Bitcoin IRA Review 2022: A Complete Breakdown Comparison

Using the self-directed trading platform Bitcoin IRA, you may purchase and sell bitcoins inside a tax-advantaged individual retirement plan (IRA). The platform offers gold investing in addition to assisting you in converting existing retirement funds into a cryptocurrency IRA.

Tax savings are possible. However, there are high account costs. Read our review to learn if it’s worthwhile to use a Bitcoin IRA to save for retirement.

Bitcoin IRA Review

Various businesses offer solutions for trading cryptocurrency in an Bitcoin IRA. However, transferring money from an existing IRA to a crypto IRA can be time-consuming and difficult.

And if done incorrectly, it might potentially result in a taxable event. In other words, the money you believed would stay tax-sheltered becomes subject to taxation throughout the conversion.

Bitcoin IRA has developed a less complex workaround for these issues. Customers only need to start an IRA transfer and open an account with Bitcoin IRA. 

Bitcoin IRA, from that point on, will handle the rest. Customers can start trading cryptocurrencies in their IRA after the procedure is finished. Let’s examine its operation.

Bitcoin IRS Highlights

Company NameBitcoin IRA
Minimum DepositsIRA transferred: $3000
Savings IRA: $100 (requires recurring contribution)
Supported CurrenciesMore than 60
Charges5.99% of the initial deposit as a setup fee
2% trading fee
0.08% account fee (Billed Monthly)
PromotionsNone

What Is Bitcoin IRA?

An IRA platform that allows you to invest in cryptocurrencies is called Bitcoin IRA.  The first custodian to provide cryptocurrency IRAs was Bitcoin IRA, a Los Angeles-based company, back in 2016. Members can finance their retirement accounts by investing in various cryptocurrencies, not simply Bitcoin.

Bitcoin IRA

Their user-friendly trading platform is accessible via their mobile app or website. After funding your account, you can start immediately and in as little as 3 to 5 days.

Under the trade name BitcoinIRA, Alternative IRA Services (“AIS”) conducts business. The world’s first, most prominent, and safest bitcoin IRA platform is what Bitcoin IRA calls itself.

Over 100,000 people have accounts with it. The Sherman Oaks, California-based Bitcoin IRA was established in March 2015. Camilo Concha founded it and served as its CEO.

What Bitcoin IRA Offer?

There is a platform called Bitcoin IRA for trading bitcoins from your IRA. As a full-service provider of self-directed IRAs, the business stands out from the numerous others that provide comparable services but call for putting various pieces together.

The following services are offered to consumers by Bitcoin IRA:

  • Transferring a current IRA to a Bitcoin IRA
  • 24/7 trading of cryptocurrencies
  • Custody
  • Reporting: Financial and performance statements

Roth, SEP, and Traditional IRAs are among the accounts that qualified. If a 401(k) contribution, it may be used. You must be older than 59.5 years old or have left the employer who sponsors the 401(k) for it to be rolled over into an IRA to use a 401(k), though. Pensions and annuities are also options.

A basic account must be opened for a minimum of $3,000. When we initially examined it, fewer than 10 coins could be traded on Bitcoin IRA’s platform. However, we are happy to note that the organization has steadily increased its asset list over time and now offers over 60 coins, including well-known alternative currencies like Cardano (ADA), Dogecoin (DOGE), Solana (SOL), and Polkadot (DOT).

Which Cryptocurrencies Do Bitcoin IRA Support?

Despite its name, Bitcoin IRA provides more than just bitcoin. Users can finance their retirement accounts by investing in a variety of cryptocurrencies. The current list of 60+ coins that Bitcoin IRA offers for IRA investments include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (LTC)
  • Stellar Lumens (XLM)
  • Zcash (ZEC)
  • Dogecoin (DOGE)
  • Chainlink (LINK)
  • Shiba Inu (SHIB)
  • Bitcoin Cash (BCH)
  • Ethereum Classic (ETC)

Since its inception, Bitcoin IRA has advanced significantly. There were initially only a few of the most well-liked coins. Many of the more cutting-edge cryptocurrencies are now available. We expect it to keep growing its selection.

Create a new IRA saver

With Bitcoin IRA, you can also open a brand-new IRA. They recently introduced a brand-new product called the Saver IRA, which may be opened with as little as a $100 initial contribution.

You must link a savings or checking account and establish recurring contributions of at least $100 to open one of these accounts. Your automated monthly investments will be made in the chosen coins.

Mobile Crypto Buying and Selling

Recently, Apple and Android device owners can download the mobile software from Bitcoin IRA. According to Bitcoin IRA, the first app in the world that enables users to trade cryptocurrency inside a self-directed retirement plan.

Additionally, you can use the app to view sophisticated charts, create personalized price alerts, and more.

Bitcoin IRA mobile

Should You Create An LLC?

Unlike other businesses that offer bitcoin IRAs, you do not need to set up an LLC to house a self-directed IRA with Bitcoin IRA. It is a complete turnkey solution that takes care of everything.

The self-directed IRA option is more time- and money-consuming. In contrast, opening a Bitcoin IRA account only takes a few minutes, and its costs are lower than those of a self-directed IRA.

Bitcoin IRA Full Review

Investors who wish to include cryptocurrencies in their retirement plans while gaining the tax advantages of an IRA should consider this cryptocurrency IRA.

Pros

  • Investing in cryptocurrencies tax-free
  • Invest in gold
  • Rollover of a full-service IRA
  • Numerous cryptocurrencies available
  • The US regulated
  • Educational resources

Cons

  • Costly fees
  • Intransparent fee structures
  • There are no cryptocurrency deposits.
Bitcoin IRAALTORocketDollar
Ratings4/53.5/54/5
Types Of AccountIRAsIRAsIRAs or Solo 401ks
Set up Fee5.99% of deposit$0$360 to $600
Account Fee0.08% (billed monthly)$10 to $25/mo$15 to $30/mo

Investment optionsCrypto and GoldRobustRobust

Top Benefits

Bitcoin IRA offers tax advantages over purchasing cryptocurrency through a broker or cryptocurrency exchange because it is a self-directed IRA. Your contributions are tax-deductible in the year you make them, just like any traditional IRA. Only when you withdraw money will you have to pay taxes.

Remember that to save money on taxes; you must sacrifice some flexibility. A withdrawal made before 59.5 from an IRA will pay early withdrawal fees and be taxed as income. This is because an IRA is a retirement account.

Investment In Gold

You can purchase gold in addition to digital currency through a Bitcoin IRA. Except for buying ownership rights to actual gold bars, the fees and purchasing procedure are the same as with cryptocurrencies.

This is among the quicker and simpler methods for buying gold, especially considering that you won’t have to spend the high storage costs that other gold brokers do. Bitcoin IRA keeps Gold in Brink’s bullion vaults, which are also insured.

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What could be done better?

High Fees

In addition to 2% trade fees, Bitcoin IRA charges a setup fee on your initial deposit. Although these costs are typical for crypto IRA accounts, they are much more than what you could encounter on crypto exchanges. Most exchanges only charge 0.5% or less transaction costs for every trade, and they typically don’t charge a setup fee.

Cost transparency is missing

The costs charged by Bitcoin IRA are not disclosed upfront. Instead, it urges you to contact a representative by phone. You can also utilize Bitcoin IRA’s chat feature or email service to inquire about costs.

It irritates me that you must go through so many hurdles to determine how much Bitcoin IRA costs. There is no justification for not providing this information, as many other cryptocurrency platforms publicly make their costs available.

No crypto asset deposits

You cannot transfer cryptocurrencies into an IRA due to IRS rules. You can only fund it with U.S. dollars, even if it’s a crypto IRA. This rule doesn’t just apply to Bitcoin IRAs; it also applies to any retirement account based on cryptocurrencies.

How Bitcoin IRA Works?

how bitcoin IRA works

As the name suggests, Bitcoin IRA is a self-directed retirement account that enables cryptocurrency investments. Gold is also offered.

A new Bitcoin IRA account requires a $3,000 initial commitment. You have two funding options: a cash contribution or a rollover from your current IRA, 401(k), or 403(b) funds. But due to IRS rules, you cannot finance your account with cryptocurrency assets. Every contribution to the Bitcoin IRA must be made in US dollars.

When you transfer money from a retirement account, Bitcoin IRA will carry out the transfer in three to five business days. You can start trading on the site as soon as your account is funded.

You are not liable for capital gains or dividend taxes because the money stays in your platform account, and any contributions you make to the account are tax-deductible.

Your early withdrawal will result in tax penalties because your possessions are in a retirement account. If you take money out of the report before you turn 59 ½, you’ll have to pay income tax and an early withdrawal penalty (about 10%). Your money can always be sold and reinvested in a separate IRA.

Review of fees

With Bitcoin IRA, exact fee amounts are not immediately available. According to the statement, there is a modest custodian and service cost in addition to an initial one-time service fee based on your investment amount. It advises potential customers to contact a representative for more details.

When we contacted Bitcoin IRA for a price estimate, a representative gave us the cost schedule below:

  • 3.99% of the initial deposit is taken as the setup fee.
  • Trade transaction costs are 2%.
  • Maintenance charge: 0.0008% of the entire account value per month ($20 minimum per month)

By selecting “Open Account” on this page, you can join Bitcoin IRA and get fee amounts. As an alternative, you can reach Bitcoin IRA by way of:

  • Contact information: 866-374-1530
  • Email: support@bitcoinira.com

Why Do Trade With Bitcoin IRA?

Gains from bitcoin cash trading are taxed the same as profits from trading stocks. The growth is short-term and subject to ordinary income tax if the store is kept for a year or less. The gain is long-term if held for more than a year and is taxed at a significantly lower rate of 0%, 15%, or 20%, depending on your income.

Profits are either tax-free or tax-deferred, so you don’t have to worry about taxes when you trade in an IRA. Contributions to a Traditional IRA are tax-free, and gains are taxed afterward. Contributions from earned income to a Roth IRA have already been taxed. Payments on a roth ira are not taxed.

Because most cryptocurrencies are volatile, they are frequently held for less than a year, leading to increased short-term gains; trading in an IRA shields those capital gains from taxes.

Comparison With Competitors

The two major competitors of Bitcoin IRA are Alto and Rocket Dollar. While Bitcoin IRA now only allows cryptocurrency and gold, both firms will let you invest in just about anything inside your self-directed retirement account.

Bitcoin IRA’s AUM-based charge (0.08%) for smaller accounts should be comparable to Rocket Dollar’s and Alto’s flat monthly fees (which range from $10 to $30). However, your monthly charge with a Bitcoin IRA will increase as your account grows.

With a direct link with Coinbase, Alto is an excellent option for Bitcoin IRA if investing in cryptocurrencies is your main objective. However, it should be emphasized that only Rocket Dollar, out of these three businesses, will currently permit you to participate in a self-directed Solo 401(k) (k).

How To Open an Account?

To create an account, go to the Bitcoin IRA website. According to Bitcoin IRA, the procedure includes the following steps and takes less than three minutes:

  • Create a Bitcoin IRA account.
  • Transfer IRA money
  • Start trading cryptocurrencies.

Bitcoin IRA Characterstics

Although the product selection of Bitcoin IRA is somewhat limited, it is still worth investigating. To determine whether Bitcoin IRA meets your investing goals, look through its key characteristics below.

Saving Investment Accounts 

The crypto IRA accounts and crypto 401(k)s that Bitcoin IRA provides its significant products. These accounts offer nine well-known cryptocurrencies with tax-advantaged investment alternatives.

Account categories consist of:

  • Bitcoin IRA
  • Bitcoin Roth IRA
  • Bitcoin 401(k)
  • Savings IRA

Using a linked bank account, their Saver IRA requires a minimum investment of $3,000, or $100 per month. (digital assets)  There is no limit on investment.  Users of the Bitcoin IRA can also exchange actual, physical gold. You will provide absolute ownership rights to investment-grade, US-certified gold bars.

Bitcoin roth ira

Bitcoin IRA Charges

The main charges for Bitcoin IRA are:

  • 5.99% for setup (of your investment amount)
  • Monthly charge of 0.08%
  • Trading cost of 2%
  • $3,00 minimum down payment

However, each client may have different specific fees.  You need to call Bitcoin IRA and chat with one of their staff to see exactly what their costs would be for your scenario.

Bitcoin IRA Security

You want to be sure that your custodian is concerned about the security of your funds when it comes to your retirement savings, which are valid for both cash and cryptocurrencies. Here are a few security measures Bitcoin IRA has implemented to safeguard your investments.

  • Insurance: BitGo Trust offers up to $700 million in coverage for digital assets.
  • Coins are kept in a cold storage facility offline.
  • 256-bit SSL encryption for encryption
  • Gold is insured at Brink’s bullion vault facility and while it is being transported.

Alternatives to think about

  • Coinbase: Coinbase is one of the most well-known cryptocurrency exchanges in the globe if you want to reduce expenses on fees. It is far more reasonable than Bitcoin IRA because of its minimal costs and advanced trade option. A feature-rich platform with educational information and interest-earning opportunities is also available on this exchange.
  • Robinhood: If you’re looking for a more adaptable investment platform, you can maintain your stocks, ETFs, and cryptocurrency in one location with Robinhood. The most advantageous feature of the well-known stock trading app and investing platform is that it offers commission-free trading.

Is Bitcoin IRA safe for your cryptocurrency?

Bitcoin IRA is a secure platform for purchasing, selling, and storing cryptocurrency. The platform prioritizes security and has several safeguards to protect client funds.

The Bitcoin IRA web app is encrypted with 256-bit SSL certification. BitGo Trust stores digital assets, a service provided by Bitcoin IRA’s custodian. BitGo is the largest on-chain Bitcoin transaction processor, with over $2 billion in assets.

All Bitcoin IRA cryptocurrency investments are kept offline in cold storage. Because it is not connected to the internet, this crypto ira storage is the preferred method for maximum security. BitGo Trust also has custodial asset insurance for up to $700 million. Lloyd’s of London provides insurance.

Is it Worth?

Yes, Bitcoin IRA might be what you’re looking for if you want to trade cryptocurrencies in your IRA, want someone to set up the account for you, and are okay with the costs. They simplify the process, are incredibly secure, and offer phone help.

However, a self-directed IRA provider like Alto or Rocket Dollar will be a better option if you want to use your IRA to invest in more alternative assets than only cryptocurrency.

Frequently Asked Questions

How much does Bitcoin IRA charge?

Bitcoin IRA

To earn interest, each coin must be valued at $10,000 or more. Investors should be warned that, compared to the other options on our list, the Bitcoin IRA has higher transaction and continuing account fees. The setup charge for the account is 5.99%, and the trading fee is 2%.

Should you start investing in Bitcoin IRA?

Bitcoin IRA mobile

For those who desire to avoid capital gains taxes while accumulating wealth, bitcoin IRAs can be a tempting investment choice. Regular cryptocurrency trades would be liable to capital gains taxes if you didn’t have an IRA. However, self-directed IRAs do away with those extra expenses (or at least defer them).

How does a bitcoin IRA work?

how bitcoin IRA works

A Bitcoin IRA functions similarly to a regular IRA, except that you invest your money in cryptocurrencies rather than mutual fund shares. Traditional and Roth self-directed IRAs are available to you, and you can take advantage of the related tax benefits.

What IRA is best for cryptocurrency?

Bitcoin IRA mobile

Due to its simple account creation, 24/7 real-time trading, and cutting-edge security features, Bitcoin IRA, the first and largest cryptocurrency IRA provider, earns the top rank as the best overall.

Does FDIC insure Bitcoin IRA?

Bitcoin IRA

The FDIC and SIPC do not provide coverage for cryptocurrency. Most digital asset-focused IRA providers offer high-value insurance to protect coins in the unlikely case of a breach.

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