Best Bitcoin IRA Companies to Consider in 2024
Ensuring financial security in retirement is an aspiration for just about any individual. At the same time, achieving security in your silver years takes careful investment planning and choices. Over the last few years, cryptocurrency and Bitcoin (BTC) have begun playing a key role in retirement planning schemes. A number of Bitcoin-based individual retirement accounts (IRAs) have arrived on the market, broadening options for retirement-focused investors.
The first crypto IRAs appeared in 2016, offering cryptocurrency as a legitimate asset for investment. While the leading crypto IRAs on the market feature a wide variety of crypto coins on offer, Bitcoin remains by far the most popular option. First, compared to altcoins, Bitcoin benefits from its leadership position and higher levels of trust enjoyed in the market. Its popularity surged notably after the Securities and Exchange Commission (SEC) granted approval for Bitcoin spot ETFs in early January 2024. Secondly, it offers liquidity levels unmatched by other leading cryptos. Finally, Bitcoin’s volatility is known to be at least somewhat lower compared to Ethereum (ETH) and other large-cap crypto coins.
Given all these factors, it’s no wonder that Bitcoin remains vastly more popular for IRA products than any other cryptocurrency and that, in nearly all cases, crypto IRA providers have a Bitcoin IRA on offer.
In this review, we’re taking a closer look at the best Bitcoin IRA products in 2024 — leaders in their own categories that can aid you in your retirement planning goals.
Key Takeaways:
Bitcoin IRAs are retirement accounts that let you invest in Bitcoin, an option typically not available under traditional IRA accounts.
There are two main types of Bitcoin IRA products — standard IRAs and Roth IRAs — each with its own unique advantages from a taxation perspective.
When choosing the best Bitcoin IRA, there are two main factors to consider: your knowledge of crypto, and the features you value most in a retirement product.
Comparing the Best Bitcoin IRAs
IRA investment opportunities based on Bitcoin are now a fast-growing area within the financial planning industry. By 2024, few serious retirement investors would dismiss Bitcoin, at least as a potential option, for their IRAs. High growth potential, diversification benefits and, under some circumstances, capital gains tax exemptions — all of these advantages come with including Bitcoin in your IRA.
So, which Bitcoin IRAs on the market suit your retirement investment goals? The answer depends upon what you specifically value in an investment product, and your level of expertise with crypto, among other factors.
It should also be noted that most of the leading Bitcoin IRA companies offer both standard and Roth IRAs. These two types of IRA products differ somewhat in the way your contributions and withdrawals are treated in terms of taxation. Standard IRAs allow you to make tax-deductible contributions, while your retirement withdrawals are taxable. In contrast, Roth IRA contributions aren’t tax-deductible as they are created with after-tax dollars, but retirement withdrawals are tax-free.
With these considerations in mind, we’ve decided to look at a number of critical areas for investors when evaluating the best Bitcoin IRA products — security, fees, investor experience, self-directed investment opportunities and beginner-friendly features.
Top Bitcoin IRAs
Best Overall — Bitcoin IRA
Best For Beginners — iTrustCapital
Best Security — BitIRA
Best For Low Fees — BlockMint
Best Investor Experience — Equity Trust
Best for Self-Directed Investment — Broad Financial
Best Overall — Bitcoin IRA
When it comes to the best overall Bitcoin IRA product, few providers on the market can match the aptly named Bitcoin IRA™ — America’s first cryptocurrency-focused retirement investment company. Its crypto IRA platform was launched in 2016, and over the years has built upon its first-mover advantage in the market. It’s by far the most popular Bitcoin IRA product chosen by retirement investors.
While the other providers we cover below have particular strengths in specific areas, Bitcoin IRA shines thanks to its optimal balance of security, fees, time in the market, insurance options, ease of use and trading flexibility.
Bitcoin IRA offers a flexible trading platform that’s open 24/7. It also features generous insurance coverage of up to $700 million — the highest limit among the leading Bitcoin IRA products. In addition, the minimum investment requirement of $3,000 at Bitcoin IRA is also relatively modest. For an established provider of this scale, that’s a highly reasonable requirement.
Bitcoin IRA’s security features are also top-notch. The company has partnered with BitGo, the world’s leading Bitcoin transaction processor, to hold client funds in secure cold storage using military-grade, multi-key protection features.
Bitcoin IRA’s transaction fees aren’t the lowest in the market, although they’re still reasonable for the most trusted crypto IRA provider on the block. The standard fee applicable per transaction is 2%, and there’s a one-time initial deposit fee of between 0.99% and 4.99%, depending upon the amount invested.
Best For Beginners — iTrustCapital
Bitcoin IRAs are an emerging area, so for many investors these products are still a novelty. That's why a product in this niche must be as beginner-friendly as possible. Among Bitcoin IRA providers, iTrustCapital has caught our eye with its simplified platform and fee structure — precisely what a newbie to the Bitcoin IRA field needs
iTrust offers a simple flat fee of 1% on all transactions. No other charges are involved — no deposit fees, no monthly account-keeping fees or any other fee varieties other providers like to pepper their products with. You just pay 1% on any transaction without having to worry about incurring any hidden charges. For beginners, this is an ideal setup.
The only other fee that Bitcoin IRA investors might incur at iTrust is the $75 charge to convert a standard IRA to a Roth IRA.
iTrust’s minimum investment requirement is also very low — only $1,000. For many beginning investors, the ability to start out with as little capital commitment as possible is critical. In that respect, iTrust’s modest requirement of just $1,000 is a great beginner-friendly feature.
Best Security — BitIRA
The security of your investment funds is a crucial consideration when choosing a Bitcoin IRA. Low fees and flexibility of trading won’t be of much help if your Bitcoin holdings are compromised due to a security breach. To be fair to the companies in our review, they all employ multiple measures to protect client funds.
However, among the leading Bitcoin IRA providers, one stands out with a particular focus on security — BitIRA® is among the older providers in the Bitcoin IRA field. Established in 2017, this company has taken client funds’ security to a completely new level.
BitIRA uses multiple measures to ensure that even the most persistent and well-resourced Bitcoin hackers won’t be able to get anywhere close to your digital retirement funds. First, BitIRA has partnered with Ledger Enterprise, one of the world’s leading digital asset storage specialists, to implement multi-signature authorization for crypto asset storage and access. The keys for access to clients’ Bitcoin are held on multiple devices in a decentralized way to ensure that an individual point of failure doesn’t jeopardize the overall security of your funds.
Secondly, BitIRA implements so-called “end-to-end” protection for client funds. With end-to-end insurance, your investment is protected at all stages and in all states of the funds’ lifecycle, be it purchase, storage or any point of transfer.
Finally, BitIRA fund storage practices are regularly audited by third parties to ensure adherence to SOC 2 Type 2 certification standards. Companies serious about security and protection choose to implement SOC 2 Type 2 certification, a set of rigorous practices and internal controls to ensure the security, integrity and confidentiality of data or assets.
Best For Low Fees — BlockMint
With a fee of just 0.5% per trade, California-based BlockMint offers the lowest fees among Bitcoin IRA providers — and this crypto IRA company doesn’t charge account-keeping or deposit fees, either. If you’re after the lowest possible transaction fees, look no further than BlockMint.
As an alternative to the 0.5% fee, the company also offers an entirely commission-free account for a yearly fixed charge of $499. Thus, if you prefer to make frequent trades, you might choose this option to further minimize costs.
BlockMint's Bitcoin IRA also features generous $600 million insurance protection, along with military-grade cold storage of your funds. When you open an account, you’re assigned a personal agent to assist with your inquiries — always a great feature for Bitcoin IRA products, given their relatively novel nature.
Best Investor Experience — Equity Trust
Established in 1974, Equity Trust® is one of the oldest providers of IRA, Roth IRA and other investment products to individuals and businesses. Over the last few years, this established retirement investment company has developed comprehensive crypto and Bitcoin IRA products, leveraging its multi-decade experience.
Whether you’re after a Bitcoin-based IRA or Roth IRA, Equity Trust has unmatched variety, thanks to its integrated platform with multiple crypto IRA providers. By buying a Bitcoin IRA with Equity Trust, you’ll get to enjoy both the robust security of the Equity Trust platform and the expertise and service of its providers.
Thanks to the company’s deep expertise in the retirement investment field and a wide variety of accounts and assets on offer, you’re given an unprecedented choice of various investment options. In addition to Bitcoin and crypto, Equity Trust offers investments in mutual funds and stocks, as well as alternative investments in the areas of precious metals, real estate, private equity and more. This provider truly stands out in terms of the investor experience, from choice of investment options to the guidance you receive throughout the whole onboarding process.
Equity Trust isn’t among the cheapest Bitcoin IRA companies. You’ll have to pay a certain premium for the privilege of having an excellent investor experience. Annual fees on your Bitcoin IRA or Roth IRA product will depend upon the overall size of the portfolio you maintain with the company. The lowest yearly fee is $225, for accounts under $15,000. This cost goes up on a sliding scale, with the highest fee set at $2,250 for accounts above $2 million. There’s also a one-time account opening fee of $50.
Best for Self-Directed Investment — Broad Financial
Traditional IRA and Roth IRA accounts have typically been restricted to investments in tightly regulated assets — usually stocks, bonds, mutual funds and ETFs. Self-directed IRAs (SDIRAs) allow investors to access alternative investment assets, including cryptocurrencies. In that respect, all Bitcoin IRA and Roth IRA products are classified as self-directed accounts. However, the degree of freedom you get in terms of structuring your investments in an SDIRA account varies with different providers.
Few companies in the market can rival Broad Financial in terms of both the freedom and flexibility of your self-directed investments under a Bitcoin IRA or Roth IRA. Broad Financial's Bitcoin IRA Trust gives you complete freedom in terms of allocating and mixing different asset classes. In addition to Bitcoin and other cryptocurrencies, you can include a wide range of other assets, including real estate, private equity, private lending options like mortgages, and even precious metals.
Unlike most other providers, Broad Financial gives you the ability to conduct transactions using a checkbook linked to your IRA or Roth IRA account. If the freedom to make your own choices under a Bitcoin IRA is important to your investment planning, Broad Financial is the optimal provider out of the main options available on the market.
The company doesn't charge transaction fees for its IRA or Roth IRA accounts. However, a $1,195 initial account setup fee and a $420 annual maintenance fee are involved.
Final Verdict
The ultimate choice for your preferred Bitcoin IRA or Roth IRA will depend upon what features and characteristics you value most in a retirement product. If you’re a beginner making initial steps in the world of Bitcoin and retirement investment, we suggest iTrustCapital’s user-friendly platform that features a simple, straightforward fee structure, no hidden charges, and a modest initial investment of just $1,000.
If safeguarding your investment is your top priority, BitIRA’s comprehensive protection mechanism is for you. On the other hand, for those interested in the lowest fees possible, it’s hard to ignore BlockMint’s 0.5% transaction fee with no other charges involved.
If an optimal investor experience and diverse choices are your priorities, the Equity Trust platform is worth considering, while for investors who prioritize freedom in directing their investments and appreciate the convenience of a checkbook option, Broad Financial is the top pick.
Finally, Bitcoin IRA is a great choice for those without a specific preference who seek a well-rounded product with balanced features across all categories.
Bitcoin IRAs: Frequently Asked Questions (FAQs)
How Do Bitcoin IRAs Work?
Bitcoin IRAs are a form of self-directed IRA retirement account that allows you to invest in either Bitcoin or a mix of Bitcoin and other assets. Depending upon the rules applicable to the account, you might be able to hold only Bitcoin, or a combination of Bitcoin and other cryptocurrencies under your IRA. Moreover, some providers allow you to mix different classes of alternative investments under the same IRA or Roth IRA. Using these products, you can combine Bitcoin investments with other asset types like real estate, private equity, precious metals and more.
IRA accounts, including Bitcoin IRAs, allow you to make tax-deductible contributions to the limit of $7,000 per year if you’re under 50 years old, or $8,000 if you’re 50 or older. When you reach the age of 59½, you can withdraw from your IRA account without any restrictions. Any withdrawals you make are taxable.
Roth IRAs work differently from standard IRAs. Contributions to Roth IRA accounts, including Bitcoin Roth IRAs, aren't tax-deductible, but withdrawals from these accounts in retirement are tax-free.
Why Invest in a Bitcoin IRA?
Bitcoin IRAs offer several advantages over IRAs made up of traditional asset classes like stocks, bonds or mutual funds. You might consider opening a Bitcoin IRA, based on the following factors.
1. A Bitcoin IRA might generate a higher rate of return than a traditional IRA. While Bitcoin is known for its volatility, it's also an asset with considerably higher growth potential than the stock market or other traditional investment options. The chart below shows the growth rates for Bitcoin and the Vanguard 500 Index Fund ETF (VOO), a leading fund product that closely tracks the stock market's primary index, the S&P 500. Growth rates shown are for the last five years. The results clearly indicate that in four out of the five years, Bitcoin has beaten the stock market in terms of returns, typically by a wide margin.
2. A Bitcoin IRA can be an excellent way to diversify your retirement portfolio. Many individuals have an overreliance on stocks, mutual funds and ETFs in their portfolios. Diversifying such portfolios with Bitcoin can be a great way to protect against stock market shocks, as Bitcoin is typically uncorrelated or weakly correlated with traditional financial asset classes. That being said, with the recent SEC approval of Bitcoin Spot ETFs in early January 2023, Bitcoin ETFs can be another great alternative to invest in.
3. Using a Bitcoin Roth IRA can help you avoid capital gains taxes. If you sell Bitcoin and realize a gain, you’re normally liable to pay the capital gains tax. However, since any investment in a Roth IRA is made with after-tax dollars, your capital gain, in this case, is free from taxes.
Are Bitcoin IRAs Legit?
Yes. Bitcoin IRAs are a totally legitimate product for retirement investment. While most IRA and Roth IRA providers on the market focus on traditional asset classes, some companies, including those we’ve included in our review above, offer Bitcoin-based IRA and Roth IRA accounts.
Any Bitcoin or crypto IRA or Roth IRA on the market falls under the definition of a self-directed account. Only some providers specialize in self-directed IRA products. The choice among these providers is much more limited as compared to that for traditional IRA companies. When evaluating a Bitcoin IRA provider, make sure that they’re authorized to offer self-directed investment options.
Are Bitcoin IRAs Safe?
It’s safe to invest in a Bitcoin IRA If you choose a reputable provider with a solid track record on the market. Additionally, it's crucial to thoroughly research the practices and standards the provider uses to store your Bitcoin funds. Make sure that the company you choose employs high-grade cryptographic protection methods and utilizes safe cold storage options. Insurance limits and terms are also among the critical bits of information to become acquainted with.
What Is the Minimum Deposit for a Bitcoin IRA?
Minimum deposit amounts vary among different Bitcoin IRA providers. Typically, initial amounts at reputable providers range from about $1,000 to several thousand dollars. While some smaller providers may offer very low minimum deposits, perhaps as low as $10 to $50, some of these companies might have additional fees to offset the meager initial deposit amounts. Therefore, it's imperative that you study the complete fee schedule when selecting a Bitcoin IRA product. Low deposit requirements should be only one element in the overall selection process.
How Are Bitcoin IRAs Taxed?
The fundamental taxation principles applicable to Bitcoin IRAs and Roth IRAs are similar to their traditional counterparts. Bitcoin IRAs can be funded with tax-deductible dollars, but your withdrawals will be taxed. In contrast, Bitcoin Roth IRAs are funded with after-tax dollars, making its withdrawals tax-free.
Bitcoin Roth IRAs can be a great investment vehicle to avoid the capital gains tax applicable to the sale of cryptocurrency. The United States Internal Revenue Service (IRS) has traditionally applied the capital gains tax to any Bitcoin sale from which a gain is realized. However, any such sale under a Roth IRA account would be free from capital gains taxation, because Roth IRAs are funded with after-tax dollars. This specific benefit doesn’t apply to standard Bitcoin IRAs, as these accounts’ contributions are based on pre-tax funds.
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