Best Crypto IRAs

Benzinga's top picks for the best crypto IRAs include iTrustCapital and BitcoinIRA. Read on to find out which one is best for you!

Traditional individual retirement accounts (IRAs) offer a solid pathway to future financial security. And as the global markets become more volatile, investors are seeking to diversify their IRAs. Alternative assets, such as Bitcoin and other cryptocurrencies, are some of the popular choices. Although cryptocurrencies are volatile investments, the asset class has outperformed almost any other investment over the last decade.

Cryptocurrency IRAs provide a unique advantage by allowing investors to defer capital gains tax, so long as their investments remain within the IRA account. This deferral is more beneficial than it may initially appear, as it enables investors to reinvest their untaxed gains rather than losing a portion of their profits to taxes at the time of sale. By reinvesting these gains, investors can take advantage of the compounding effect, leading to a significantly larger overall portfolio over time. Furthermore, this strategy can potentially result in a lower tax liability upon withdrawal, as investors may be able to strategize their distributions in a more tax-efficient manner. Thus, a cryptocurrency IRA not only offers tax benefits but also encourages long-term growth and financial planning.

Ready to invest in cryptocurrencies for retirement? Explore Benzinga's guide to the best crypto IRAs and learn about the top providers, benefits and crucial factors to consider.

Quick Look at the Best Crypto IRAs:

• Best for Beginner Cryptocurrency Investors: iTrustCapital
• Best for Those Seeking a Licensed Investment Professional: Digital Asset Investment Management
• Best Full-Service Solution: BitcoinIRA
• Best Alternate Asset Experience: Broad Financial
• Best for Crypto IRA Investors: My Digital Money
• Best for Tax-Deferred Gains: BitIRA

Best Crypto IRAs

There are several options on the market which you can compare –– these platforms typically have slightly higher fees than regular crypto exchanges, but the tax benefits often make the tradeoff well worth it. Let's look at the best crypto IRAs available today.

1. Best for Beginner Cryptocurrency Investors: iTrustCapital

iTrustCapital is the leading digital asset IRA trading platform that allows you to directly buy and trade cryptocurrencies and physical gold in real-time through their retirement accounts.

They have completely transparent pricing with crypto being a 1% trade fee and gold $50 over spot per ounce. They also provide the following:

• IRA setup at iTrust Custodial Services
• Facilitation of any transfers to your IRA
• IRS (Internal Revenue Service) and tax reports by iTrust Custodial Services
• Unlimited storage with institutional custody partners
• Platform support and maintenance

The platform also offers educational resources and tools to help investors make informed decisions and understand the intricacies of cryptocurrencies and retirement planning.

Why We Picked It: With competitive fees and the ability to trade 24/7, iTrustCapital stands out as a reliable option for individuals looking to incorporate crypto into their retirement strategy.

2. Best for Those Seeking a Licensed Investment Professional: Digital Asset Investment Management

When you’re looking for a licensed professional who can help you manage your portfolio, reach out to DAIM or Digital Asset Investment Management. This investment advisor can help you complete a great many tasks that will vastly improve your digital holdings, including:

• Diversifying your portfolio
• Learning more about crypto
• Planning for the future or retirement
• Understanding the tax liabilities associated with digital investments
• Gaining access to pure crypto
• Investing in assorted digital assets

You can integrate DAIM with your retirement accounts, pairing with investments like a Roth IRA, traditional IRA, SEP, SIMPLE or 401(k) account. Along with this level of functionality, you get the best reporting, 24/7 access to your account, a wealth of information and professional investment advice that doesn’t shy away from digital or crypto assets.

Why We Picked It: With a tailored approach to investment strategies and personalized service, they help clients navigate the intricacies of crypto investing while aiming to maximize returns within the framework of a retirement account.

3. Best Full-Service Solution: BitcoinIRA

BitcoinIRA has an award-winning experience due to an easy-to-use platform, accounts setup in only few minutes, full-service IRA rollovers, educational content, and BitcoinIRA experts who are there to answer any questions. BitcoinIRA offers over 60+ cryptocurrencies, 100% offline cold storage, custody insurance up to $250 million, and 24/7 buying and selling.

BitcoinIRA is a full-service solution that allows you to invest in Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash and Ethereum Classic with your IRA. This is an amazing selection compared to most of Bitcoin IRAs competitors. The firm works to make the complex process of crypto investing simpler and safer.

BitcoinIRA is especially great for large crypto investors because of its low fees and fantastic custody insurance. Your digital assets are stored and insured for up to $250 million with BitGo Trust, which is powered by BitGo Inc.’s technology. BitGo Inc. is the world’s largest processor of on-chain bitcoin transactions, processing 20% of all global Bitcoin transactions and holding over $2 billion in assets in wallet.

Whether you need help with a rollover, traditional or Roth IRA—it only takes a few minutes to open an account with BitcoinIRA.

Why We Picked It: BitcoinIRA offers 24/7 trading, expert support and a range of cryptocurrencies to choose from. This makes it an appealing option for both novice and experienced investors seeking exposure to the fast-growing digital asset market.

4. Best Alternate Asset Experience: Broad Financial

Broad Financial is a flexible platform that allows you to self-direct your IRA on the trajectory that you prefer. This crypto IRA trust has flat fees — there are no asset-based fees or transaction fees. You have an unlimited selection of tokens to invest in, and you can choose any exchange you like to make these trades.

The fee structure features:

• $50 one-time setup fee (can upgrade to set up the Trust for $1,195 or $1,295 to set up the LLC)
• $100 one-time custodian set-up fee and funding the new Trust
• $105 custodial fee per quarter to maintain the Checkbook IRA ($25 per quarter for additional assets)
• $420 annual maintenance fee (payable in $105 per quarter)
• Free lifetime customer support
• Tax-advantaged accounts

A significant advantage that helps Broad Financial stand out from the crowd is that you can hold your private keys. When you can hold your private keys, you gain certain benefits that the competition cannot provide, like:

• Choosing the storage format you prefer
• Using an existing digital wallet
• Customizing your security for your own peace of mind

You can also invest in real estate, private loans, precious metals, small businesses, etc. With this level of flexibility, you can move your retirement funds to the places you prefer, saving you both time and energy while increasing your net worth.

Why We Picked It: Broad Financial provides a self-directed approach. This allows account holders to have full control over their investment decisions and the flexibility to manage their portfolios actively. 

5. Best for Crypto IRA Investors: My Digital Money

My Digital Money is a U.S.-based crypto trading platform that partners with My Equity Trust to provide self-directed crypto IRA products. With no monthly fees or account fees, you can invest with your IRA funds and earn tax-free or tax-advantaged profits that bolster your retirement portfolio. You can open a range of IRA accounts, including Simple IRA, Traditional IRA, Roth IRA and Simplified Employee Pension Plan (SEP) IRA.

Set up a cash account to start trading and then the MDM platform allows you to trade away from the prevailing markets, reducing risk and helping you purchase at the best price possible. You can also use limit orders that buy or sell at specific prices or after certain price changes.

You have complete control of your IRA funds, and you can always trade crypto independent of your IRA on the same platform, if you so choose.

Why We Picked It: With its user-friendly platform, expert customer support, robust security measures and diverse investment options, My Digital Money allows you to easily diversify your portfolio and potentially enhance your returns.

6. Best for Tax-Deferred Gains: BitIRA

Most crypto IRA companies take no responsibility for the security of your crypto. BitIRA turns this trend on its head and offers end-to-end insurance for your account.

You also get true cold storage for your crypto — it's kept on a hard drive in a vault that is physically guarded around the clock. You get this protection along with praiseworthy customer service that will make you feel comfortable even if you have never invested in crypto before.

The selection of cryptocurrencies currently available with BitIRA includes Bitcoin, Bitcoin Cash, Litecoin, Ethereum Classic, Ethereum, Chainlink, Stellar Lumens, Maker, Uniswap and Ripple.

Why We Picked It: BitIRA stands out by employing cold storage vaults to safeguard your cryptocurrencies, ensuring they are protected from potential hacks or theft. Additionally, they provide a wide range of cryptocurrency options, allowing you to diversify your retirement portfolio effectively.

How Crypto IRAs Work

A crypto IRA falls under the umbrella of self-directed IRAs. Crypto’s volatility and looser regulatory structure likely scare investment custodians away from accepting responsibility for consistent returns.

Most financial institutions brand their crypto IRAs with the Bitcoin name because of Bitcoin’s popularity and relative stability even though most offer other cryptos like Ethereum as well. There are IRA investment opportunities available in other major coins including Ether, Litecoin, XRP and Bitcoin Cash. They usually have higher fees associated with them than traditional IRAs, but it may be well worth it to avoid capital gains taxes.

The average crypto IRA will have a holding fee, minimum monthly account fee, establishment fee and fees for purchasing assets and fund transfers. Traditional IRA accounts generally do not have any establishment or monthly maintenance fees.

Within an IRA designation, cryptocurrency accounts are automatically subjected to regulations they would otherwise avoid. IRA contribution limits apply to crypto IRAs as well, for example. Investors are also required to purchase the cryptocurrencies in an IRA from a designated firm. These firms use their monopoly to charge fees for their involvement. This is still an improvement, however, because these firms didn't exist only a few years ago, making it impossible to buy crypto with an IRA.

Additionally, crypto IRAs can only be traded during standard market hours. The crypto market is open for trading 24/7/365, so the value of an IRA can change significantly over a weekend while leaving the investor with no recourse. Crypto within an IRA account is subject to capital gains taxes as well.

Trade Cryptocurrency

If you want to trade crypto while holding your IRA, you need a good trading platform. Some things to consider when choosing where to trade crypto are the platform's security, altcoin offerings and customer support. Some platforms, like Uphold, allow you to earn interest on your digital assets. This is a great way to accumulate more cryptocurrency over time without needing to invest more into your trading account. Here are a few of the best to consider:

Can You Buy Crypto In a Roth IRA?

Unfortunately, if you already have a Roth IRA, it's unlikely you'll be able to buy Bitcoin or cryptocurrencies with it. Most investment retirement accounts for cryptocurrencies are self-directed, and you'll likely need to open a new IRA account specifically for cryptocurrency investing, as most traditional IRAs don't support cryptocurrency. Luckily this is usually not too difficult with the best crypto IRA platforms. Alternatively, you may want to wait until cryptocurrencies are added to traditional Roth IRAs. However, this may be far in the future and Bitcoin may be much more expensive by the time this happens.

Retiring off Cryptocurrency With a Crypto IRA

If you are looking for a way to inject growth potential into a long-term portfolio, using a crypto IRA is a viable option. Crypto may also be a good last-minute hedge against inflation or low-interest rates for older people who are about to retire. However, remember that cryptocurrencies are inherently volatile, so if you're looking to preserve wealth (as opposed to growing wealth), you should consider a traditional retirement account. While it may be good to have some exposure to crypto as a retiree, it certainly shouldn't be your only investment.

It may be a bit premature to put everything into crypto even under the tax haven of the IRA. However, it may also be time to take a serious look at how this market can make your golden years even more fruitful.

Benzinga Partner

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Disclosure: Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

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