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.
Editor’s Rating 5/5
Bitcoin IRA is the world’s first, largest and most secure cryptocurrency IRA platform used by thousands of clients. They are my #1 recommended Bitcoin IRA company.
Editor’s Rating 4.5/5
iTrustCapital is the #1 Crypto IRA platform offering cryptocurrencies, gold and silver within your retirement accounts.
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There are several benefits of obtaining a Bitcoin IRA. They provide a secure, easy, and hassle-free way of investing in cryptocurrency for a retirement fund.
Investing in Bitcoin can help diversify your investment portfolio. They hold potential for long-term gains and can help beat inflation.
The most significant advantage of investing in Bitcoin through IRA is tax saving. If you invest in cryptocurrency directly, you must pay capital gains tax when you sell it at a profit.
However, if you hold it in your IRA, all the gains you make are shielded from taxation.
If you are considering obtaining a Bitcoin IRA, there are a few things you should keep in mind before doing so. Bitcoin IRAs can cost more to set up and operate as compared to other IRAs.
You will also have to pay a fee for trading apart from the other costs. They have investment minimums, which can be fairly high.
Be sure to evaluate Bitcoin IRA providers carefully on these aspects before making a decision.
The Best Bitcoin IRA Companies for 2022
Comparison of the Best Crypto IRA Companies
A Detailed List of the Best Bitcoin IRA Companies
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.
1. Bitcoin IRA – Best Overall
Bitcoin IRA is our top pick for the best Bitcoin IRA company. It was established in 2016 and was the first IRA company to allow individuals to invest in cryptocurrency through their retirement accounts.
It offers traditional, rollover, and Roth IRA accounts as well as a Bitcoin (401k). The account opening process is easy and takes only a few minutes. You can invest in Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, and Ethereum Lite.
Bitcoin IRA is the world’s largest processor of on-chain transactions and has over 2 billion in digital assets in its wallet. It accounts for 20% of all global Bitcoin transactions.
The company takes security seriously. All digital assets are stored offline in cold storage accounts and are secured by a $100 million custody insurance from BitGo Trust.
You can begin trading within three to five days of transferring the funds. The platform allows you to buy, sell, or trade 24×7. The minimum investment required to set up an account is $3000. However, there is no cap on investment.
The company is not transparent about its pricing structure. There is a one-time investment fee that depends on your initial investment amount. They also charge a custodian security fee and other charges on asset conversion, buying, and selling.
2. iTrustCapital – Lowest Fees
iTrustCapital is our top choice for the company with the best trading platform due to its low cost and transparent fee structure, and easy-to-use interface.
Established in 2018, the company allows users to buy and trade cryptocurrencies and precious metals such as silver and gold through their retirement accounts. It offers traditional, Roth, and SEP IRA accounts.
Customers have a choice of investing in Bitcoin, Ethereum, Polkadot, Bitcoin Cash, Litecoin, EOS, Stellar, and XRP.
You can complete your IRA account application in minutes. Once you finish setting up the account, you can trade round the clock from your dashboard. All trades get executed in real-time.
You need to invest a minimum of $2,500 to set up your crypto IRA account. The biggest advantage of iTrustCapital is its transparent pricing and low fees. There are currently no monthly fees and a 1% trade fee.
The company has partnered with an institutional wallet provider named Curv to provide protection of digital assets through cryptography. Customer crypto assets are further protected by a $50 million insurance cover from Munich Re.
3. BitIRA – Best Security
BitIRA takes the top spot for security. Though it started in 2017, the company has set itself apart by offering the highest security levels. They use multi-encryption coding for each of your investments.
They also offer proper cold storage. While offline, your funds are stored in grade 5 nuclear bunkers, so they are inaccessible to hackers and cybercriminals. No other digital IRA company offers this feature.
BitIRA also offers end to end insurance coverage for your digital assets, and this insurance is comprehensive. It covers your assets right from their time of issue through transit and storage.
The company offers traditional SEP, Roth, and SIMPLE IRA accounts. It allows you to invest in Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, ZCAsh, Stellar Lumens, and Bitcoin SV.
The account opening and set-up process are slightly longer here. It can take anywhere between a week to three weeks for your account to be ready to purchase cryptocurrency.
The fees charged by Bit IRA are also higher, owing to some of the security features they offer. They charge a $50 account set-up fee, $195 in annual maintenance charges, and 0.05% of your total assets per month in storage fee.
Currently, you need to invest a minimum of $5,000 when opening an account. They also charge a custodial fee which varies based on your account.
4. Coin IRA – Best Pricing
Many of today’s leading Bitcoin IRA companies emerged from firms that initially offered investors gold-related products.
Coin IRA is one such company. 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.
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.
A 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.
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
- $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.
- 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.
- You still have to pay taxes on bitcoin capital gains, even though it is a form of cash.
- 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
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. Bitcoin IRA is a good example.
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 to Invest in a Bitcoin IRA
Here are the steps you need to take to invest in a Bitcoin IRA:
Step #1: Choose a Bitcoin IRA Provider
Several companies now offer Bitcoin IRA accounts. The first step is to research these companies and evaluate the benefits they provide and the costs associated with them. Choose the one that is best suited to your needs and budget.
Step #2: Begin Rollover or Transaction Process
Once you’ve finalized your Bitcoin IRA provider, you need to set up an account with them. This process is fast and straightforward. You can then fund this new account through a rollover, transfer, or cash contribution.
Step: #3: Invest in Bitcoin or Crypto
Depending on your provider and the funding process, it can take between three days to three weeks for your account to be ready for transactions. Once it is ready, you can invest in Bitcoin or any other cryptocurrency offered by your company.
A Bitcoin IRA can be a great way to invest in cryptocurrency for retirement. It offers an easy way of diversifying your investment portfolio and the potential for capital appreciation along with tax advantages.
It is crucial to choose the right Bitcoin IRA provider that matches your needs and suits your budget. Research the various options available and evaluate them on factors such as security, fees, and user experience.
With our list of recommendations for the best Bitcoin IRA companies, you are sure to find one that can help support your retirement investment needs. Check any of these companies out today.