With a Bitcoin IRA, you can add Bitcoin, Ethereum, Stellar Lumens, and other cryptocurrencies to your retirement account. Many investment experts would advise against putting risky cryptocurrencies in your retirement account, but as they grow in popularity, there are more Bitcoin IRA companies to choose from.
IRA and Roth IRA accounts offer tax benefits that can be quite valuable throughout your investing years and well into retirement. We combed the web and looked at the details of 10 top providers to find the best Bitcoin IRA companies for investors. Keep reading for the details on which Bitcoin IRA may be right for you.
The Best Bitcoin IRA Companies of 2021
- Best Overall: Bitcoin IRA
- Best for Large Balances: iTrustCapital
- Best for Security: BitIRA
- Best Self-Directed: Broad Financial
- Best for New to Crypto: BlockMint
Best Bitcoin IRA Companies
- Bitcoin IRA
- Broad Financial
- Final Verdict
- Compare Providers
BEST OVERALLBitcoin IRA
Why We Chose It: Bitcoin IRA is our top choice due to its well-rounded offering that includes multiple account types, support for the most popular cryptocurrencies, the potential to earn interest on crypto deposits, and a platform that’s quick and easy to use.What We Like
- Sign up and fund an account in just a few minutes
- Good security with cold storage and insured accounts
- 24/7 trading online or in the app
What We Don’t Like
- Pricing isn’t transparent
- Limited list of supported currencies
If you’re looking for a cryptocurrency IRA, Bitcoin IRA may be a good fit since it features a cryptocurrency IRA account that works well for a wide range of users, from those who are brand new to cryptocurrency to those who have years of experience. This company specializes in Bitcoin IRAs and offers a variety of IRA accounts as well as a Bitcoin 401(k). It takes less than five minutes to sign up and create an account.
Based on the company’s price charts, there is support for Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Stellar Lumens, and Zcash. Trades are placed in real time 24/7. In addition to price appreciation from Bitcoin and other currencies, you can also lend assets to earn up to 6% APY (as of March 2021). Accounts are held in a secure digital wallet. Bitcoin IRA customer assets are stored on offline cold storage through BitGo Trust, and it offers up to a $100 million insurance policy to give your assets additional security.
The biggest downside is non-transparent pricing, which may vary depending on the size of your initial deposit when starting your account. You will need to call the company and speak to a representative regarding fees for the type of account you open. Note that there is a $3,000 minimum but no investment cap on your Bitcoin IRA accounts.
BEST FOR LARGE BALANCESiTrustCapital
Why We Chose It: We picked iTrustCapital as the best for large balances due to relatively low trade fees with a transparent, fixed monthly fee.What We Like
- Relatively low 1% trade fee for cryptocurrencies
- Transparent $29.95 monthly fee
- Support for 24/7 self-directed trading
What We Don’t Like
- Required monthly cost is high for smaller accounts
- $2,500 account minimum and $1,000 contribution minimum
iTrustCapital features IRA accounts that support both cryptocurrencies and precious metals. You can choose your investments in the account from a list of six cryptocurrencies plus gold and silver. Currently supported coins include Bitcoin, Litecoin, Ethereum, Bitcoin Cash, EOS, and more. The $2,500 minimum and $1,000 requirement for additional contributions make it better for those with larger balances and assets, not brand new IRA investors.
Pricing is clear and transparent and makes sense for larger accounts. There is a required $29.95 monthly fee to maintain an account plus a 1% fee to trade cryptos. That’s much cheaper than some competitors. Accounts with cryptocurrency are held through a custodial relationship with Coinbase Custody. Balances are protected by a $370 million insurance policy between Coinbase Custody and Curv.
The price transparency here is a big positive. Additionally, the company takes security seriously, offering both cold and cloud storage.
BEST FOR SECURITYBitIRA
Why We Chose It: We chose BitIRA as best for security because it uses cold storage to protect your assets with additional insurance for every dollar invested.What We Like
- Cold storage takes your crypto assets offline so they can’t be accessed by hackers or other cybercriminals
- Dollar-for-dollar insurance protects the full value of every customer’s IRA account
- Support for eight popular cryptocurrencies in a self-directed account
What We Don’t Like
- $195 annual fee and $50 account setup fee
- Monthly 0.05% storage fee
- Some popular currencies are not supported
BitIRA is a self-directed cryptocurrency IRA provider with a focus on security, helping it clinch the top spot in this category. Your account is protected with standard online security tools like encryption and multi-factor authentication. It goes multiple steps further to protect your investments, notably using cold storage and high levels of insurance. Funds are held through custodial partnerships with Equity Trust Company and Preferred Trust Company.
Cold storage means your cryptocurrencies are stored on an offline hardware wallet. Only someone with physical access to the wallet and the unlock codes can get in. And if that doesn’t work, they also insure every deposit dollar-for-dollar. That’s more than you get from the FDIC, SIPC, or most major brokerages.
BitIRA offers traditional, Roth, SEP, and SIMPLE IRA accounts. It currently supports Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Bitcoin Sv, Zcash, and Stellar Lumens. Accounts cost $50 to establish and $195 per year to maintain. The biggest negative is the 0.05% storage fee, which increases in cost as your balance rises. But if security is your primary concern, that extra cost could be worth it.
BEST SELF-DIRECTEDBroad Financial
Why We Chose It: We like that Broad Financial charges a flat, predictable annual fee and gives you full “checkbook control” over your cryptocurrency wallet to buy and sell any currencies you choose.What We Like
- Use any cryptocurrency exchange or wallet provider
- Directly manage your investments
- Predictable, flat annual fee
What We Don’t Like
- Fairly high setup fee
- You are in charge of your security
Broad Financial offers a unique Bitcoin IRA option where you have checkbook control over your investments. When the account holder signs up for a new account, Broad Financial creates a business entity with its own checkbook. Any purchases made with that checkbook are assets owned by the IRA. The account is intended for cryptocurrencies, but you can buy real estate, private stock, and other assets with the IRA as well.
There is a $1,295 account setup fee to get your new IRA LLC, then you pay $300 per year to keep the account. Once your account is funded, you can use the IRA to fund a cryptocurrency investment, which is legally part of your retirement account and subject to the same rules as any other traditional or Roth IRA.
This means you can choose pretty much any virtual currency you want from market leader Bitcoin to lesser-known currencies, though those may come with outsized risk. Once you buy the coins, you are also responsible for storage, whether that’s in a trusted online cryptocurrency account or your own offline wallet. What you buy and how you secure your currency is up to you.
BEST FOR NEW TO CRYPTOBlockMint
Why We Chose It: We chose BlockMint as the best Bitcoin IRA for those new to cryptocurrencies because advisors from BlockMint will choose a portfolio of currencies for you.What We Like
- Advisors help you choose a custom portfolio of cryptocurrencies
- Cold storage keeps your assets more secure
What We Don’t Like
- Very high transaction fees for purchasing cryptocurrencies
- $10,000 minimum starting investment
BlockMint is a better choice for those who don’t want to enter their own cryptocurrency trades and want someone else to essentially handle the entire account for them. While you don’t need to pick your own cryptos, you will pay a big fee to have BlockMint do it for you; BlockMint charges 15% to purchase on top of other fees.
Some of those other fees include a 2.5% purchase fee and 1% sell fee, $195 annual maintenance fee, and 0.05% monthly storage fee, all of which are imposed by the account custodian, Equity Trust.
According to the BlockMint website, it supports Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, and Ethereum Classic, though the Ripple XRP asset probably isn’t offered, as that asset was effectively shut down by the SEC.1 In either case, that’s a fairly short list but does include the most popular coins.
While the fees are high (and numerous), the benefit is that BlockMint handles most everything for you. You don’t need any computer skills to use BlockMint, as you can start online or by phone, and BlockMint assists with any IRA or 401(k) rollovers to fund your account.
BlockMint is owned by Lear Capital, a company with over 20 years of experience in gold and precious metals investments.
Cryptocurrencies are very risky and volatile, so they are not right for everyone and may not make sense for your retirement account. But if you believe cryptocurrencies are the way of the future, any of these providers could do a good job getting you started with a Bitcoin-based IRA.
Top choices include Bitcoin IRA, with something for everyone. Broad Financial is great for flexibility due to checkbook control. And BitIRA uses extremely high levels of security. Just keep an eye on the fees, features, and available currencies and you should be able to pick the Bitcoin IRA that’s right for you.
|CRYPTOCURRENCY IRA PROVIDER||WHY WE CHOSE IT||KEY FEATURES|
|Bitcoin IRA||Best Overall||Convenient features and platform|
|BitIRA||Best for Security||Offline cold storage and other security features|
|Broad Financial||Best Self-Directed||Checkbook control|
|iTrustCapital||Best for Large Balances||Relatively low flat monthly fee and trading fees|
|BlockMint||Best for New to Crypto||Advisor helps choose your portfolio|
What Is a Bitcoin IRA Company?
A Bitcoin IRA company is a business that facilitates your opening and maintaining an individual retirement account (IRA) with cryptocurrency assets, notably Bitcoin.
How Does a Bitcoin IRA Work?
When you open a Bitcoin IRA, you can buy and sell Bitcoin, Ethereum, and other cryptocurrencies similar to how you would buy and sell stocks and funds in a retirement account with a traditional brokerage.
Most legal U.S. residents can open an IRA, which generally requires a Social Security number and other contact details. You can open an IRA at any time, though there are annual limits imposed by the IRS on how much you can contribute. If you have an existing IRA, Roth IRA, 401(k), or other retirement accounts, you may be able to roll over your balance into your new Bitcoin IRA if you’d like.
Traditional IRAs are funded with pre-tax dollars, which means taxes are deferred until you withdraw in retirement. Roth IRA contributions are taxed, but future withdrawals are tax-free. Learn more about traditional IRA vs. Roth IRA accounts here.
Are Bitcoin IRAs Safe?
Bitcoin IRA providers typically provide account security and insurance, but cryptocurrencies are a relatively new asset and considered very risky. It’s possible that cryptocurrency investments may hold zero value at some point, so research these assets to decide if they make sense for your retirement account.
How Are Bitcoin IRA Companies Different From Traditional IRA Companies?
Traditional brokerage providers of IRA accounts generally focus on stocks, bonds, mutual funds, ETFs, and other traditional marketplace investments. Bitcoin IRA companies allow you to buy, sell, and hold digital currencies like Bitcoin instead of stocks.
Some traditional brokerages have begun to support cryptocurrencies, though it isn’t common with most mainstream brokerages. Anyone serious about cryptocurrency for retirement is likely going to be best off with a dedicated cryptocurrency IRA provider.
How Much Bitcoin Do I Need to Retire?
There is no set amount of Bitcoin (or any other currency) needed to retire. Your needs depend on your budget and lifestyle as well as the market price of your chosen currencies upon your retirement.
How We Chose the Best Bitcoin IRA Companies
To pick the best Bitcoin IRA companies, we looked at 10 providers with a focus on cost, features, security, and available currencies. This industry has some less-than-reputable players, so it’s important to look at each company’s security, history, and industry standing when picking an IRA provider. Cost and security are the most important factors when picking your own Bitcoin IRA.
All of the providers on our list offer secure, insured, and easy-to-fund IRAs.