Our top picks for the best crypto IRA
We reviewed a number of established crypto IRA providers with a focus on the following: custodial security, fees, and regulatory compliance. We worked to identify platforms that facilitate secure, tax-advantaged crypto investing.
iTrustCapital, Alto IRA, and BitIRA are among our top choices. Notably, they focus on asset safety, diverse coin support, and clear fee structures. This makes them attractive to those wanting to hold crypto long-term in a retirement account.
iTrustCapital
Best crypto IRA for altcoins
Unchained Capital
Best Bitcoin IRA for security
The best Bitcoin IRA
Alto is a popular crypto IRA option for those with limited funds. They offer over 200 cryptocurrencies and have low investment minimums. While they charge a 1% trade fee and offer a choice between a $10/month or an annual $100 account fee, their competitive rates and fees make them a compelling choice.
– Pros & Cons
Pros
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Extensive cryptocurrency options
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Low minimum investment requirements
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Competitive fees
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Cash insured by FDIC
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Transparent fee structure
Cons
– Why our experts picked it
Alto IRA offers a wide array of cryptocurrency choices, low investment minimums, and a transparent fee structure, making it suitable for investors with limited resources.
Bitcoin IRA caters to savers looking for long-term growth. They offer a range of cryptocurrency options and various IRA selections. However, they have relatively high fees, including 5.99% for setup 2% for trading.
– Pros & Cons
Pros
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Multiple cryptocurrency options
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Various IRA choices
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Potential for long-term growth
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Tax-advantaged retirement accounts
Cons
– Why our experts picked it
Bitcoin IRA is suitable for long-term investors who believe in the potential of cryptocurrencies in their retirement portfolios.
BitIRA stands out as a leading cryptocurrency IRA provider, offering end-to-end insurance for the digital assets stored on its platform. If you prioritize security for your cryptocurrency investments, BitIRA has you covered. The company also provides a cold storage option that utilizes cutting-edge multi-signature technology. This approach allows you to retain control over your private keys and shields your assets from potential thefts and hacks.
– Why our experts picked it
BitIRA’s commitment to security, backed by end-to-end insurance, makes it an excellent choice for investors who want a secure cryptocurrency IRA option. Their cold storage facilities, including nuclear bunkers, offer additional peace of mind.
Coin IRA
Best crypto IRA for crypto and precious metals
Coin IRA offers a unique blend of cryptocurrency and precious metals options. With low trading fees and no monthly or storage fees, it provides flexibility and diversification for investors. Coin IRA charges 1.25% on buy trades and offers fractional gold and silver accounts.
– Pros & Cons
Pros
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Precious metals and cryptocurrency options
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Competitive trading fees
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No monthly or storage fees
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Insured crypto storage
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Flexible investment choices
Cons
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Account minimum of $5,000
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Limited cryptocurrency options
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Some tokens may be considered unregistered securities
– Why our experts picked it
Coin IRA allows investors to blend precious metals and cryptocurrencies in their retirement portfolios, offering a unique investment approach.
iTrustCapital
Best crypto IRA for altcoins
iTrustCapital is a solid choice for those who want to diversify their portfolio beyond Bitcoin. They offer dozens of different cryptocurrencies and various IRA options, including Traditional, Roth, SEP, and SIMPLE IRAs. While there is a $1,000 account minimum, their low transaction and trading fees make them a competitive option.
– Pros & Cons
Pros
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Diverse altcoin investment options
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Low transaction and trading fees
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No setup or monthly fees
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Utilizes trusted custodians
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Multiple IRA types
Cons
– Why our experts picked it
iTrustCapital provides a wide range of cryptocurrency investment options and offers attractive fee structures, making it a great choice for those looking to diversify their IRA portfolio.
Rocket Dollar
Best crypto IRA for investment diversity
Rocket Dollar takes a unique approach, making it an appealing option for investors who desire complete control over their retirement account’s investment choices. It’s not just about cryptocurrencies – Rocket Dollar allows you to open a self-directed IRA or self-directed solo 401K, enabling you to invest in various assets, including real estate and startups.
– Why our experts picked it
Rocket Dollar gives investors the freedom to diversify their retirement portfolio beyond crypto. It provides competitive pricing and investment controls, which can benefit experienced investors.
If you’re a Bitcoin purist looking for the best Bitcoin IRA, a Swan Bitcoin IRA may be your ideal choice. This platform offers an effortless and secure way to invest in Bitcoin for your retirement. Swan ensures regulatory compliance, independent oversight, and asset protection in a legal trust account. They also support Solo 401k, Checkbook IRA LLC, and IRA financial trust options.
– Pros & Cons
Pros
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No minimum balance requirements
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Bitcoin-only investment options
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Competitive fees
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Strong custodial security
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Quick account setup
Cons
– Why our experts picked it
Swan Bitcoin IRA makes Bitcoin investing accessible and secure for both beginners and experienced investors. Their focus on Bitcoin-only investments and strong custodial security set them apart.
Unchained Capital
Best Bitcoin IRA for security
If security is your top concern, Unchained Capital stands out. They offer a Bitcoin-only IRA with robust security measures, including multi-signature cold storage vaults and encryption. While they charge a $995 setup fee and a $150 annual account management fee, their security measures provide peace of mind.
– Pros & Cons
Pros
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High-level security features
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Bitcoin-only investments
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Innovative security protocols
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Multi-signature cold storage
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Strong custodial measures
Cons
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Higher setup and account management fees
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$6,000 minimum investment
– Why our experts picked it
Unchained Capital prioritizes the security of your IRA investments, making it an excellent choice for those who value peace of mind in the crypto space.
How to choose the best crypto IRA
When selecting the best crypto IRA, consider the following factors:
1. Security: Prioritize custodians that implement strict security measures to protect your digital assets.
2. Transparent and Reasonable Fees: Carefully review the fee structure to avoid hidden or excessive fees that may eat into your returns.
3. Custodian Reputation: Research the custodian’s reputation to ensure they have a credible track record.
4. Tax Implications: Familiarize yourself with the tax implications specific to your jurisdiction and investment choices. When in doubt, work with a crypto tax professional.
5. Regulatory Compliance: Stay informed about changing regulations and legal developments affecting your crypto IRA investment.
How do crypto IRA taxes work?
Cryptocurrency IRAs offer potential tax benefits, including tax-deferred growth in traditional IRAs and tax-free withdrawals in Roth IRAs during retirement. However, tax treatment may vary depending on your jurisdiction, so it’s essential to consult a crypto tax professional to navigate the tax landscape effectively.
Crypto IRA and potential crypto tax savings
Crypto IRAs offer substantial tax benefits for US investors and can help reduce short-term tax liabilities and serve as a long-term investment strategy.
A crypto IRA is a self-directed Individual Retirement Account (IRA). These IRAs enable you to invest in cryptocurrencies as well as traditional assets like stocks or real estate. Understanding crypto taxes and the types of IRA accounts available is essential to maximize these benefits.
The IRS classifies cryptocurrencies as property, like stocks. This means they are generally subject to crypto capital gains tax when you sell, spend, or trade them. In addition, some crypto activities like mining or staking may incur income tax.
However, the tax treatment for your crypto IRA depends on the type of crypto IRA you choose.
Traditional Crypto IRA Tax
Contributions to a traditional crypto IRA may be tax-deductible if you are not covered by another retirement plan and meet certain income limitations. Taxes are deferred until you withdraw your funds, usually at retirement age when you may be in a lower tax bracket.
Roth Crypto IRA Tax
In a Roth Crypto IRA, you won’t pay tax when you withdraw your funds at retirement. While it offers tax-free withdrawals, the crypto you invest in a Roth IRA is not tax-deductible. Therefore, you won’t reduce your annual tax bill through Roth IRA contributions.
There’s no definitive answer to whether a traditional or Roth crypto IRA is better. Your choice should depend on whether you prefer immediate tax benefits or tax-free withdrawals in the future.
Both types of IRA accounts have an annual contribution limit of $6,500 ($7,500 if you’re 50 or older). Traditional IRAs are suitable for those expecting a lower retirement tax bracket, while Roth IRAs are advantageous if you anticipate a higher tax bracket in retirement.
While cryptocurrency IRAs offer potential tax advantages and diversification, they also come with risks and fees. You may want to consult with a crypto tax professional before diving into this investment strategy.
Final verdict about the best crypto IRAs
Selecting the best crypto IRA can be a critical step towards securing your financial future with crypto. Our crypto tax professionals’ picks cater to a wide array of investor needs. The choice of the best crypto IRA ultimately depends on your individual investment goals, risk tolerance, and preferences.
Before making a decision, consider factors like security, fees, tax implications, and regulatory compliance to ensure a well-informed choice and a secure financial future.
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Methodology
How our crypto tax professionals selected the best crypto IRAs