A Bitcoin IRA provides you the opportunity to have Bitcoin, Stellar Lumens, Ethereum, as well as other cryptocurrencies, for investing in your retirement account. Some investment specialists may not approve of the strategy to have cryptocurrencies (which are inherently risky in nature) in your retirement account. However, with the increasing popularity of these digital currencies in recent years, a number of Bitcoin IRA companies have come up, and the investor is spoilt for choice.

Both Traditional IRA and Roth IRA come with tax benefits that can prove valuable during your years of active investing and even after you retire. After a meticulous search of the web, and after carefully examining the details of the top Bitcoin IRA companies that investors can seek assistance from, we have created a shortlist of the best Bitcoin IRA companies to invest in 2022.

Bitcoin IRA (Best On An Overall Basis)

The reason why Bitcoin IRA can be considered as the best choice is because of its balanced and comprehensive offering that includes support for multiple account types, ability to trade in cryptocurrencies that are most popular, the potential of earning interest on crypto invested, and also a platform that facilitates fast and easy trade.

Pros and Cons

  • Sign up and then fund your account within a few minutes only
  • Impressive security related to cold storage as well as insured accounts
  • Ability to trade online or via app 24/7
  • Lack of transparency in pricing
  • Limited range of currencies supported

If you are searching for a cryptocurrency IRA, then Bitcoin IRA might be a good choice as it offers a cryptocurrency IRA account that addresses the needs of a wide spectrum of users. – from newbies to those with years of experience. Bitcoin IRA specializes in the domain of Bitcoin IRAs and offers a wide range of IRA accounts as also a Bitcoin 401(k). Signing up and creating an account takes not more than 5 minutes.

Considering the price charts of the company, support is available for Bitcoin, Litecoin, Zcash, Cardano, Ethereum, Stellar Lumens, and Bitcoin Cash. You can place trades 24/7 in real time. Your account is securely held in a digital wallet. Assets held by Bitcoin IRA customers are stored in an offline cold storage via BitGo Trust, and it offers an insurance policy up to a limit of $700 to make your assets more secure.

However, Bitcoin IRA has a non-transparent pricing policy, which is its biggest downside. It can vary according to the amount of your initial deposit when you open your account. You will need to contact the company and talk to a representative about fees as applicable to the type of account that you want to open. Note that there is a minimum investment requirement of $3,000, although no upper limit for investment, for your Bitcoin IRA account.

iTrustCapital (Best For Large Deposits)

iTrustCapital is easily the preferred choice for sizeable balances because of its low fees, compared to other providers, and zero monthly fee.

Pros and Cons

  • Relatively small trade fee of 1% for cryptocurrencies.
  • Zero monthly fee.
  • 24/7 support available for self-directed trading.
  • Requirement of a minimum deposit of $2,500 to open an account

iTrustCapital offers IRA accounts with support for not only cryptocurrencies but also precious metals. You are free to select your investments for your account from a list of over 25 cryptocurrencies as well as gold and silver. Cryptocurrencies currently supported include Bitcoin, Ethereum, Litecoin, EOS, Bitcoin Cash, and more. The minimum requirement of $2,500 to get started makes it ideal for experienced investors with deep pockets and not for those new to the game.

Pricing is comprehensive and transparent, which is important for big investments. No monthly fee is charged to maintain your account, although a 1% fee is there for trading in cryptos. That is way cheaper than what many competitors charge. Accounts with cryptocurrencies are held via Coinbase Custody, with whom there is a custodial relationship. Balances are insured in order to protect them. 

The transparency in pricing stands out as a big plus. In addition, the company assures a high level of security by providing cold storage. The combination of transparent and low pricing, coupled with a list of cryptocurrencies that are most popular, make it an attractive choice for many looking to put crypto into an IRA.

BitIRA (Best In Terms Of Security)

BitIRA would be the best option for those that are security conscious since it makes use of cold storage for protecting your assets, and also offers comprehensive insurance.

Pros and Cons

  • Cold storage implies that your crypto assets stay offline, rendering them immune to hackers or other types of cyber offenders.
  • End to end insurance ensures that the value of each customer’s IRA account is protected against a host of risks.
  • For a self-directed account, support is offered for 9 popular cryptocurrencies.
  • Charges fees without sharing them.
  • Support is absent for some popular currencies.

BitIRA, a provider of self-directed cryptocurrency IRA with a special emphasis on security, stands out as the best choice in this category. Your account receives protection through online security tools like multi-factor authentication and encryption. The company takes several additional steps for protecting your investments – like offering high insurance levels and using cold storage. There are custodial partnerships with Preferred Trust Company and Equity Trust Company through which funds are held.

Cold storage refers to the process of holding your crypto assets on an offline hardware wallet. The wallet is only available to someone who can physically access it and possesses the unlock codes. Aside from that, BitIRA also provides end to end insurance policies that are comprehensive and covers a broad range of risks. These are all $100 million policies. That is way more than what is offered by SIPC, FDIC, or most reputed brokerages. 

The company offers Traditional IRA, Roth IRA, SIMPLE IRA, and SEP IRA. Currently, support is available for Bitcoin, Aave, Litecoin, Ethereum, Bitcoin Cash, Stellar Lumens, Chainlink, Ethereum Classic, and Zcash. Although BitIRA charges account fees, it does not share them – saying they vary on a case-by-case basis. However, if your prime concern is security, you would not mind the extra cost.

Broad Financial (Best For Self-Directed Accounts)

Broad Financial can be strongly recommended because of its flat and predictable annual fee, and the fact that you get full “checkbook control” with respect to your cryptocurrency wallet – which allows you to buy and sell any currency that you fancy.

Pros and Cons

  • Freedom to use any wallet provider or cryptocurrency exchange.
  • Manage your investments directly.
  • Flat and predictable annual fee.
  • Fairly steep setup fee.
  • You are responsible for your security.

With Broad Financial, you get the unique option of having full checkbook control over the crypto assets that you invest in. After you have signed up for a new account, the company, with its own checkbook, creates a business entity. Any purchase made using the checkbook is considered to be an asset that is owned by the IRA. The account is primarily meant for cryptocurrencies, but you are free to purchase private stock, real estate, and other assets also with the IRA.

An account setup fee of $1,295 is chargeable for getting your new IRA LLC. In addition, you need to pay $380 annually for keeping the account. After funding your account, you are allowed to use the IRA for investing in cryptocurrency. This investment, from a legal standpoint, is part of your retirement account. It is subject to the same rules as would be applicable to any other Traditional IRA or Roth IRA.

This implies that you are free to select pretty much any cryptocurrency that you want – ranging right from the most popular, which is Bitcoin, to those in the obscure category – which, of course, carry significant risks. After buying the coins, you are solely responsible for their storage, whether that be in your personal offline wallet or a secure online cryptocurrency account. The responsibility for your purchase or the safe keeping of your crypto assets rests squarely on you.

BlockMint (Best For Those New To Cryptocurrency)

BlockMint is the company of choice and stands out as the best Bitcoin IRA for investors new to or without substantial prior experience in dealing with cryptocurrency. This is because BlockMint has advisors that will help choose your crypto portfolio.

Pros and Cons

  • Advisors provide assistance in choosing your crypto portfolio.
  • Cold storage provides better security to your assets.
  • Transaction fees for buying cryptocurrencies very high.
  • Initial investment of $10,000 required.

BlockMint is suitable for those who would rather not enter into cryptocurrency trades on their own and essentially want an expert to operate their entire account on their behalf. Although the decision-making on crypto trading is left to the company’s professionals, you need to pay a hefty fee for the service. BlockMint will charge you 15%, which is in addition to other fees, to purchase.

A few of those other fees include a purchase fee (2.5)% and sell fee (1%), an annual maintenance fee ($195), and a monthly storage fee (0.05%). All of these fees are levied by Equity Trust, the account custodian.

As per the BlockMint website, support is available for Bitcoin, Litecoin, Ethereum, Ripple, Ethereum Classic, and Bitcoin Cash. It is not clear if support is offered for Ripple XRP – since the SEC effectively shut down the asset. In any case, the list is quite modest but does include coins that are most popular.

Despite the steep (as well as numerous) fees, the advantage you get from BlockMint is that everything is done for you. No computer skills are necessary to operate BlockMint. You can get started by phone or online, and BlockMint provides assistance, for funding your account, with any IRA or 401(k) rollovers.

BlockMint, operating since 1997, is owned by Lear Capital, which is a company having extensive experience in investments related to gold and other precious metals.

Our Best Recommendations For 2022

Cryptocurrencies are inherently quite risk prone and volatile, which means that not everyone might find them suitable. If you feel the uncertainty associated with cryptocurrencies is unacceptable, it would make better sense not to in involve your retirement account with such digital currencies. However, if you find them attractive and want to invest for a more promising future, you could well choose any of the following providers to get you started with an IRA based on Bitcoin.

  • Bitcoin IRA is a stellar provider that offers something for everyone.
  • Broad Financial stands out for the flexibility it provides through checkbook control. 
  • BitIRA needs a special mention for the high security standards it maintains.

In order to be able to pick the Bitcoin IRA that works best for you, carefully examine the list of available currencies, features, and fees associated with each provider.

Frequently Asked Questions About Bitcoin IRAs

What Exactly Is A Bitcoin IRA Company?

A Bitcoin IRA company refers to a business that makes it possible for you to open and maintain an individual retirement account (IRA) with cryptocurrencies as assets – Bitcoin being the most popular crypto asset.

How Will A Bitcoin IRA Work?

After opening a Bitcoin IRA, you are allowed to buy and sell cryptocurrencies like Bitcoin, Litecoin and others. The process is not unlike buying and selling stocks or funds using your retirement account through a traditional brokerage.

Most legal residents of the United States are allowed to open an IRA, for which a Social Security number is required along with some contact details. An IRA can be opened at any time, although with annual limits on how much can be contributed as specified by the IRS. In case you already have a Traditional IRA, Roth IRA, 401(k), or any other retirement account, if you so prefer, you may be permitted to roll over the balance into your fresh Bitcoin IRA.

Traditional IRAs get funded from pre-tax dollars, meaning taxes are deferred upon the time you withdraw upon retirement. Although contributions to Roth IRAs are taxed, future withdrawals qualify as tax-free money.

What About The Safety Of Bitcoin IRAs?

Companies providing Bitcoin IRAs usually ensure the security of the account, and offer insurance too. However, cryprocurrency is a relatively new investment destination and viewed as a high risk asset. It is possible that crypto investments may lose most or all of their value at any time in the future. Hence, diligent research is necessary from your end to take an informed decision on if you want to get involved in them – especially with your retirement account at stake.

How Are Bitcoin IRA Companies Different From Traditional IRA Companies?

IRA accounts provided by traditional brokerages usually focus on stocks, ETFs, mutual funds, bonds, and other financial instruments commonly traded in the marketplace. Bitcoin IRA companies, on the other hand, permit you to hold, buy, and sell virtual currencies rather than stocks. 

A number of traditional brokerages have started providing support for cryptocurrencies, though this trend is yet to pick up speed with the majority of mainstream brokerages. Anyone seriously contemplating investment in cryptocurrency for retirement would be well advised to choose a recognized company offering cryptocurrency IRA services.

How Much Investment In Bitcoin Is Sufficient For Retirement?

Actually, there no specific amount of Bitcoin (or, for that matter, any other crypto asset) that could guarantee your comfortable retirement. Your financial requirements are dependent on your lifestyle and, of course, your budget. Moreover, a lot depends on the market value of the currencies that you invested in when you retire.

How The Best Bitcoin IRA Companies Were Chosen In Our List

To select the best Bitcoin IRA companies, we decided to focus on key aspects such as reputation, security, features offered, and cost. The crypto industry is still evolving and a number of less-than-reputable players also participate in the offerings. Therefore, for us it was crucial to scrutinize each company’s reliability and history before recommending any Bitcoin IRA provider. When picking a Bitcoin IRA company for your retirement portfolio, you would do well to focus most on their reputation, cost, and security aspects.

The Bottom Line

If you invest in cryptocurrencies, DeFi (decentralized finance), or other ICOs (Initial Coin Offerings), you must keep in mind that these are significantly speculative and risky assets. Also, the markets in which these digital currencies are traded can get quite rough. Therefore, be sure to invest in crypto only if your risk appetite accommodates such investment. If in doubt, do not hesitate to consult a qualified investment professional with experience in cryptocurrencies.

About the Author James Holland

James is a certified financial planner who helps retirees and pre-retirees make the most of their money. He has more than 10 years of experience in the field, and he knows how to help people plan for retirement on a budget. James also offers advice on estate planning, long-term care, and other aspects of retirement planning.

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