Bitcoin is a leading digital currency that has been around since 2009, it, however, didn’t become popular until the 2010s. In the past couple of years, Bitcoin had grown in popularity and value, so much that it’s not a legal tender acceptable around the world. The flexibility, universal, and resistance to manipulation have made Bitcoin a force to be reckoned with and a valuable asset.
Understanding Bitcoin and Altcoin Cryptocurrency IRA
Bitcoin or Alternative Cryptocurrency IRA is a self-directed investment account with many benefits. Crypto IRA is the process of using your individual retirement account to purchase and hold Bitcoin. The plan is for the Bitcoin to appreciate during the duration of your hold so you can profit from the difference when you start taking distribution in your retirement.
Just like in precious metals IRA, the Bitcoin will be in the possession of a custodian who will keep it secured and report to the IRS. A custodian holds the assets securely and provides reporting to the IRS, but you choose the investments.
Your custodian will make trades on your behalf and since it’s a self-directed IRA, you will direct your custodian on what coins to buy. Cryptocurrency IRAs are tax and you won’t pay capital gains taxes until you begin taking distribution benefits during retirement.
More Investment firms are beginning to offer cryptocurrency IRA services. To fully enjoy the potentials of Cryptocurrency, you will need the assistance of professionals who can analyze and make projections.
Cryptocurrency investment is one of the ways to diversify your portfolio and protect your wealth. If you plan to fully enjoy the benefits of Cryptocurrency, you will need to adopt a long-term plan.
The Upside and Downside of Bitcoin IRA
Everything in investment has its upside and downside and Cryptocurrency isn’t an exception. The following are the benefits and the risks attached to investing in Bitcoin IRA.
The pros of Bitcoin IRA include:
- Bitcoin IRA is self-directed hence has tax-free growth.
- Cryptocurrency is resistant to manipulation. This makes it a secure investment.
- Just like Gold, Bitcoin has a limited supply. This makes it a valuable asset.
- Bitcoin IRA is a good way to hedge your assets against the volatility of the capital market.
The cons of Bitcoin IRA include:
- Bitcoin is a digital currency that’s not backed by any asset. Bitcoin IRA has no FDIC deposit insurance or SIPC protection. This makes it a risky investment.
- Bitcoin IRA requires the services of a custodian that can make projections and secure your asset. This usually carries a high cost.
- Digital currencies are not regulated by any Central Bank. This makes it a volatile Investment which market performance isn’t easily predictable most volatile investments
Top 5 Cryptocurrency IRA Investment Companies in the United States in 2021
2021 has been a huge year for Cryptocurrency. There are several firms currently offering Bitcoin IRA services. In compiling this list, a comparative analysis of the platforms was conducted.
The following factors were considered.
- Customer Reviews
Good customer satisfaction record player an important factor in the ranking of the companies.
There was a comparison of the different fee structures of different IRA Investment platforms.
- Best Services
This is an essential factor while compiling the list. IRA companies who offer Cryptocurrency that is suitable for IRAs and not all Cryptocurrency are suitable.
The companies with the most explanatory details of their services were considered. Companies with shady information and get-rich-quick schemes were taken off the list.
Best For First-Timers
Blockmint Technologies is the perfect Cryptocurrency IRA company for people who are just discovering Cryptocurrency. Blockmint will suggest the best performing cryptocurrencies and advice you on how to invest.
Blockmint is owned by Lear Capital, a company with over 20 years of experience in gold and precious metals investments. Blockmint partners with Equity Trust Company that serves as the custodian for the cryptocurrency accounts.
If you’re not experienced enough to conduct your Cryptocurrency transactions, you should opt for BlockMint. Blockmint will help conduct your trades and manage your account. This service attracts a charge of 15% for every purchase. This is different from other charges.
The other charges are 2.5% purchase fee and 1% sell fee. You’re required to pay an annual maintenance fee of $195. There’s also a 0.05% monthly storage fee which is paid to the custodian.
Blockmint company supports the most popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, and Ethereum Classic. They assist with any IRA or 401(k) rollovers to fund your account. All you need to do is sign up on their website and leave the rest to BlockMint.
Pros and Cons of Blockmint
- You will get professional assistance in selling, buying, and managing your portfolio.
- The cold storage will protect your assets from online compromise.
Cons of Blockmint
- The professional services come at a high cost and attract multiple fees.
- Blockmint requires a $10,000 minimum starting investment which makes it capital intensive.
Bitcoin IRA comes out as the top Cryptocurrency IRA company. Bitcoin IRA allows you to invest in the best cryptocurrencies, with ease of use, and outstanding services.
Bitcoin IRA offers a wide range of services that covers investments in Bitcoin including Not Bitcoin 401(k). It’s easy to sign up to Bitcoin IRA to open an account.
Bitcoin IRA offers Cryptocurrency Investment in Bitcoin, Litecoin, Ethereum, Zcash, Bitcoin Cash, and Stellar Lumens. They hold your assets in a secured digital wallet and they
To provide extra security, Bitcoin IRA uses BitGo Trust, the offline storage platform. You will also enjoy an insurance policy of up to $100 million as extra protection for your assets.
Pros and Cons of Bitcoin IRA
The upside of Bitcoin IRA include:
- Signing up, opening an account, and funding the account only take few minutes.
- They offer additional offline security in terms of cold storage and an insurance policy.
- You can conduct trade any time of the day. This allows you to stay on top of the latest developments and self-direct your account.
Cons of Bitcoin IRA
- The biggest downside of Bitcoin IRA is its somewhat unclear pricing. The website doesn’t clearly state the charges that apply to your account. Although there’s a $3,000 minimum deposit. There’s no maximum deposit.
Before opening an account, you might need to get in touch with the company to get a clearer picture of the charges.
- Bitcoin IRA supports a limited list of currencies which makes it restricting.
Securing your investment is one of the most important features when choosing a Crypto IRA company. BitIRA has one of the best cryptocurrencies wallet protection you can find in the market. Cryptocurrency wallets can be hacked or compromised, and If you’re looking for a secure Bitcoin IRA company, look no further than BitIRA.
This is a self-directed Cryptocurrency IRA provider that protected your account with top-grade online security tools. Your account is encrypted and undergoes multi-factor authentication that’s can’t be breached.
BitIRA uses cold storage and Insurance policies in securing your Cryptocurrency. BitIRA partners with Equity Trust Company and Preferred Trust Company in securing their customers’ accounts.
The offline cold storage means that your wallet can’t be hacked online and it can only be unlocked through the access codes in your possession. Your asset is also secured through Insurance. Every penny in your asset is protected from unforeseen circumstances.
BitIRA allows you to buy Ethereum, Ethereum Classic, Bitcoin, Bitcoin Sv, Litecoin, Zcash, and Stellar Lumens. It costs $50 to open an account after which you’re required to pay an annual maintenance fee of $195.
Pros and cons of BitIRA
The upsides of choosing BitIRA include:
- Your asset is protected through offline cold storage which keeps them safe from cybercriminals and online compromise.
- BitIRA has an insurance policy that protects every dollar in your account.
- You can buy and transact up to 8 cryptocurrencies.
Cons of BitIRA
- The biggest downside of BitIRA is the 0.05% storage fee that increases along with your balance. This discourages large balances as you will have to pay higher charges.
- The $195 annual fee and $50 account setup fee might not be attractive to some people because other Cryptocurrency IRA companies allow you to open an account for free.
Broad Financial gives you complete control over your account and allows you to buy and sell whenever you desire. There are special IRA option will give you checkbook control over your investments. Meaning you get to dictate what happens with your account.
When you sign up to Broad Financial, you will be given a checkbook with which you can purchase assets. Assets bought with the checkbook are listed under your IRA account. You can buy assets such as stocks, bonds, real estate, and other assets. This will help you diversify and grow your portfolio.
Setting up an account costs $1,295 and this gives you access to your new IRA LLC. You’re required to pay an annual maintenance fee of $300. Upon funding your account, you can proceed to invest in cryptocurrencies of your choice.
Broad Financial doesn’t offer custodial service. So when you purchase Cryptocurrency, you’re responsible for the storage. You will also bear the associated risks of owning it. Securing your Cryptocurrency wallet is entirely up to you.
Pros and Cons of Broad Financial
The upsides of Broad Financial include:
- You get to choose your cryptocurrency exchange or wallet provider.
- You can manage your investment and choose what happens with your account.
- You will pay a predictable annual flat maintenance fee.
Cons of Broad Financial
- The setup fee is expensive.
- You manage the security of your Cryptocurrency wallet and you will bear the accompanying risks.
Best For Large Balances
iTrustCapital offers both cryptocurrency and precious metals IRA. This will make it easier for you to move your money from one IRA account to another.
ItrustCapital supports Investment in Bitcoin, Litecoin, Ethereum, EOS, Bitcoin Cash, and many more. With ItrustCapital, you will enjoy clear and straightforward charges. You are required to pay a monthly subscription of $29.95 in maintaining your account. ItrustCapital also charges a 1% fee on all crypto trade. Their pricing is lesser and more friendly compared to other Cryptocurrency IRA companies.
ItrustCapital assets are secured by Coinbase Custody. They have also taken out an insurance policy worth $370 as a way of securing their assets. Their user-friendly pricing, transparent charges, and large Cryptocurrency Investment options make ItrustCapital a good cryptocurrency IRA firm.
The pros and cons of ItrustCapital
The upside of ItrustCapital include:
- Pocket-friendly and transparent $29.95 monthly fee charges.
- They charge a 1% fee on Cryptocurrency trades which is low compared to other firms.
- You will have twenty-four hours of access to your wallet. You can trade and buy anytime you desire.
The downsides of ItrustCapital are:
- The monthly maintenance fee might be expensive for those with small amounts.
- There’s a minimum balance of $2,500 and the $1,000 contribution minimum might not be very attractive.
Cryptocurrencies are beginning to become popular and it’s being embraced by many. Cryptocurrency can be a good way to diversify your assets and hedge them against the volatility of the capital market.
There are different Bitcoin IRA companies you can choose from. Before investing, you should consider your plans and choose the company that fits your needs.
However, remember that Cryptocurrency is a long-term investment. So to enjoy the best returns, you should adopt a long-term strategy that will allow your assets to appreciate over a period.
We’ve also published an article about Best 3 Gold IRA Companies in the US in 2021