Crypto IRA Platforms are the latest trend for individuals planning their retirements. Stay tuned to understand the risks, benefits, and some leading crypto/Bitcoin IRAs.
Retirement requires planning, and Individual Retirement Accounts (IRAs) are a popular piece of this puzzle.
However, as everywhere else, crypto has sparked people’s interest with its value escalating over the years (or falling to ashes with just a tweet).
We at Geekflare aren’t financial advisors. This article is focused on helping you find the best crypto IRAs but does not endorse any such practice.
Nevertheless, the overall enthusiasm about cryptocurrencies remains positive, driving people towards crypto IRAs.
But first, it’s crucial to understand…
What are Crypto IRAs?
Crypto IRAs are self-directed IRAs (SDIRA) that enable you to buy and sell cryptocurrencies through a U.S.-based exchange.
SDIRA follows the same procedures and tax regulations as any traditional IRA. However, it’s important to note that the IRS treats cryptocurrencies as property, akin to stocks and bonds.
Whether these arrangements enjoy significant gains or face potential losses is left to anyone’s speculation.
Benefits and Disadvantages of Crypto IRAs
The primary advantage of crypto IRAs lies in the ability to invest in cryptocurrencies for retirement, a feature not available with regular IRAs. This also aids in portfolio diversification.
However, alongside the volatility, the limited acceptance of cryptocurrencies remains a significant drawback. Despite their price fluctuations, the widespread use of cryptocurrencies in everyday life is still minimal.
Transaction fees can also impact the overall investment returns, and the fact that crypto IRAs are not yet mainstream may contribute to a lack of competition.
Nevertheless, the growing interest in crypto IRAs has led you to explore these platforms if you are determined to venture into the cryptocurrency realm.
AltoIRA
Alto’s CryptoIRA allows the purchase of over 150 cryptocurrencies through Coinbase. The standout feature of this crypto IRA is its straightforward fee structure, with only one item to track – a 1% transaction fee.
Remarkably, this fee also covers the Coinbase transaction fees. There are no account setup or annual fees, except for the account closure ($50) and wire transfer ($25) fees. Moreover, there are virtually no investment minimums, starting at $10. However, non-crypto investments require a separate IRA.
Alto supports the rollover or transfer of existing traditional Roth, SEP, SIMPLE IRA, 401(k), and 403(b) plans into your crypto IRA.
Lastly, Alto offers a free service to help set up or fund your Crypto IRA.
iTrustCapital
iTrustCapital offers additional flexibility by allowing the purchase of gold and silver within its crypto IRA. However, there is a $1,000 account minimum, and the selection includes just over 25 cryptocurrencies. Nonetheless, major crypto coins such as BTC, LTC, ETH, SOL, XLM, BCH, etc., are included.
For crypto trading, you’ll only pay a 1% transaction fee. However, there are separate fees for trading in physical gold and silver. Additionally, there’s an additional $75 fee for converting traditional, Roth, or SEP IRA.
iTrustCapital holds your assets with institutional-grade custodians like Coinbase and Fireblocks, although you don’t get to choose between the two.
Overall, it can be a suitable option if you want to invest in precious metals and don’t mind the minimum investment requirement.
BitcoinIRA
BitcoinIRA offers access to 60+ crypto assets, but what sets it apart is the 100% offline, cold storage.
It differs a bit from the platforms discussed so far.
Firstly, there is no transaction fee, but custodian, security, and a one-time service fee apply, depending on the investment amount and must be inquired about separately from the support executives.
However, earning interest (up to 6%) on crypto holdings makes this platform worth considering.
Similar to others, BitcoinIRA allows for the rollover of existing IRAs or other retirement plans.
Choice
True to its name, Choice is one of the most flexible CryptoIRA platforms you’ll ever need.
They offer three types of accounts based on individual needs:
- No Annual Fee Account
- Cold Storage (1% annual fee)
- Self-Custodial ($500 setup, $10/month)
Notably, the 1% trading cost is additional and applies to all. Besides, there are no minimums, and you can switch between the options anytime. Similarly, you can consolidate all the pensions into one with Choice.
But the best part is the flexibility to invest in crypto, gold, ETFs, stocks, etc., with a single pension.
Broad Financial
Broad Financial Crypto IRA offers maximum independence, allowing you to invest from the crypto exchange of your choice. This setup is ideal for holding private keys, and there is no minimum investment requirement. Additionally, you can invest in a diverse range of asset classes.
In conclusion, it provides you with complete checkbook control and operates on a flat fee, which you need to inquire about from their support.
BlockMint
From the Lear Capital family, BlockMint offers a premium Crypto IRA with a minimum investment of $10,000. BlockMint supports transfers and rollovers from existing IRAs and retirement plans similar to 401k.
They impose a substantial 15% transaction fee but provide volume investment discounts. Additionally, the custodian (Equity Trust) levies a 2.5% fee on purchase transactions and a 1.0% fee on selling transactions.
Adding to the list of fees, there is an annual $195 charge for account maintenance and 0.05% storage fees on Crypto IRA holdings.
In conclusion, this appears to be the most expensive option among the choices available.
TradeStation
TradeStation serves as the all-encompassing IRA for investing in alternative assets, including crypto and stocks, with no crypto custody fees. Additionally, there is no minimum holding requirement.
However, TradeStation imposes service fees and account termination charges based on the investment amount.
BitTrustIRA
BitTrustIRA stands out as an ideal platform for those seeking heightened security beyond standard military-grade assurances, offering 100% cold crypto storage within decommissioned nuclear bunkers. This cryptoIRA doesn’t impose rigid investment restrictions, but it does involve a one-time setup fee of $50, along with purchase (5%) and selling charges (1%). Additionally, users must cover extra services fees, such as wire transfers and account termination.
Conclusion
When it comes to risky investments, crypto takes the lead. Therefore, it’s crucial to conduct thorough research before selecting any crypto IRA platform. Even platforms claiming to have no hidden fees may discreetly charge their customers. Therefore, carefully review the terms, read customer reviews, and seek real-life feedback from peers to ensure the best possible experience.
