Best Crypto IRAs and Crypto Roth IRAs – How to Invest in Crypto IRAs

Best Crypto IRAs

It’s time to take your retirement savings into the future by investing in a cryptocurrency IRA. Cryptocurrencies are rapidly changing the way we do business, and online retirement accounts like IRAs are beginning to follow the trend.

There’s no doubt that cryptocurrencies and digital assets have the potential to revolutionize the financial industry forever as it becomes more and more secure and easy to use day by day. However, finding the best IRA companies that accept Bitcoin or other cryptocurrencies as deposits can be challenging. 

To remedy this, we’ve assembled a list of three of the top crypto IRA companies that we found after much research. They all offer different pros and cons, but they can help you expand your portfolio beyond stocks and bonds with ease, making them worth looking into if you’re an investor.

What Is an IRA?

An Individual Retirement Account (IRA) is a personal savings account that allows you to invest money to earn interest and then use it for retirement. You can open an IRA with any bank or brokerage firm, holding stocks, bonds, mutual funds, etc. One of the most popular types of IRAs is a Roth IRA. 

What Is a Roth IRA?

A Roth IRA refers to a specific type of Individual Retirement Account funded with after-tax dollars. The main advantage of a Roth IRA over other IRAs is that contributions are not tax-deductible, but qualified distributions are tax-free

This element differs from traditional IRAs, which allow tax deductions on contributions and taxable distributions upon withdrawal. Congress established it through the Taxpayer Relief Act of 1997, and it has since become an increasingly popular retirement savings vehicle. 

One of its main benefits over other IRAs is that it’s less restrictive. There are no income limits on who can contribute to a Roth IRA. In addition, you can withdraw your contributions at any time without penalty or taxes. With traditional IRAs, you can only cancel contributions without paying taxes and penalties if you’re at least fifty-nine and a half years old.

What Is a Crypto IRA?

 A cryptocurrency IRA is a self-directed Individual Retirement Account that allows you to invest in cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. You can fund your account with traditional retirement contributions, including rollovers from 401(k)s and IRAs.

The value of your investments will fluctuate with market conditions. It’s important to note that Cryptocurrencies are subject to market risk. They may be affected by changes in consumer sentiment regarding cryptocurrencies and other factors.  

Investing an IRA into crypto assets also involves many regulatory considerations. This part includes reporting requirements and tax implications. For example, if you hold your crypto in a custodial wallet or exchange, any earnings would likely be taxable.

The Best Crypto IRA Companies

We compiled a list of the best three crypto IRA companies based on customer satisfaction, investment options, and security. Since crypto IRAs are still in their infancy, choosing a transparent company that has built up trust over time is essential. This will ensure that your chosen company handles your investment with care and that you receive high-quality services for years to come.

Alto IRA

Best IRA for low rates and fees

Alto IRA is a Nashville, TN, tech-based option for investing in crypto and other alternative investments. The company launched in 2016 and has since provided its services to investors. 

It’s an independent firm that provides access to several investment options, including cryptocurrencies, commodities, and more. Alto IRA offers investors an alternative and more straightforward way to put their money into these investment avenues while avoiding common hassles. 

Alto connects directly with Coinbase giving you access to more than 150 different coins. You can use your retirement savings to invest in crypto using Coinbase and then have that money automatically moved into a secure, self-directed IRA account at Alto.

The organization also provides outstanding customer service and blog material to guide you through the process of creating your account and financing.

Alto claims to have a transparent pricing system free from hidden charges, commissions, and investment minimums. The company lists its complete pricing guide online for users and interested parties to view and utilize. 

The Alto-IRA fee structure includes $25 account and custody fees, 1% on trade fees, $25 Wire transfer fees during funding, and $50 in case you want to close an account. Other costs include a $75 private investment fee and a $10 to $50 partner investment fee.

Alto IRA and Coinbase use various security measures to protect their users’ assets, including two-factor authentication and cold storage. All Coinbase and Alto IRA employees go through comprehensive background checks during hiring.

Coinbase also encourages using solid passwords, and they utilize SSL encryption to secure data transfer channels between customers and servers. Finally, the company uses SQL injection filters to protect against unauthorized access to databases. These layers of protection help ensure that customer funds are safe from cybercriminals.

Pros

  • Includes a private investment option
  • A transparent and consistent fee structure
  • Many investment options via Coinbase

Cons

  • Users do not store their private crypto keys.

Bitcoin IRA 

Best crypto IRA for expert assistance

Bitcoin IRA is a full-service cryptocurrency investment firm that helps people invest in digital currencies like Bitcoin, Ethereum, Litecoin, Stellar, Cardano, etc. Founded in 2016, Its main goal is to help investors achieve their retirement goals by providing them with more efficient ways to manage their digital assets. 

Bitcoin IRA gives you a tax-advantaged way to save for retirement while investing in an exciting new asset class. The company provides self-directed IRAs with more than 60 types of cryptocurrency investment options. However, a standard account requires a minimum deposit of $3,000 to open and start trading.

When you transfer funds to your Bitcoin IRA, you can purchase digital currency in your retirement account within five days and make it part of your long-term investment strategy. The company also offers other types of investments, including a gold IRA.

Bitcoin IRA has a comprehensive knowledge center that includes an extensive resource library, videos, and webinars filled with helpful information to help novice and experienced investors make informed decisions about their retirement accounts. This section of their website features educational resources that cover everything from why you should invest in Ethereum to tutorials on how to self-trade.

Bitcoin IRA uses a 256-bit encrypted SSL trading security protocol and stores digital assets in an offline, multi-signature cold storage wallet. This level of encryption means that your coins are protected by multiple layers of security, preventing unauthorized access to your account. Users can rest easy knowing that the company has insured their funds for up to $700 million against any theft or hacks.

Pros

  • Ease of use
  • Offline cryptocurrency storage
  • Up to $700 million in digital assets covered by insurance

Cons

  • Significant setup and maintenance costs

iTrustCapital 

Best crypto IRA for security

iTrustCapital is a self-directed IRA that offers individuals looking to invest their retirement funds the potential to earn returns through crypto and gold. Established in 2018, the firm has quickly grown into one of the largest investment firms in the industry, operating with more than $1 Billion in assets under management.

After creating an account and choosing your preferred IRA type, the firm prompts you to deposit funds into your new retirement account. Investors can fund their iTrustCapital IRA by transferring an existing IRA, rolling over an employer plan (401k, 403b, TSP), and contributing new funds subject to guidelines and limitations.

iTrustCapital has a $2,500 minimum funding policy. Users below fifty years can only contribute a maximum of $6,000, while users above that age limit can deposit a maximum of $7,000. 

Clients can do this by transferring from another bank or via a check. Once you have deposited funds into your new iTrustCapital IRA, you can then invest at any time of the day in one of their various investment packages.  

The iTrustCapital platform is a stable, secure, and easy way for those seeking to invest. They have a partnership with Coinbase Custody to execute offline cold storage. Cold storage ensures that no assets are exposed online to avoid hacking or theft by malicious parties. iTrustCapital also uses a multi-layer approach to security via Fireblocks to safeguard your investment.

Pros

  • Account and trade fees are both low
  • $2,500 account minimum
  • Includes precious metal investments options

Cons

  • Limited cryptocurrencies available

Should I invest in Crypto IRA?

Diversification is crucial in any investment. A cryptocurrency IRA allows you to spread your risk over several different cryptocurrencies and limit your exposure to a single coin. Remember to take note of the risks associated with cryptocurrency, including volatility, before reaching a decision. 

Investing crypto IRA can also be highly lucrative. Blockchain technology is growing and will undoubtedly revolutionize many industries. A Crypto Roth IRA allows you to take advantage of tax-deferred growth, which means your investments grow faster than in a taxable account. These factors give investors a huge advantage over those who invest in traditional IRAs. 

Our Pick: Alto IRA

Please read our Disclaimer: Web3 Money is a paid affiliate for many of these products and services and may receive compensation. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. Financial investment involves the risk of loss. We are not financial advisors nor tax advisors. The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. Web3 Money does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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