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As cryptocurrency gains more and more traction in the mainstream investment world, so too does the number of opportunities you have to invest in the space. Bitcoin and crypto IRAs are becoming an increasingly popular option for longer-term investments with some great platforms and accounts available.
Here we will look at exactly how a Bitcoin IRA works alongside some of the top companies offering these kinds of accounts to match up with your retirement plan investment needs.
The Basic of A Bitcoin IRA: How it All Works
Before investing or even choosing a company to open your Bitcoin IRA account with, it is important to get to know how the whole thing works. This is particularly true given that traditional IRAs are typically very conservative in nature, and something you will most likely want to see steady returns from for your retirement.
These are all self-directed IRAs and you will find that many focus on Bitcoin though there are some other accounts available if you are interested in the other major coins such as Ethereum. Typically you may also encounter several fees when dealing with a Bitcoin IRA account. These can include monthly maintenance fees, holding fees, and some other fees related to asset purchase and transfer that you may otherwise avoid with a traditional IRA.
In a sign of becoming increasingly mainstream, Bitcoin IRAs are still subjected to the same limitations in regard to contribution that you will have with a regular IRA, and they are also regulated in similar fashion in respect of being taxable for Capital Gains, and tradable only during standard market hours and not 24/7. Despite conforming to these regulations that may not always be the case, there are many excellent Bitcoin IRAs to choose from.
Top Bitcoin IRAs
With a solid grounding in what to expect from your Bitcoin IRA, here are 5 of the best on offer in the industry:
1. Bitcoin IRA – Best Reputation
Bitcoin IRA offers one of the most user-friendly services and all-around solutions if you want to open a highly secure Bitcoin IRA or one in a range of other major cryptocurrencies. You will find an extremely transparent provider of self-directed IRAs with the backing BitGO Trust for completely secure digital assets trading on-chain that is insured for up to $100 million for complete peace of mind.
Another standout point from Bitcoin IRA is the ease of trading and access to the platform. It is available around the clock and also accessible from your mobile as well as your computer for live trading opportunities.
Your fees at Bitcoin IRA are also conveniently rolled into one which covers everything and can be discussed with their registration team at sign-up. This means no ongoing fees and two great account options with one starting at just a $100 minimum deposit and the same monthly contribution amount.
2. iTrust Capital – Lowest Trading Fees
iTrust Capital is one of the most trustworthy services in the industry when it comes to setting up your self-directed Bitcoin IRA. This company makes the entire set-up process extremely transparent with help at every step of the way, and a very easy to use trading platform that facilitates your purchase and trading of Bitcoin and transfer to your IRA.
More than just Bitcoin you have as many as 7 major cryptocurrencies to choose from that you can add to the account as well as gold or silver. iTrust provides step-by-step help to get you started and a great range of educational content to assist you into the future as well as helping you seamlessly take care of transfers and reporting obligations.
When you do reach retirement you will be able to access your contributions in cash or the assets you have invested in. The initial account minimum here is $2,500 with a 1% trade fee on crypto, $50 on gold, and $2.50 on silver with an ongoing monthly maintenance fee of $29.95.
BitIRA is one of the best choices if you are seeking a secure place to hold your Bitcoin IRA. This is due to the fact that the company also provides secure cold storage services to ensure your investment stays completely safe until your retirement. Beyond this excellent security support you can bank on BitIRA as a top choice of major cryptocurrencies including Bitcoin, Ethereum, Litecoin, and more.
Besides the premium level security, there are a few other things that BitIRA does very well. They make sure you are provided with a top-class education section to keep you in the know about everything related to your account and trading while they also offer dedicated and knowledgeable customer support throughout. All of this alongside the big plus that BitIRA has $3.75 million FDIC insurance on cash holdings and dollar-for-dollar insurance on crypto holdings
In all, this means that you can have full confidence in the security of the company and its traditional or Roth IRA account offerings above all else. The minimum trading amount starts at $5,000 and fees are determined on an account by account basis that will require contact with the BitIRA team for more information.
4. Coin IRA
Coin IRA are one of the most experienced in the sector when it comes to offering Bitcoin and other cryptocurrency IRAs. They have been around now for more than a decade and have always been well-reviewed within the industry.
They too offer a great level of security with cold storage offered to keep your holdings as secure as possible over time. With more than a decade of experience in the industry, you will find the Coin IRA support team to be one of the most knowledgeable around on the Bitcoin IRA the company offers. One of the great bonuses and attractive points to IRA investors is the fact the company offers as much as 5% back on qualified purchases above $50,000 which can really add up over time.
If you want to get started with this experienced player you will need a minimum investment amount of $25,000 though you can expect competitive annual fees to cost you between $175 and $225 inclusive of everything for your Bitcoin IRA.
5. Alto IRA
Alto, a self-directed IRA custodian, is on a mission to provide everyday Americans the same investment opportunities long favored by wealthy and institutional investors. With an Alto IRA or CryptoIRA, you can diversify your portfolio beyond the public markets and invest in one of the largest selections of any crypto IRA with over 200+ cryptocurrencies including BTC, ETH, ADA, and MATIC.
Coins and tokens are held 1:1 in institutional-grade hot and cold storage maintained by Coinbase. The third-party custodian maintains a $320 million insurance policy against cybercrime and fraud.
Undirected cash is kept in FDIC-insured accounts. Best of all they believe transparency, this enables you to invest in cryptocurrency without the hidden fees and high minimums many crypto IRAs charge.
Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.
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