Crypto IRA Platforms are the latest trend for people planning their retirements. Stay put to know the risks, benefits, and some top crypto/Bitcoin IRAs.
Retirement needs planning. Individual Retirement Accounts (IRAs) are the popular piece of this puzzle.
But as everywhere else, crypto has piqued the people's interest with its value skyrocketing over the years (or falling to ashes with just a tweet).
We at Geekflare aren't financial advisors. This article is centered on helping you in finding the best crypto IRAs but doesn't endorse any such practice.
However, the overall perception about cryptocurrencies remains positive driving people towards the crypto IRA.
But first, it's important to understand…
What are Crypto IRAs?
Crypto IRAs are self-directed IRAs (SDIRA) where you can buy and sell cryptocurrencies through an exchange based in the United States.
SDIRA follows the same protocols and taxation binding as any conventional IRA. Still, it would help to know that the IRS treats cryptocurrencies as property, just like stocks and bonds.
But whether these schemes enjoy the desired exponential gains or suffer unseen downfalls is left to anyone's guesswork.
Advantages and Disadvantages of Crypto IRAs
The primary benefit of crypto IRAs is the ability to invest in crypto for retirement, which isn't possible with ordinary IRAs. Moreover, this helps in portfolio diversification.
In addition to the volatility, the limited use of cryptocurrencies can be a major thumbs down. No matter the price surge (and fall), the crypto acceptance in day-to-day life is still negligible.
Additionally, the transaction fees can dent the overall investment. Besides, crypto IRAs aren't mainstream yet, further creating a monopoly.
Regardless, people are interested in crypto IRAs, and that's why you're here in the first place.
So check out these crypto IRAs platforms if you're dead set to go the crypto way.
Interestingly, this also covers the Coinbase transaction fees. And there is no account setup or annual fee, except for the account closure ($50) and wire transfer ($25).
Besides, there are practically no investment minimums ($10). However, you can't make non-crypto investments without needing a separate IRA.
Alto also supports rollover or transfer of existing traditional Roth, SEP, SIMPLE IRA, 401(k), and 403(b) plans into your crypto IRA.
Finally, Alto also features a free service to help set up or fund your Crypto IRA.
iTrustCapital gives you the additional freedom to invest in the gold and silver within its crypto IRA.
However, there is a $1000 account minimum, and there are just over 25 cryptocurrencies to choose from. Still, this has major crypto coins like BTC, LTC, ETH, SOL, XLM, BCH, etc.
You'll only pay a 1% transaction fee for crypto trading. But there are separate fees for trading in physical gold and silver. Moreover, one will be paying an additional $75 for converting traditional, Roth, or SEP IRA.
iTrustCapital keeps your holdings in institutional-grade custodians like Coinbase and Fireblocks. Although, you don't get to choose between the two.
Finally, this can be an optimal choice if you need to invest in precious metals and don't mind the minimum investment threshold.
BitcoinIRA features 60+ crypto assets, but what sets it apart is the 100% offline, cold storage.
It's slightly different from the platforms discussed so far.
First, there is no transaction fee but custodian, security, and one-time service fee, which depends on the investment amount and has to be inquired separately from the support executives.
However, earning interests (up to 6%) on crypto holdings makes this platform worth considering.
Like others, BitcoinIRA permits rolling over the existing IRAs or other retirement plans.
True to its name, Choice is amongst the most versatile CryptoIRA platforms you'll ever need.
They feature three types of accounts based on individual requirements:
- No Annual Fee Account
- Cold Storage (1% yearly fee)
- Self-Custodial ($500 set up, $10/month)
Notably, the 1% trading fee is additional and applies to all. Besides, there are no minimums, and you can switch between the options anytime. Likewise, you can merge all the retirement accounts into the one with Choice.
But the best part is the flexibility to invest in crypto, gold, ETFs, stocks, etc., with a single retirement account.
This is an ideal setting where you hold the private keys and aren't restricted to a minimum investment. In addition, you can invest in a diverse range of asset classes.
Conclusively, this gives you full checkbook control and is based on a flat fee that you need to inquire from their support.
From the stable of Lear Capital, BlockMint offers a premium cryptoIRA with a minimum investment of $10,000.
BlockMint supports transfers and rollovers from the existing IRAs and 401k-like retirement plans.
They charge a hefty 15% transaction fee but provide discounts on volume spend. In addition, the custodian (Equity Trust) levies a 2.5% fee on purchase and a 1.0% on selling transactions.
Adding in the list of fees, there is an annual $195 for account maintenance and 0.05% storage charges on the crypto IRA holdings.
Finally, this seems the priciest of the lot that you can keep for the last.
Additionally, there is no minimum holding.
However, TradeStation imposes service charges and account termination fees based on the investment amount.
100% cold crypto storage in decommissioned nuclear bunkers makes BitTrustIRA a perfect platform for anyone seeking more than the normally-promised military-grade security.
This cryptoIRA doesn't have any hard investment limits. But there is a one-time setup fee of $50 in addition to purchase (5%) and selling charges (1%).
Besides, one has to pay for extra services, including wire transfers, account termination, etc.
Talk about risky investments, and crypto tops the list. So do your due diligence before opting for any crypto IRA platform.
Even some of the platforms promoting no hidden fees can deceptively charge their customers. So go through the terms, customer reviews, and real-life feedback from your peers for the best experience.
PS: Check out our curated list of crypto tax software to avoid mishandling your tax calculations.
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