For centuries, the idea of saving for retirement has been important. With the creation and expansion of cryptocurrency, people seek a new way of saving for retirement. Retirement savings accounts, known as Bitcoin IRAs, allow investors to buy and sell Bitcoin in an IRA account, which has some distinct benefits. Let’s take a look at the top sites to open up a Bitcoin IRA.
Quick Look: Best Bitcoin IRA Companies
- Best Overall Bitcoin IRA: iTrustCapital
- Best Bitcoin IRA for Low Fees: Equity Trust
- Best Bitcoin IRA for Beginners: Coin IRA
- Best Bitcoin IRA for Account Security: Bitcoin IRA
- Best Bitcoin IRA for Investment Selection: Alto IRA
5 Best Bitcoin IRAs
1. Best Overall Bitcoin IRA: iTrustCapital
- Best For:Best Overall Crypto IRAVIEW PROS & CONS:securely through iTrustCapital's website
iTrustCapital is the largest Bitcoin IRA, with more than $8 billion in transactions and 200,000+ accounts. It offers crypto trading and other alternative assets, such as precious metals. In addition to IRAs, it also allows you to roll over your 401(k), thrift savings plan (TSP), 403(b), 457 plan and others.
Pros
- Largest in the space
- Lots of account choices
- No monthly fees
Cons
- Limited assets outside of crypto
2. Best for Low Fees: Equity Trust
- Best For:Individual investors seeking tax-advantaged accountsVIEW PROS & CONS:securely through Equity Trust's website
Equity Trust is a retirement account with a focus on alternative investments, including Bitcoin. It offers products ranging from stock and private equity, giving users lots of agency when selecting a portfolio. In terms of fees, it uses a set schedule based on your portfolio balance. You pay an annual fee based on the size of your portfolio, and individual trades do not pay fees.
Pros
- Set fee structure
- Lots of investment options
- Several institutional and business options
Cons
- No cold storage
- Not all retirement accounts are supported
3. Best for Beginners: Coin IRA
Coin IRA is a great way for beginners to invest in Bitcoin through an IRA. With a great interface, as well as an easy setup process, you can get started trading quickly. It offers cold storage and insurance on digital assets, so you can rest assured knowing your assets are protected. However, it offers only a handful of crypto and precious metal options.
Pros
- Easy to set up and use
- Encrypted cold storage
- Digital assets are insured
Cons
- Limited investment options
4. Best for Account Security: Bitcoin IRA
- Best For:Full Service SolutionVIEW PROS & CONS:securely through BitcoinIRA's website
If you are looking for security and ease of use, Bitcoin IRA is for you. It has a variety of enhanced security features, such as cold storage, a partnership with BitGo to process transactions and SSL-secured trades. On top of this, it offers $700 million in custody insurance for its users.
Pros
- Leading security and insurance programs
- Solid interface
- Lots of crypto options
Cons
- No other alternative assets
- Somewhat high fees
5. Best for Investment Selection: Alto IRA
Alto IRA is focused on providing alternative investments for retirement accounts. It has a huge selection of offerings, ranging from 200+ cryptocurrencies to art. These diverse product offerings allow investors to create personalized and diverse portfolios to suit their needs. It offers a capital-raising service for entrepreneurs.
Pros
- 200+ cryptocurrencies
- Variety of alternative investments
Cons
- Some offerings reserved for accredited investors
What is a Bitcoin IRA?
An individual retirement account (IRA) is designed for investors to buy and hold assets for long periods. It typically offers tax incentives, which can allow investors to defer or avoid paying tax at all. For a Roth IRA, users do not have to pay tax on withdrawals if they take out the money after the age of 59 ½ if the Roth complies with requirements. For traditional IRAs, contributions are counted as tax deductions and are later taxed when you withdraw. For both accounts, there is a penalty for an early withdrawal.
Bitcoin IRAs take the idea of an IRA and allow investors to buy Bitcoin. This means that you can receive tax benefits for buying Bitcoin.
How Does a Bitcoin IRA Work?
The inner workings of Bitcoin IRAs largely vary by the broker. For some sites, the broker will serve as an intermediary for the transaction and may not hold the underlying asset. For others, the broker will conduct a transaction directly on the blockchain on your behalf. Either way, the effect is still the same: you pay the broker and receive Bitcoin in exchange.
Apart from executing some transactions on the blockchain, some IRAs also use cold storage. This keeps the private keys needed to access the crypto offline. So, in the event of a hack, nothing can be stolen unless the hackers can access the offline keys, which is extremely unlikely.
Bitcoin IRAs act very similarly to regular IRAs. However, a few differences exist in how transactions are processed and where funds are held.
Advantages of Bitcoin IRAs
- Tax benefits
- Roll over from other accounts
- Some sites allow access to other alternatives
- 24/7 trading
Disadvantages of Bitcoin IRAs
- Regulation is still developing
- High fees
- Penalties on premature withdrawals
Why Invest in a Bitcoin-Only IRA vs. Crypto IRA?
Bitcoin-only IRAs are becoming rare, as it is easier for firms to provide a handful of different crypto offerings. However, a few sites offer IRAs with only Bitcoin. These accounts may be right for you if you are interested in only investing in Bitcoin. Since the Bitcoin chain is separate from many other cryptocurrencies, Bitcoin-only IRAs likely have a strong infrastructure designed to handle Bitcoin transactions. However, other crypto IRAs can also have solid transaction abilities, which may make that a less important distinction.
Additionally, if you only plan on investing in Bitcoin in your IRA, a Bitcoin-only IRA may be a better choice, as they may be able to better support your investment needs and have a more streamlined process.
Which Bitcoin IRA is Right for You?
Because there are options, you’ll want to consider a few key things before choosing which Bitcoin IRA is the right one for you.
Fees are important to consider. Some common fee structures are monthly/annual fees and per-trade fees. It is important to think about how often you will be trading and how big your portfolio will be when considering this factor.
Security is also important to think about. While it is unlikely, there is a chance that the underlying company could go bankrupt or be exposed to hackers. Because of this, it is important to make sure that your broker has an emphasis on security.
Lastly, investors should consider the investment options available. Your investment objectives could change, so it could be useful to have access to other investments on the same account.
Bitcoin IRAs: Lots of Options
After taking a look at the top five Bitcoin IRAs, you should have a solid idea of the top sites, as well as some important factors to consider when choosing an IRA of your own. Though there are many options available, they are different, allowing you to find a site that suits your individual needs.
Frequently Asked Questions
Is a Bitcoin IRA safe?
While it can vary from site to site, most Bitcoin IRAs are safe.
Is a crypto IRA tax-free?
Crypto IRAs, like other IRAs, are not entirely tax-free. However, they do have some tax benefits.
Can you buy Bitcoin in a Solo 401(k)?
Some Bitcoin IRAs also offer 401(k) rollovers.
Does Bitcoin IRA Pay Interest?
It depends on the platform, but most Bitcoin IRAs do not offer interest on Bitcoin holdings.
About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.