5 Best Crypto IRAs 2024 (Ranked & Reviewed)

best crypto ira

Regarding retirement planning, most people think of stocks, mutual funds, and other traditional investment vehicles. However, with the rise of cryptocurrency investing, cryptocurrency IRAs offer a new option for those looking to grow their assets in the future.

Some individuals may only look to deploy a minimum investment or retirement savings into a Bitcoin IRA and not any alternative investments. In this article, we will rank and review some of the market’s best crypto individual retirement accounts. We will look at features, pros, cons, and pricing to help you decide which cryptocurrency IRA is right for you.

 

Affiliate Disclaimer: I receive a commission if you purchase any products or services through my links on this blog post.

What Are The Best Crypto IRAs?

Here is my ranked and reviewed list of the best cryptocurrency IRAs.

1) BitIRA

BitIRA is located in Burbank, California, and was founded by team members from the Birch Gold Group. They have experience in other asset classes and want to provide more options and flexibility for their clients.

BitIRA touts security, compliance, and support as their main advantages over other cryptocurrency IRA pros. They are an end-to-end solution for their customers. They are the custodian of your self-directed IRA, which means they conduct all the administrative activity around the account. In addition, they serve as the exchange provider. This means they facilitate all buying and selling of your digital assets with the cryptocurrency exchanges. Lastly, they secure digital assets in their wallet solution.

BitIRA uses Equity Trust Company as its custodian.

The supported cryptocurrencies you can invest with at BitIRA are limited, so make sure to review the list before pursuing them as an option.

BitIRA’s pricing structure is the following:

BitIRA has a one-time service fee based on the account balance.

-Initial setup fee of $50

-0.75% Cryptocurrency Transaction Fees For Buying and Selling

-If you self-trade within their platform, there is a fee of 5% on purchases and 0% on sales.

-BitIRA Initial Assisted Transaction Fee Based on Dollar Amount:

  • Account balances between $10,000 – $15,499 – 11%
  • Account balances between $15,500 – $30,500 – 10%
  • Account balances between $30,501 – $50,500 – 8%
  • Account balances between $50,501 – $100,500 – 6%
  • Account balances between $100,501 – $150,500 – 5%
  • Account balances between $150,501 – $200,500 – 4%
  • Account balances between $200,501 – $500,500 – 3.5%
  • Account balances between $500,501 – $1,000,500 – 3%
  • Account balances between $1,000,501 and Up – 2%

BitIRA has a limited selection of 18 cryptocurrencies available within their retirement accounts.

You can sign up for a BitIRA here.

2)Alto CryptoIRA

Alto was founded in 2016, located in Nashville, Tennessee. Alto has integrated their backend with Coinbase, and this can be an easier user experience for those familiar with that platform. Alto also has access to 200+ cryptocurrencies, whereas other competitors have a little basket of crypto coins.

Alto’s pricing structure is the following:

-No initial setup fees

-Minimum Investment – $10 for a Cash Account

-Zero Monthly Fees

-1% Cryptocurrency Transaction Fees For Buying and Selling

-No Annual Fees

You can sign up for an Alto CryptoIRA here.

3)Broad Financial

Broad Financial was founded in 2004 as a real estate firm that focused on several areas, such as retail and industrial real estate, primarily on the East Coast. They expanded their product offerings in 2009. They are the leader in self-directed checkbook IRA plans, which do not seem to be a core offering at any of their competitors. They have clients in all 50 states.

Broad Financial’s pricing structure is the following:

-One-time initial setup fee of $1295 if you open up an IRA LLC or $1195 if you open up a Trust LLC.

-Madison Trust Company is Broad Financial’s custodian. Additional fees are:

-Initial setup fee of $50

-$95 quarterly maintenance fee

-Minimum investment of $500

You can sign up for a Broad Financial self-directed account here.

4)My Digital Money

My Digital Money is located in Pasadena, California, and, touts military-grade security with its partnership with Genesis. One of their key features is the stop loss and auto-order feature, which executes a buy or sell order when a particular price hits. This can also help minimize losses.

My Digital Money’s pricing structure is the following:

-Initial setup fee of $50 for Crypto IRAs

-Minimum Investment – $1,000

-Custodian Transaction Fee of up to 0.7%. Their custodian is Equity Trust Company.

-0.9% – 1.9% Platform Transaction Fee

-Zero Monthly Fees

You can sign up for a My Digital Money self-directed account here.

ITrust Capital

ITrust Capital is headquartered in Irvine, California, and has been around for 4 years. They have done over $4.5 billion of transaction volume since its inception. Their founders have been in the alternative investment IRA industry.

ITrust Capital’s pricing structure is the following:

-No initial setup fees

-Minimum Investment – $1,000

-Zero Monthly Fees for Personal Accounts

-1% Cryptocurrency Transaction Fees For Buying and Selling

-No Annual Fees

-There is a one-time fee of $75 for converting a Traditional IRA to a SEP IRA or a Roth IRA.

You can sign up for an ITrust Capital self-directed account here.

What is a Crypto IRA?

A crypto IRA is a retirement account that can buy and sell crypto assets such as Bitcoin, Ethereum, Bitcoin Cash, and other alternative investments. Crypto IRAs are self-directed, which means that the account holder has complete control over what digital assets to buy and sell. Crypto IRAs also offer tax advantages, as crypto gains can be tax-deferred or even tax-free in some cases. There can be a traditional or Roth IRA account, and you will also need a bank account to start.

What is the Difference Between a Traditional IRA and a Roth IRA?

Crypto IRAs are subject to the same rules and regulations as other types of IRAs.

A traditional IRA allows you to deduct your contributions from your taxes, but you will be taxed on withdrawals in retirement. A Roth IRA does not allow you to deduct contributions from your taxes, but withdrawals in retirement are tax-free.

Financial advisors can provide more feedback on an investment strategy and whether you may have to pay capital gains taxes. This article is not meant to serve as investment advice.

What Are The Benefits of a Crypto IRA?

There are many benefits of investing in a Crypto IRA. First, crypto IRAs offer complete control over investment choices, and this means that you can choose to invest in any crypto asset you believe will appreciate over time.

Additionally, crypto IRAs offer the potential for tax-deferred or tax-free growth. This is because gains on crypto assets held in an IRA are not subject to capital gains taxes until they are withdrawn from the account.

Finally, crypto IRAs can provide diversification for your retirement portfolio. Crypto assets tend to move independently of traditional asset classes such as stocks, bonds, or, precious metals. Investors have different strategies when using their self-directed crypto IRA, and some engage in crypto trading and others may purchase specific digital assets like Bitcoin Cash, Ethereum or, Bitcoin. It all depends on your cryptocurrency investing goals.

What Are The Risks of a Crypto IRA?

There are also some risks to consider before investing in a Crypto IRA. First, digital assets are highly volatile, meaning their value can go up or down sharply over a short period. This makes them a risky investment for those looking to preserve their capital.

Additionally, crypto assets are not insured by the FDIC (Federal Deposit Insurance Corporation) or any other government agency, which could be lost entirely in cryptocurrency accounts if the underlying platform fails or is hacked.

Make sure you withdraw your digital assets from any cryptocurrency exchange. Having offline asset storage and control of your private keys is vital, and private keys are something only you should be aware of. Do not share this with anyone else.

Cryptocurrency exchanges will ask you to create a crypto account on their platform, and you will incur trading fees. The trading fees can differ amongst cryptocurrency exchanges, so read the fine print.

Finally, there is still considerable regulatory uncertainty surrounding crypto assets, which could lead to changes in the tax treatment of crypto IRAs in the future.

Which Crypto IRA is the best?

Your best crypto IRA account will depend on your individual needs and circumstances.

Overall, it looks like My Digital Money has the best type of account with overall benefits and no significant upfront costs.

If you are looking for the lowest fees, Alto CryptoIRA may be a good option with a vast selection of digital assets to buy, sell and hold. They also use Coinbase, which is a known player in the cryptocurrency space.

BitIRA can provide an end-to-end solution if you want a cryptocurrency IRA provider to do all the work.

Broad Financial is the most expensive up-front, but they allow you to manage your digital assets. You can secure digital assets with a personal hardware wallet and buy/sell on a cryptocurrency exchange.

Ultimately, it is essential to compare different crypto IRA providers to find the one that best suits your needs.

FAQ:

Is a Crypto IRA a good idea?

A crypto IRA can be a good idea if you are looking to hedge your options and diversify outside of traditional investments such as stocks, bonds, real estate, and annuities. Inflation is at an all-time high, and purchasing power is decreasing with fiat currency. That said, cryptocurrency is speculative and can have large volatility swings to the upside and downside. It is important to conduct your due diligence on assets that you invest in.

Some of the areas to research and consider are:

  • Is there a fixed supply?
  • How much do insiders own? If they hold too much, there could be a risk of them selling as exit liquidity.
  • Is it decentralized or centralized? Centralization can lead to a single point of failure.
  • How long has the asset been in existence? Do they have a solid track record?
  • Can you contact the team, and how responsive are they?
  • Have they been hacked or compromised before?
  • Is there regulatory scrutiny around the asset?

Who does the IRS and tax reporting?

Typically, the crypto IRA companies will do the reporting for you. You can also check out different providers of Crypto Tax Software here.

Wrap Up

When deciding whether or not to invest in a cryptocurrency IRA, it is crucial to consider the potential risks and rewards. While crypto-assets can offer substantial growth potential, they are also highly volatile and come with the risk of a complete loss. Additionally, crypto-assets are not backed by any central governments or financial institutions, which could make them more susceptible to fraud or theft. Before investing in a cryptocurrency IRA, consider all the risks and rewards involved carefully. 

Website | + posts

Ammar has started several online businesses and is a blogger who loves providing quality content to help others. He is involved with affiliate marketing, domain names, NFTs, and cryptocurrencies. Check out my blog if you want to learn more about these areas and business in general.

Similar Posts