Best Bitcoin IRA Companies
You can build financial diversity and strengthen your retirement accounts’ security by adding Bitcoin or a Bitcoin ETF to your traditional individual retirement account (IRA).
While some would argue that global financial market volatility precludes using anything except a savings account, the truth is when you diversify your IRA with alternative assets like Bitcoin, Ethereum, Litecoin, Monero, Namecoin, and other crypto tokens and coins.
The addition of digital assets, such as cryptocurrencies, instead of or in addition to tangible assets, takes cryptocurrency management expertise and added security due to sensitive data such as HEX keys. After researching many Bitcoin IRAs, we developed a shortlist of the best, comparing their efficacy and quality based on the following criteria:
We have also put together a brief FAQ to answer the most frequently asked Bitcoin and cryptocurrency IRAs questions.
Frequently Asked Questions
How Do Bitcoin IRAs Work?
You can use a Bitcoin IRA to diversify your retirement investment portfolio. This type of IRA lets you invest in Bitcoin and/or other cryptocurrencies without directly purchasing any tokens or coins. Unlike fiat currency, the Internal Revenue Service (IRS) considers cryptocurrency as property. It taxes their purchases similar to the way it does stocks and bonds.
It makes it advantageous for a Bitcoin IRA owner to use a custodian similar to a stockbroker or a financial manager to manage the retirement account. These management firms let their clients trade cryptocurrencies on their platforms. In addition, these firms offer secure offsite or online storage, known as wallets, for each clients’ digital assets.
How Should I Choose a Bitcoin IRA Company?
Carefully consider the experience and expertise of the firm, as well as the security it provides for online and offline wallets and the fees it charges. The investment firm you choose should have experience in both cryptocurrencies and IRAs. The security provided is paramount since, unlike bank accounts, it does not benefit from FDIC insurance.
Most cryptocurrencies have no fiat currency backing. Only a handful of such tokens exist. If an investment firm gets hacked, its clients could lose their total investments kept in e-wallets, but those kept in physical vaults remain safe and can benefit from insurance.
Concerning fees, consider that Bitcoin IRAs can incur added costs. Aside from the typical trading fees and administrative fees, they are often based on the total invested amount. In addition, these accounts also incur storage fees, especially with offline storage, such as a safety deposit box. All of these fees can cut into investment profitability.
Are These Investments Safe?
Just as with FOREX trading and purchasing stocks and bonds, you should know what you are doing. Cryptocurrency, like other forms of investing, comes with certain risks and uncertainties. Many investment firms recommend buying and holding cryptocurrency. This means purchasing it for a long-term investment instead of attempting to day trade, a common practice in stock trading.
Finding an experienced investment firm can help reduce the risk. Look for investment firms offering many security features and multiple layers of encoding and encryption for transactions. The firm should also provide many cryptocurrencies to choose from and traditional storage methods such as safety deposit boxes.
What Are the Key Benefits?
Like diversifying through precious metals, adding cryptocurrencies to your retirement portfolio reduces your risk by spreading it across many fintech options and blockchain businesses. Talk with your certified public accountant or financial advisor about which digital currencies could best benefit your retirement account and help you avoid heavy capital gains taxes.
How We Chose the Top Bitcoin IRA Custodians
This top three list began with a dozen Bitcoin IRAs in consideration. Our top priority was experience. We looked for firms equally experienced in IRA management, cryptocurrencies, and other alternative investment opportunities.
Next, we considered security, especially their online safety, since providing as close to hacker-proof safety protects their clients’ digital assets. Finally, the best companies offer lower fees that make it more affordable to manage a Bitcoin IRA.
Best of the Best
Final Verdict: Which Company Should You Choose to Buy Bitcoin with IRA?
Indeed, you can buy and sell crypto on your own without an IRA, but if you plan to buy and hold it, placing it in your IRA can make more sense. You can also invest in exchange-traded funds (EFTs) that include cryptocurrencies by opening these IRAs.
BitIRA ranks number two for having a reasonable opening investment and real-time trading plus terrific security. Regal Assets owns the sweet spot for investors with more disposable income. It offers a wide variety of cryptocurrencies plus precious metals.
While both of these companies are great, Coin IRA wins due to their overall reputation, excellent customer reviews, safety and security, insurance policy, plus the top customer service you could ask for. Ultimately, the final decision is yours. Choose the investment first that best fits your needs.