This guide shows you all the best Bitcoin & cryptocurrency IRA companies on the market in 2022.
Get tax advantaged Bitcoin with this ultimate guide to best Bitcoin IRA companies and crypto IRAs.
Bitcoin IRA is one of the more well-known and sleek Bitcoin IRA companies out there today.
Bitcoin IRA has processed more than $500 million in client investments and has more than 3,500 5-star reviews on Google and other rating platforms.
iTrust Capital is an IRA custodian based out of Irvine California.
iTrust boasts the only Bitcoin IRA that allows crypto trading 24/7 within their IRA. Asset custody provided by Curv.
Founded in 2018, iTrust Capital IRA has become one of the top Bitcoin IRA options for individuals wanting to diversify their IRA holdings beyond stocks and bonds offered in traditional IRA brokerage accounts. In November 2021, iTrust Capital announced that they had achieved $3.5 billion in trade volume, an impressive increase from the $2 billion reported in July 2021.
"Growing from $2 billion to $3.5 billion in transaction volume in only four months is proof that there are a large number of investors who understand the opportunity we offer to diversify their retirement portfolios with digital assets. We're proud to say clients consistently relay positive feedback and appreciate our commitment to transparency, access, and delivering excellent client service."
iTrust Capital IRA has more than 26,000 funded accounts with trading volumes exceeding $2B. It’s customers have consistently given it a 4.6 rating on TrustPilot. Users have been impressed with the ease of setting up their account and getting the funds transferred in a timely manner.
The most common complaint from fund holders is the lack of tools available for managing the fund, such as no limit, stop loss and automated DCA buy/sells. These are common in most IRA accounts that deal in stock and bond holdings and iTrust has stated that the user interface will be enhanced with these types of features.
This brings up another shortcoming mentioned by users. Currently, there is no mobile app available for managing your account. This means that checking balances and manging your IRA on your mobile device can be cumbersome.
Finally, if you are a New York and Hawaii resident, you can not open an iTrust Capital IRA account. Their website states, “This decision is based upon conflicting NY & HI state regulations regarding digital assets.”
Both iTrust and Bitcoin IRAs offer the same general benefits to individuals wanting to use their IRA for investment into cryptocurrencies. That said, there are some differences that may affect which IRA is best for you.
Both support the major crypto tokens of Bitcoin, Ethereum, Litecoin, and Ripple. Currently, iTrust supports a larger about 25 different cryptocurrencies while BitcoinIRA only supports 7. This list changes frequently though, and each company’s website is the best place to see the coins currently supported.
|Set Up Fees||Annual Fes||Buy Fees||Sell Fees|
|Bitcoin IRA||1.5% to 12.5% (based on deposit size)||$240||5%||1%|
|iTust Capital IRA||None||None||1%||1%|
iTrust Capital IRA Provider and Bitcoin IRA have different fee strategies, which will make a difference to you depending on the value of your investment and how often you want to make a trade into and out of different crypto positions.
iTrust has a simple fee schedule. They recently did away with their $29.95 monthly service fee and only have fees for trading within the account of 1% of the transaction. But be aware, if you sell one type of crypto and buy another that is 2 transactions. So the entire sell/buy transaction fee is really 2%.
Bitcoin IRA does not list fees on their website instead asking that you contact them to determine the fees. Sources have reported on the ways fees are structured on the platform starting with an initial setup fee, also called a platform fee when initially buying into the fund. This fee is said to be 1.5% to 12.50%, based on the initial deposit size into the fund. Bitcoin IRA doesn’t charge any commissions on trades, but there is 1% per transaction fee for sell orders and 5% per transaction fee for buy orders. There is also an annual custodial fee of $240 per year.
BitcoinIRA’s high fees can be offset by the interest paid on accounts up to 6%, but it is dependent on the cryptocurrencies held in the fund. Currently, stablecoins pay 6% APY, while Bitcoin earns 2% APY and Ethereum earns 2.7% APY. These do pay out monthly but there is minimum balance requirement of $10,000 for each type asset. The website also states that the interest rates can change without notice.
|Mobile App||Email Support||Phone Support||Trading Hours|
|iTust Capital IRA||No||Yes||No||24/7|
Both iTrust Capital and Bitcoin IRA have easy to use interfaces on the internet, but Bitcoin IRA also has an App for your mobile devices, making access to your account much easier regardless of where your may be.
And while both IRAs offer 24/7 trading and customer service availability, Bitcoin IRA has 24/7 phone support while iTrust offers support via email only.
Bitcoin IRA reports having over 100,000 users while iTrust currently has only 20,000.
|Amount of Insurance|
|Bitcoin IRA||$700 Million|
|iTust Capital IRA||$380 Million|
Bitcoin IRA is using BitGo Trust to handle the custody of its digital assets. Bitgo is well known-known and trusted, with more than $700 million in insurance on the assets it stores. Bitcoin IRA touts the fact that your funds are insured up to $100 million based on their Lloyd’s of London insurance program through BitGo. Bitcoin IRA assures that your investments are stored offline in a segregated cold storage account.
iTrust Capital states that it secures its accounts with a $380 million insurance policy from Lloyds of London, Aon, and Munich Re.
Bitcoin IRAs & cryptocurrency IRAs have many advantages to consider.
First, many investors consider Bitcoin & digital currency to be a non-correlated asset, good for diversification. This means that when the regular stock market goes down, cryptocurrency is not expected to behave the same way. If this is true, then adding Bitcoin & crypto to your alternative investment portfolio should decrease risk.
Second, if you believe that Bitcoin will increase in value over time, then IRAs are a great way to grow that wealth in a tax advantaged way. You can also rollover your existing IRA into a cryptocurrency IRA.
Finally, IRAs also make gains from crypto far more easy to account for on your tax returns since you either only pay taxes on the money you put in (Roth IRA) or you only pay taxes once when you take the money out (Traditional IRA).
Bitcoin IRAs aren’t all sunshine and rainbows. They come with some disadvantages as well.
First, retirement investments tend to be in safer, more ‘boring’ alternative assets like fortune 500 stocks because they have much less volatility. Staking your retirement plan on a wildly volatile asset is risky, especially as you get older and near the age of retirement. Even if the alternative investment would eventually pay off, if you start taking payments during a major downturn in the Bitcoin price, it could be bad.
Second, IRAs come with additional transaction fees over simply buying and selling Bitcoins on an exchange. As you may know, trade fees are a major killer to profit. The account holder needs to make money too, and all the resources for securing the coins under custody costs a lot of money.
Finally, when you invest in Bitcoin in a cryptocurrency IRA, you do not get to hold the Bitcoin. There is therefore no way to really know if the custodian is holding the Bitcoin or if they are actually holding it safely. The custodian could get hacked or they could just run away with your money (the latter is unlikely, but possible).
To understand what a Bitcoin IRA is, it’s important to understand what a vanilla IRA is.
‘IRA’ stands for ‘Individual Retirement Account’ (or ‘Arrangement’). According to Fidelity, an IRA is
...an account set up at a financial institution that allows an individual to save for retirement with tax-free growth or on a tax-deferred basis.
Once money is in the IRA, the individual can use the money to make investments in stocks, bonds, or other types of asset class (with certain limitations outlined below). The main benefit is there is no need to pay capital gains.
There are a few different kinds of IRAs worth comparing, but the main ones are known as ‘Traditional’ and ‘Roth’ IRAs.
In a traditional IRA, you can contribute money toward your retirement and you can deduct that money from your annual tax return. This money grows tax deferred, meaning you don’t not pay any taxes on it until you retire and start pulling from the IRA.
This is good if you anticipate that your income will go down once you retire, allowing you to pay at a lower tax bracket. You are also growing your money on a larger stack of dollars because you didn’t pay any taxes on that money while it was growing.
Roth IRAs are very similar to traditional IRAs except you pay all your taxes upfront every time you contribute instead of when you retire. Any growth that occurs on the money after the taxes paid at contribution is yours. There are requirements to this tax free growth, so you should be aware of those before deciding.
You may be wondering what any of this has to do with Bitcoin.
Well, a Bitcoin IRA is just a standard IRA where some of the investments in it are in Bitcoin or other cryptocurrency.
However it’s worth noting: while Roth and Traditional IRAs are common, they aren’t all the same.
The IRS has certain rules that all IRAs must comply with, but the ‘custodians’ that are authorized to offer these IRAs (usually big banks) often have their own restrictions. In most cases, these restrictions include the buying and selling of Bitcoin and cryptocurrencies.
So if you want to use your IRA retirement account to buy and hold Bitcoin, you need to find a qualifying IRA custodian that does not have these restrictions.
These are the best Bitcoin IRAs on the market in 2022.
What makes these custodians great?
So you really can’t go wrong with any of them.
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BitIRA offers an online platform to invest in cryptocurrency for your individual retirement account. BitIRA uses some of the top experts from the industry in asset purchasing, custodial management, security protocols, digital currency storage, and real-time trading. Cryptocurrencies available on the platform are: Bitcoin, Bitcoin Cash, Litecoin, Zcash, Ethereum, Ethereum Classic, and Stellar Lumens.
Digital IRAs are types of Self-Directed IRAs (SIDRA).
For over 40 years, the most conventional assets (real-estate, stocks, bonds, and mutual funds) have proven track records, but still there are investors who prefer to diversify their retirement portfolio and turn to SIDRAs because it offers an individual control over their own asset allocation.
CoinIRA is specialized in allowing investors and retirees to invest in crypto in their IRA by doing a rollover to a self-directed IRA.
As far as fees are concerned, CoinIRA's annual costs range from $175 to $225 a year, which includes an $80 yearly maintenance fee, $100 annual storage fee, and a $50 setup fee. CoinIRA was featured in Forbes Magazine.
Founded in 2010, Regal Assets is an alternate assets investment firm. In 2017, it added cryptocurrency to its portfolio offerings. Regal Assets also allows investors to precious metals as well. In terms of pricing, the company is unique because of its flat fees.
In 2018, BitGo announced the launch of the BitGo Trust Company, the only regulated, qualified custodian purpose-built for digital assets.
BitGo Trust's IRAs feature 100% cold storage technology in bank-grade Class III vaults, support for 75+ coins and tokens, institutional-grade policy controls, multi-user accounts, fast onboarding, and 24/7 support.