA. You must use the services of a dedicated firm to carry out the transaction for you. 

  3. You still have to pay taxes on bitcoin capital gains, even though it is a form of cash. 

  4. The price of bitcoin varies wildly from day to day and hour to hour. Thus, you can usually only trade the currency during regular trading hours. 

How Your Bitcoin is Stored & Secured

Bitcoin IRA Storage

Any wealth stored in the form of cryptocurrency is at risk of being hacked.

For that reason, many Bitcoin IRA providers advanced technologies to keep it safe. 

Some agents use “multisig wallets.” These work by insisting that two or more trusted people provide access authorization.

Other agencies use what they call “true cold storage,” where they store all your money and data on servers with no connection to the internet.

Finally, some companies provide end-to-end insurance products.

These protect you if you find your account compromised for any reason, such as theft, mistakes, fraud, or hacking.

Fees Associated with a Bitcoin IRA Rollover

If you already have an IRA and want to convert some of it to a Bitcoin IRA, you can. 

You may, however, have to pay a fee, depending on the provider. 

Most companies include the cost of rollover in their regular fees. BitcoinIRA is a good example.

3 Best Bitcoin IRA Companies in 2020

The Bitcoin IRA market is competitive - a boon for retirement savers.

There are now numerous companies offering savers the opportunity to augment their portfolios with bitcoin. 

CoinIRA

CoinIRA icon

Many of today’s leading Bitcoin IRA companies emerged from firms that initially offered investors gold-related products.


CoinIRA is one such company. It came into existence in 2017 as the cryptocurrency subsidiary of Goldco, one of the leading gold investment product providers in the nation.


It provided one of the first places where savers could add crypto to their IRAs.


The company prides itself on providing clients options with their self-directed IRAs. 

Pros

  • Provides investors with a range of cryptocurrency options besides bitcoin.
  • It is the subsidiary of Goldco - a highly trusted investment outfit with a five-star rating.
  • It makes its service easy to understand, even for people who have never considered the asset makeup of their IRA portfolio.
  • Provides full custodial services to ensure that you automatically provide accurate information to the IRS.
  • Fully insured in case of disaster or theft.
  • Protected in case of computer crashes, malware, spyware, and viruses.

Cons

  • Relatively high custodial fees.
  • Closed Saturday and Sunday.
  • Relatively few proven reviews online.
  • You can only purchase a select few cryptocurrencies.

Noblebitcoin

noblebitcoin icon

Noble Bitcoin is a Bitcoin IRA provider on a mission to make it easy and safe for retirement savers to add cryptocurrencies to their asset mix.


Collin Plume and Charles Thorngren decided to found the firm after many years in the industry. 


Offering clients a way to save in bitcoin and other digital currencies was, in their view, the best way to achieve this goal. 

Pros

  • Excellent reviews across the board.
  • Both the president Collin Plume and the CEO, Charles Thorngren, both have a wealth of experience in the industry.
  • The firm has a top rating from both BBB and BCA consumer rating agencies.
  • Provide a lot of useful education on the website about Bitcoin and the entire process. 

Cons

  • Clients only have a choice of four major cryptocurrencies. The brand does not cater to less popular products.
  • The firm does not publish its prices upfront.

BitcoinIRA

Bitcoinira icon

BitcoinIRA was the first service in the US that allowed IRA savers to convert savings into a broad range of cryptocurrencies, including Ethereum Classic, Bitcoin Cash, Litecoin, Ripple and Ethereum.


The company’s mission is to make the process of investing cryptocurrencies both simpler and safer, protecting you through each step of the transaction process.


The firm’s consultants are transparent and committed to helping you achieve your financial goals. 

Pros

  • Starting an account only takes a few minutes online.
  • You can diversify your account with a large number of crypto assets, including bitcoin and many others.
  • Rollover, traditional and Roth IRA accounts are all available.World-leading insurance and support, protecting all crypto assets in the company’s custody.
  • Fully insured in case of disaster or theft.
  • More than two billion in digital assets in wallets. 

Cons

  • Information about their products is relatively thin on their website.
  • The company does not provide a clear and definitive fee schedule.
  • You can only rollover an account if it contains more than $20,000.

F​​​​​aq

Is a Bitcoin IRA Legit?

Can you buy Bitcoin in an IRA?

Is Bitcoin IRA safe?

What is a self-directed IRA?

Can I buy Bitcoin with a self-directed IRA?

How do I invest my 401k in Bitcoin?

What factors should I consider when hiring a Bitcoin IRA custodian?

Which accounts are eligible for rollover into a Bitcoin IRA?

What other cryptos can I invest in my IRA?

Pros & Cons

Pros

Offers A More Highly Diversified Portfolio 

The more that you can diversify your portfolio, the higher your risk-adjusted return.

Cryptocurrencies may be uncorrelated with other asset classes. 

Early Investors Could See Significant Percentage Gains If Demand For Crypto Rises

When it comes to making massive returns, it always pays to be an early investor.

The sooner you can snap up an asset, the better. 

If you’d bought $10,000 worth of bitcoin in 2011, it would be worth tens of millions of dollars today.

Many people believe that we’re still early on in the story of bitcoin and other similar currencies.

The total market penetration of crypto assets remains well below one percent, meaning that there’s a lot of room to run.

The price of bitcoin could explode if it reaches the market share cash enjoys today. 

Investors Could Avoid Capital Gains

Capital gains tax applies to practically all investment.

However, there are some accounts, such as Bitcoin IRAs, that offer shelter.

You can, therefore, buy crypto assets while also protecting yourself from IRS tax take when you withdraw in the future. 

Cons

It’s not all good news, of course.

There are also cons associated with investing in bitcoin. 

Bitcoin Trades Incur A Fee

If you want to trade into or out of particular crypto assets, you have to pay a fee. 

Bitcoin IRA providers usually calculate these fees as a percentage of the value of the transaction.

The amount you pay typically ranges from 1 to 3.5 percent. 

Some providers offer a flat fee. Thus, for investors wanting to conduct large transactions, these services may be superior.

Remember, though - all fees cut into your returns. 

You May Also Have To Pay Account Maintenance And Custody Fees

Keeping a Bitcoin IRA open isn’t free.

Providers of the service incur costs, just like any other business.

Account-holders, therefore, must pay maintenance and custody fees, even if they don’t perform any transactions from one month to another. 

Moreover, these fees can be high, depending on the provider.

For this reason, it is vital to shop around before you settle on any particular account.

Prices for some accounts can be substantially lower for your purposes than others. 

The Hype Around Bitcoin Could Be Exaggerated (And Has Been In The Past)

Proponents of digital currencies believe that they will soon replace government paper as the dominant medium of exchange.

That, however, is yet to materialize.

Right now, the price of most crypto assets is volatile, and regular cash isn’t going anywhere.

Critics, therefore, caution people against plowing all their money into digital currencies.

There’s no evidence yet that it is a challenger to the traditional monetary system.

Most individuals and businesses still trust the dollars in their pocket - there doesn’t seem to be a strong case to make the switch - at least not yet. 

That, of course, could all change if regular currencies start losing their utility.

At that point, people may flip. 

But, likely, regular money will always have some residual value. 

Cryptocurrencies Face Regulatory Risk

For now, cryptocurrencies are such a small part of asset markets that governments can afford to ignore them.

In the future, though, that might not be possible.

Monetary mismanagement by central banks around the world could lead to rampant inflation. 

That, in turn, could precipitate a switch to cryptocurrencies as people search for mediums of exchange that hold their value.

And when that happens, we could see authorities crackdown.

Hopefully, that will never happen, but it could.

Governments will do whatever they can to maintain their power.

Why Should You Invest in Bitcoin?

Bitcoin is one of the most exciting asset classes on the planet. It has the potential to revolutionize the economy by changing the nature of money. 

Digital currencies are still in their infancy, but many commentators believe we’re at the start of something genuinely transformative.

Blockchain-powered digital money could potentially compete alongside government fiat, and even replace it, thanks to its inherent advantages. 

Thus, holding bitcoin today could see your purchasing power rise dramatically in the future.

If people make the switch en masse, the value of bitcoin is liable to go up, not only in terms of fiat money but goods too.

Holding on to bitcoins, therefore, could increase your quality of life in retirement. You should note, though, that investing in bitcoin is fundamentally different from investing in equities.

When you buy a share of a firm, you’re purchasing the rights to a proportional share in that company’s future profits.

Purchasing a stock is not speculation but rather taking ownership of the productive potential of the economy. 

Bitcoin is different. When you buy a coin for investment purposes, you’re essentially speculating that its value will rise in the future.

There’s no business backing it up. You’re hoping that people will move out of regular currency and into crypto, pushing up the price.

They might not.

How Do I get started?

The best way to get started with a Bitcoin IRA is to approach an accredited custodian.

They can guide you through the entire process, rolling over money from your other IRA accounts, if necessary, and ensuring proper reporting to the IRS. 

Our #1 Bitcoin IRA Custodian

Coinira logo

When it comes to customer service, fees, safety, and overall customer satisfaction, CoinIRA checks all of the boxes.

Bitcoin IRA Companies Copyright 2020