The financial world is changing more rapidly than ever. That means your investments need to adapt and there’s no better time then now! Cryptocurrencies like Bitcoin, Ethereum, and Ripple are revolutionizing the world as we know it. Now you can take advantage of this new asset class by allocating a portion into your IRA account with one of these custodians below that will get you setup quickly.
Cryptocurrencies have always been a hot topic in the financial world for years.
Bitcoin has risen and fallen from its glory days of 2017, but blockchain is still going strong. With general speculation on price aside, investors are flocking to cryptocurrency options as long-term investments or adding them to their retirement plans.
Cryptocurrency investment continues to be popular among many people who want more than just stocks and bonds for investing purposes. Cryptos such as Bitcoin can offer an opportunity that exceeds traditional assets with highly volatile prices due to factors like faith in currency stability which will likely not happen any time soon given how our economy works currently (hence why crypto remains so attractive).
The Top Bitcoin IRA Companies in 2021
- Bitcoin IRA – Best Overall
- BitIRA – Best Customer Service
- iTrustCapital – Lowest Fees
- Coin IRA – Best Customer Experience
- Regal Assets – Most Investment Options
A Detailed List of the Best Crypto IRA Companies
Earning a high-quality investment is tough enough without having to sift through all the options. Luckily, I’ve done the work for you by reviewing some of the best Bitcoin IRA companies out there! If you want more information on what each company has to offer and their credentials, keep reading.
1. Bitcoin IRA – Best Overall Company
One of the best Bitcoin IRA companies is called “Bitcoin IRA.” This company provides you with offline storage for your retirement accounts and self-trade cryptocurrencies. It also has a sleek design that allows easy access to buy, sell, track prices or monitor portfolios in an accessible dashboard.
Pros
- Easy to set up and track investments.
- Assets insured for $100 million.
- Offline asset storage is 100% guaranteed.
- Earn up to 6% on cash and crypto
Cons
- Investment in cryptocurrencies is a high risk.
- Your preference for cryptocurrency prices may vary.
2. BitIRA – Best Customer Service
BitIRA is a self-directed IRA and cryptocurrency storage system that allows you to store your funds in Bitcoin. Cold storage measures are used for top quality security, ensuring only authorized access granted.
BitIRA is a new company that has taken the bitcoin to IRA industry by storm. They have some of the best security and customer service around, which makes them an ideal fit for people who want reliable storage options with low fees.
Pros
- Stores digital currency in an encrypted crypto wallet for top security.
- Decentralized from large banking institutions.
- It offers at least six digital currencies for placement in an IRA
Cons
- Investment risks are present.
- People who rollover from a 401(k) might not be eligible for a Bitcoin IRA.
3. iTrustCapital – Lowest Fees
If you are looking for a trustworthy company to store your cryptocurrencies, then iTrustCapital is the place. It offers low minimums and an affordable trading fee which will save time when transferring money between countries. Moreover, it has tax benefits if you have Bitcoin IRAs!
Finding time-consuming tasks to do around the house can be difficult. A solution for those who have a lot of free time is iTrustCapital with its 24 hour transaction services at 1% and limitless storage & exchanging cryptocurrencies which are available now, giving you an efficient way to make money from your Bitcoin investments or just saving tons of cash in general!
Pros
- Affordable account fees at about $30 a month.
- Buy and sell 24 hours a day.
- Annuities liquidate with no tax implications.
Cons
- Setting up an account takes some time.
- Limitations are still present despite many available features.
4. Coin IRA – Best Customer Experience
Coin IRA offers an easy way to invest your retirement money in cryptocurrency, helping you diversify and stake a claim on this emerging currency. Coin IRA allows customers to purchase many cryptocurrencies, including Bitcoin Litecoin Ethereum XRP.
Coin IRA is a cryptocurrency investment service that has been around since 2014. They offer QuickCoin, which allows you access to skilled consultants and fraud protection while giving no maximum purchase limits. All transactions are recorded in their Blockchain and tracked by your custodian when making additional investments as well!
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Pros
- It allows you to purchase many types of cryptocurrencies.
- Reliable custodians track asset transactions.
- Reliable security of funds.
Cons
- Early distributions of IRA before the age of 59 ½ may result in penalties.
- You’re required to take distributions from cryptocurrency IRA once you turn 72.
5. Regal Assets – Most Investment Options
Regal Assets is a company that provides you with an array of investment opportunities. You can invest in their varied portfolio, which includes products such as gold and silver, or even other currencies like Bitcoin and Litecoin.
To protect your future and make smart investments, you may want to explore portfolio options with this company. You can invest in precious metals or cryptocurrencies for protection and profit potential- but what about the IRA?
Pros
- Transparent fees and commission schedules.
- The company provides local and offshore storage options.
- Investments in cryptocurrencies and precious metals.
Cons
- Risks for precious metal and cryptocurrency investments are prevalent.
- Missing the 60-day redeposit period for retirement accounts results in penalties.
Cryptocurrencies are a hot topic in the financial world, and have been for quite some time.
Bitcoin has seen an incredible rise in price since the beginning of 2017, and people are debating about its use and prominence. Investors have been flocking to Bitcoin as a long-term option for retirement plans because they see it having more potential than other investments such as stocks or bonds.
Is this trend something worth considering?
Is it reasonable to add Bitcoin and other cryptocurrencies to your retirement portfolio?
These are a couple of the questions we will look at an answer in this article.
But first, let’s review what cryptocurrency is and how it works.
What is Cryptocurrency?
A cryptocurrency is a digital currency that uses encryption technology to control the creation of its units and verify the transfer of funds. It does not rely on any central bank, meaning no single country or individual has power over it’s value. Cryptocurrencies are independent from physical existence; they only exist digitally through blockchain technology.
Blockchain
Blockchain is a new technology that has the potential to revolutionize many industries. It’s an underlying tracking and encryption system with accuracy unmatched by any other current systems. Imagine being able to transfer money from one person without having it go through all of those middlemen!
Blockchain could change how we do business, vote, or communicate online forever because there will be no need for intermediaries in these processes anymore like banks who hold your assets hostage while they take fees every time you make transactions as well as when funds are sent out on behalf of others- not just themselves!
Bitcoin (and Other Cryptocurrencies)
Bitcoin is a type of cryptocurrency that was invented in 2009 and has become the most well-known since then, with other types such as Litecoin or Ethereum being created.
In 2010, Bitcoin had its first major spike in value around $0.06 per bitcoin to over $1 by January 2011 but dropped back down below this range slowly throughout 2012 before heading up again after September 2013 for an all time high near $2050 at one point early 2017 on December 17th when it reached just under 20% higher than its November 30th price (around 8 days) which equals about 11%.
The next largest cryptocurrency available is called Ethereum which does not have nearly as much acceptance among retailers yet nor do they provide any form of benefit like mining bitcoins.
What is a Cryptocurrency IRA?
Many people are growing more and more interested in cryptocurrency. One option is to open a self-directed IRA, which gives you the opportunity to invest your retirement savings into cryptocurrencies like Bitcoin or Ethereum via an account with a custodian who offers one type of investment plan.
Self-directed IRAs differ from Traditional IRAs because they allow for alternative investments such as land, developed real estate, precious metals (e.g., gold), private businesses/startups that may not be publicly traded on stock exchanges yet but have potential future value growth opportunities if successful; even farms!
The IRS does not permit these forms of Alternative Investments in traditional IRAS including crypto assets like bitcoin or etherium at this time so it’s important to find out what types are available.
Did you know that most household brokerage firms don’t typically offer these kinds of services? That’s because custodians for IRAs are generally companies who specialize in them. But technically, anyone can open an IRA without a custodian; however, it is highly recommended to use one anyway due to the complexity and extra administrative burden from managing your crypto coins on your own.
RetirementInvestments.com offers Bitcoin-based self directed cryptocurrency IRAs with top notch security and insurance against theft as well as cold storage solutions (more about this later).
Why Add Cryptocurrencies To Your IRA?
Cryptocurrency has been making headlines recently and a lot of people are wondering why they should add it to their retirement fund. Cryptocurrencies have seen incredible performance in the last year, which is one reason some investors might consider investing in them for IRA purposes as well – diversification and long-term appreciation. Let’s explore these two reasons further!
Diversification
Diversification is the number one reason to consider adding cryptocurrencies like Bitcoin and Ethereum to your IRA. Yale Economics Professor Aleh Tsyvinski has found that, for optimal investment portfolios, diversifying at least 6% of assets into cryptocurrency could yield significant benefits in the long run. Even those who are less enthusiastic about investing should hold a minimum 4%. Impressive recommendations from an expert!
His study examined Bitcoin, Ethereum, and Ripple using the Sharpe ratio (an investment ratio that measures return versus risk) and found that these three cryptocurrencies enjoy a higher potential return versus similar assets despite some of the added risks of higher volatility.
Although his research only looked at three out of all available cryptocurrencies on an industry-wide basis [INSERT DATA], it is still indicative enough to suggest there are significant advantages in investing in this particular class over other securities you could put into your IRA account like stocks or bonds for example.
Long-Term Appreciation
Bitcoin’s volatility is actually an argument for a long-term approach to the currency and adding it to retirement accounts. When money is put into a retirement account, its automatically converted into a long-term investment. Investors need to weather volatility in their retirement account so that they can achieve the growth of Bitcoin over time.
Bitcoin has been notoriously volatile since inception but this should be expected given that cryptocurrency markets are still relatively small, only worth $206 billion compared with gold at $7 trillion dollars according Investopedia . The good news for investors who want access more than just stocks or bonds as means of building wealth during these divisive times? Cryptocurrency offers them another opportunity despite being fairly new on Wall Street proper.
The risks of investing in stocks are well-known, but they also come with high rewards. If you feel like the market is going south and want to protect your investment portfolio from these losses without risking missing out on future gains then a cryptocurrency could be just what you need.
The volatility that comes along with buying into cryptocurrencies may not sit right for some investors who fear an inevitable crash might happen at any time or those people who can’t stand losing money even if it means gaining more later down the line. This cognitive phenomenon called loss aversion has been shown to exist among humans because we would rather miss out on possible future earnings than have our existing assets decline in value before us eyes – whether this decision makes sense logically or not! Cryptocurrency.
Is Cryptocurrency Safe?
Cryptocurrencies, the new form of money that is taking over our world.
The security behind cryptocurrency can be established by looking at two things: the Blockchain technology and how it’s bought via exchange or investment custodian. For example, Bitcoin primarily mimics both its underlying Blockchain system as well as their purchase process (in this case being an investment).
Blockchain Security
Blockchain is a revolutionary technology that has the ability to reshape our world. It provides security, immutability and democracy through three defining features: it’s tamperproof, immutable and democratic. One of the primary reasons for its success is due to how secure blockchain makes transactions by creating an entirely new way of allowing people who don’t know each other or trust one another earn digital assets in ways that have never been possible before now!
- Decentralization
- Cryptography
- Consensus
Decentralization of the blockchain works by sharing everything with every user of the blockchain.
Bitcoin is a decentralized currency that relies on blockchain to exist. Transactions are made without the need of a central bank, which provides users with complete control over their private keys and transactions; an individual who owns Bitcoin cannot take it back from you if they owe you money!
With this kind of security in place there can be no single point-of-failure within the system meaning that all payments will go through as long as at least one node (person) remains active within its network.
Cryptography is math that takes place within the blockchain to hide the true identity of any one block.
It’s like a password but on steroids.
This is the type of complex mathematical processes that encrypt blockchain data and protect it from outside intrusion.
Consensus is the process by which the network validates when blocks are added to the blockchain.
There is a reason hackers are targeting cryptocurrency. Bitcoin, for example, has the monetary value as well as security problems like other forms of currency. However, blockchain technology makes it one of the strongest and most hack-proof technologies in existence today. Cryptocurrency mining organizations or vulnerable exchanges will be targeted by these malicious individuals who don’t want to break into blocks – they just want your coins!
Hackers have been attacking cryptocurrency exchanges in recent years with millions of dollars being stolen. These thefts are a dark and unfortunate side to the world of crypto-investments because they reveal the vulnerabilities that exist because not all companies who run these exchanges take necessary precautions when setting up, making it essential for investors to review their choices before investing.
Onto the Finer Details of a Cryptocurrency IRA
Before we move on let’s quickly recap what we have covered:
- What cryptocurrency (and blockchain) is
- What a cryptocurrency IRA is and how it is different from a traditional IRA
- Why you would add cryptocurrency to your IRA
- The digital security, or safety, of cryptocurrency and blockchain technology
In the next few sections, we will get into the finer details of a Bitcoin or Cryptocurrency IRA.
We’ll answer questions like:
- How do I set up a self-directed IRA?
- Should I manage it myself or have a company do it for me?
- If I have a company do it for me, which one should I use?
- Why would I use them?
- What are the overall pros and cons of investing in cryptocurrency?
It’s the most common question we get: How do I start a self-directed IRA? The answer is that it takes some work up front, but will save you time and headaches in the future.
Self directed IRAs are booming because they take more effort at first to set them up than traditional IRAs (though they also have their benefits). As such, here are five of what we think might be your top questions about setting one up yourself!
How Do I Set Up A Self-Directed IRA?
When you go to set up a self-directed IRA, be sure to find an institution that offers investments in crypto. However, not all traditional institutions offer cryptocurrency as an investment option for retirement plans; this leaves many people looking elsewhere and has led some businesses like BitIRA or Covestor pivoting towards cryptocurrencies themselves so they can meet the growing demand of investors who want exposure to Bitcoin’s potential while saving for their future.
When it comes time to choose where your money is going – whether because we’re talking about 401ks at work or IRAs at home – there are few things more important than finding out what kind of options exist before making any decisions about which way you’ll invest your savings with them next year?
Two of the industries biggest are Coin IRA and Bitcoin IRA. They both offer cryptocurrency IRAs, which allow you to invest in a broad range of cryptocurrencies. Setting up an account with either one (or similar) company will take care of the “set-up” portion for your self directed IRA as well!
