Traditional individual retirement accounts (IRAs) have been traditionally considered the best way to provide future financial security. However, with the changing world, the financial markets and investment scenarios have changed as well. It is because of this change that some investors are looking to diversify their IRAs with alternative assets, including Bitcoin and other cryptocurrencies.
There is a long list of Bitcoin IRA companies and choosing a company that is secure, trustworthy, and offers you profits can get a little complicated at times. In this article, we'll learn what makes a custodian great and look at the pros and cons of the best Bitcoin IRA companies in the U.S. to help you make the right decision for your future financial security.
Cryptocurrency IRA: What Is A Bitcoin IRA?
A Bitcoin or crypto IRA is a self-directed IRA that holds investments in cryptocurrency. The type of account is a self-directed IRA.
Unlike traditional IRAs, self-directed IRAs allow you to hold investments in cryptocurrency rather than cash or investments in precious metals, stocks, or bonds.
What Are The Benefits Of A Bitcoin IRA Or A Crypto IRA?
Like any other traditional individual retirement account, cryptocurrency IRAs come with many benefits.
Tax Benefits
If your digital currency is held in a traditional cryptocurrency IRA, its growth is tax-deferred, and if you open a Roth cryptocurrency IRA, the growth is tax-free.
No Bank Interference
Big banking institutions can’t touch your digital investments.
Diversification
Unlike other traditional retirement savings plans, your investments in a Bitcoin IRA or a cryptocurrency IRA are open to more than just stocks and mutual funds.
Limited Inflation
Artificial inflation of supply is impossible because of the adaptive scaling of digital currency.
Security
Transactions in a Bitcoin IRA or a cryptocurrency IRA, are secured through multiple security features and confirmed by a peer-to-peer protocol on a blockchain network.
How To Buy A Bitcoin IRA Or A Crypto IRA?
While cryptocurrency, in general, can be procured via cryptocurrency exchanges like Coinbase and Gemini, the process of buying a Bitcoin IRA is a little different albeit simple.
Self-directed IRAs are directly managed by account holders as opposed to financial advisors or money managers. These IRAs are only available through firms that specialize in the type of asset you’re interested in.
To open a Bitcoin IRA, you’d have to work with special custodians who can deal in cryptocurrency. The process to add Bitcoin to your self-directed IRA is as follows-
- Open a self-directed IRA
- The new account is funded by a rollover or a transfer
- Complete a Bitcoin allocation order
It must be noted that one cannot add Bitcoin into a pre-existing/ traditional IRA that holds your stocks, mutual funds, bonds or ETFs. It is necessary to first set up a self directed IRA (SDIRA) in order to add crypto to your IRA.
Which Is The Best Cryptocurrency For Investing?
Bitcoin
Bitcoin, also regarded as the original cryptocurrency, has been around since 2008 and is the blue-chip cryptocurrency.
Number of coins: 21 million
Ethereum
Ethereum followed by Bitcoin, is the second-largest crypto by market capitalization.
Number of coins: No limit
Litecoin
Litecoin is nearly identical to Bitcoin regarding transfer and coding but is faster and cheaper.
Number of coins: 84 million
Ripple
Ripple is the corporate cryptocurrency. Ripple has worldwide offices and markets itself to banks and other financial companies as a secure digital currency with lower fees.
Number of coins: 100 billion
Best Bitcoin IRA Companies For Investment
#1 Bitcoin IRA: Best Overall IRA Company
With 24/7 trading, secure cold storage for digital assets, and $100 million of insurance protection, Bitcoin IRA now ranks as one of the best Bitcoin IRA companies. This is the best choice for your retirement accounts and self-trade cryptocurrencies. One of the most notable highlights is that this company provides its users with offline stored investments.
Pros
- Easy to set up, trade, and track investments
- Secure offline digital asset storage
- BitGo handles custody using cold storage
- Digital assets insured up to $100 million
- Offline asset storage is 100% guaranteed
- Earn up to 6% on cash and crypto
Cons
- Investment in cryptocurrencies is a high risk
- High setup and maintenance fees
- Your preference for cryptocurrency prices may vary
#2 Coin IRA: Best Investor Experience Among IRA Companies
Coin IRA is an offshoot of Goldco, a Precious Metals IRA company. They are a facilitator company, that is, they are not an exchange, bank, custodian, or wallet themselves but handle the communication between these entities and the investor. The customer just needs to contact them to begin a transaction, and then the rest of the process will be managed by Coin IRA.
Pros
- Cryptocurrency consultants available
- Fund security features
- Multiple secure wallet options
- Track asset transactions
- Multiple types of cryptocurrencies
- Low fees
Cons
- Distributions of IRA before the age of 59 ½ can result in penalties
- Once you turn 72, takes distributions from cryptocurrency IRA
- $20,000 minimum to open a cryptocurrency IRA account
- No fees listed on the website
#3 iTrust Capital: Best Rates And Fees
If you are looking for tax benefits with your Bitcoin IRAs, iTrust Capital is a great place to start. They offer you the lowest minimum start amounts and trade amounts. A lot of people also benefit from their 24-hour transaction services, which are available at a 1% transaction fee for unlimited storage and cryptocurrency exchanges.
Pros
- Low trading fees
- Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), etc.
- Affordable account fees at about $30 per month
- 24-hour transaction services
- Pricing: $29.95 monthly service fee and a 1% charge on crypto trades
- Ability to acquire precious metals
- Annuities liquidate without tax implications
- Minimum investment of $1,000
Cons
- Time-consuming account setup
- No financial advisors on staff
#4 BitIRA: Most Secured IRA Company
BitIRA is one of the most secure retirement investments and is suited for people who desire the highest security during cryptocurrency trades and the best storage options for their cryptocurrencies. Their five-layer security includes offline cold storage wallets, multi-factor authorization, grade-5 guarded nuclear bunkers, $1 million insurance coverage, and Level II Cryptocurrency Security Standards (CSS).
Pros
- Digital currency is stored in an encrypted crypto wallet for top security
- Decentralized from large banking institutions
- Insured cold storage
- Multi-encryption encoding of the transactions
- Six digital currencies for placement in an IRA
- Full insurance coverage for digital assets
Cons
- Presence of investment risks
- Must open accounts with a digital currency specialist
- Rollovers from a 401(k) are not eligible for a Bitcoin IRA
#5 Regal Assets: Best Variety Of Cryptocurrency
Regal Assets offers individual retirement accounts that allow clients to invest in both hard assets, such as precious metals like gold and silver, as well as digital assets including all popular cryptocurrencies.
Pros
- Investments in all popular cryptocurrencies and precious metals
- Transparent fees and commission schedules
- Flat-rate fees
- Digital assets insured up to $250 million
- The company provides local and offshore storage options
Cons
- Must open accounts with a representative
- An initial investment of $25,000 required
- Risks for precious metal and cryptocurrency investments
- Penalized on missing the 60-day redeposit period for retirement accounts
#6 BlockMint IRA: Best For Newbies
In order to invest some of your money, you need experience. BlockMint IRA was well aware of newbies in the world of cryptocurrency. They offer experienced guidance and secure, easy-to-use tools to make the process of setting up a cryptocurrency IRA easier. The website also presents a significant amount of information, as well as an investor kit to explain Blockmint’s three-step cryptocurrency IRA setup process.
Pros
- Advisors offer help for the cryptocurrency IRA accounts
- No knowledge needed
- Variety of supported cryptocurrency
Cons
- Hefty fees
- The minimum investment is $10,000 per type of coin
What Makes These Companies The Best Bitcoin IRA Companies?
There are a lot of factors that can make a company rank among the best bitcoin IRA companies.
- Low transaction fees
- Good reputation
- Customer service
- Ease in setting them up
Final Words On Choosing The Best Bitcoin IRA Companies
Like most things, there is certain information you need to keep in mind before you finally decide on investing in Bitcoin IRA. Before you invest, it is important to understand which ones offer the best expertise, security, and support. The lack of regulation of security rules, fees charged, or transaction guarantees, can make it difficult for you to find a company with strong and transparent security policies.
ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!
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