August 2023’s Top 6 Bitcoin IRAs

August 2023's Top 6 Bitcoin IRAs

The Rise of Bitcoin IRAs: A Tax-Efficient Strategy for Retirement Investing

Investing for retirement has taken on new dimensions with the advent of cryptocurrency. Bitcoin, in particular, has gained significant attention as a potential asset for retirement portfolios. This has led to the emergence of Bitcoin IRAs, a tax-efficient investment strategy that allows individuals to include cryptocurrencies in their retirement accounts and potentially avoid capital gains taxes.

The Growing Popularity of Crypto and Retirement Investing

In recent years, the topic of crypto and retirement investing has gained traction, fueled by the growing acceptance of Bitcoin and other cryptocurrencies by mainstream financial institutions. For example, brokerages like Fidelity now offer Bitcoin as a 401(k) investment choice. However, several companies also offer crypto trading through self-directed Individual Retirement Accounts (IRAs).

Bitcoin IRAs present an alluring investment option for those who want to build wealth while avoiding capital gains taxes. Without an IRA, investors would be subject to capital gains taxes for regular crypto transactions. However, self-directed IRAs eliminate or defer these additional costs.

The best cryptocurrency exchanges offer a range of crypto availability, account security, low fees, and mobile access. For dogecoin enthusiasts, the best dogecoin crypto apps are worth exploring. On the other hand, the best Bitcoin IRAs provide custodial services, storage options, and, in some cases, 24/7 trading access, making them popular among individuals looking to avoid capital gains taxes.

The Best Bitcoin IRAs

When it comes to selecting the best Bitcoin IRAs, there are several options to consider. Here are the top choices according to Insider’s editors:

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• Bitcoin IRA: Best overall
• BitIRA: Best for account security
• Alto IRA: Best investment selection
• CoinIRA: Best for expert assistance
• iTrustCapital: Best for low fees
• Broad Financial: Best for account flexibility

Each of these Bitcoin IRAs offers different features and benefits, catering to the needs and preferences of investors. Let’s take a closer look at what sets them apart and what to consider when selecting the right Bitcoin IRA for your retirement investment strategy.

Bitcoin IRA: Best Overall

Bitcoin IRA stands out as the best overall Bitcoin IRA provider due to its comprehensive range of features. It supports 24/7 trading of more than 60 cryptocurrencies, including bitcoin, ether, litecoin, and more. With a minimum investment requirement of $3,000, investors can choose to invest in a single coin or a blend of multiple coins.

Bitcoin IRA charges a one-time service fee that covers support services for retirement fund rollovers and setup costs for a self-directed IRA. The platform utilizes BitGo Trust for custody, providing up to $700 million in insurance and complete offline storage.

However, it’s important to note that Bitcoin IRA’s fees and pricing are not straightforward. To get accurate information, it’s recommended to reach out to a company representative.

BitIRA: Best for Account Security

BitIRA is another popular Bitcoin IRA option known for its strong account security. The platform allows investors to add bitcoin and other virtual assets to their retirement accounts. BitIRA’s custodian, Equity Trust Company, handles administrative duties while giving investors complete control over their assets.

BitIRA supports several cryptocurrencies, including bitcoin, bitcoin cash, ether, litecoin, and more. With a minimum investment requirement of $5,000, investors also incur an annual maintenance fee and a crypto storage fee.

To prioritize security, BitIRA relies on offline cold storage, multi-factor authentication, and provides $100 million in custody insurance.

Alto IRA: Best Investment Selection

Alto IRA stands out for its low fees and extensive investment selection. Investors can access numerous alternative investments, including fine art, startups, real estate, cryptocurrencies, and private equity. Alto IRA partners with Coinbase to provide access to over 200 cryptocurrencies and utilizes both hot and cold storage.

Additionally, Alto IRA offers commercial crime policy insurance coverage of $320 million and $3 million in cyber crime coverage. It’s important to note that some of Alto IRA’s investments are reserved for accredited investors, and it doesn’t offer SIMPLE IRAs.

CoinIRA: Best for Expert Assistance

CoinIRA differentiates itself by offering comprehensive resources and expert assistance for investors interested in including cryptocurrencies in their IRAs. The platform provides access to consultants who can assist with crypto-related questions and offers a free cryptocurrency IRA guide.

In terms of investment offerings, CoinIRA supports bitcoin, ether, litecoin, and 17 other cryptocurrencies. The company provides insured offline crypto storage with no fees. However, trading transactions do incur a fee of 1.25% for buy transactions and 1% for sell transactions.

CoinIRA primarily relies on Equity Trust Company’s offline storage methods and doesn’t offer multiple wallet options as it did previously.

iTrustCapital: Best for Low Fees

iTrustCapital offers more than 25 cryptocurrencies for investors interested in crypto IRA investing. With assets such as bitcoin, ether, cardano, and more, iTrustCapital also offers precious metals like gold and silver.

The platform supports various funding methods, including IRA transfers and employer plan rollovers. iTrustCapital partners with Coinbase Custody to provide a $320 million insurance policy.

However, it’s important to note that iTrustCapital doesn’t allow funding with crypto assets and is available in all states except New York and Hawaii.

Broad Financial: Best for Account Flexibility

Broad Financial offers a unique feature with its Bitcoin IRA: the Checkbook IRA LLC. This account type gives investors complete control over their crypto, allowing them to choose any cryptocurrency, crypto exchange, or crypto wallet they prefer.

The IRA has no account minimums and can be structured as a traditional IRA or Roth IRA. Broad Financial charges a one-time account setup fee and a quarterly custodial fee.

While there are no account minimum requirements, investors should be aware of the $1,295 upfront cost when setting up the IRA.

Additional Considerations

In addition to the top Bitcoin IRAs mentioned above, there are other options worth considering:

• Rocket Dollar account: This company offers self-directed IRAs and solo 401(k)s with a wide range of investment options. However, setup fees may be high for some.
• Regal Assets: With an expansive selection of assets, including cryptocurrencies and precious metals, Regal Assets requires a minimum investment of $5,000.
• Equity Trust account: Equity Trust offers a range of assets, including real estate investments, precious metals, cryptocurrencies, and more. However, the platform lacks fee transparency.

Why Trust Our Recommendations

Insider’s editors have carefully reviewed numerous Bitcoin IRAs using a comprehensive rating methodology. The evaluation process considered factors such as cryptocurrency selection, fees, security, features, and customer service availability.

Regarding fees, attention was paid to account minimums, setup fees, and advisory fees. Each Bitcoin IRA provider’s strengths and weaknesses were analyzed to provide a well-rounded assessment for investors.

By considering the specific features and benefits offered by these Bitcoin IRAs, investors can make informed decisions about including cryptocurrencies in their retirement portfolios. It’s essential to conduct thorough research and consult with financial professionals before making any investment decisions.

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