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Best Bitcoin IRAs – How to Invest in a Bitcoin IRA this Week

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Author: John Ladeluca

Saving for retirement naturally prompts many of us to want the best, most profitable opportunities to keep our money. With our own retirement portfolios, we naturally want the highest yielding options. 2017 yielded immense returns for those who learned how to buy cryptocurrency, but what about legacy investors that don’t how to maneuver cryptocurrencies? Legacy financial products are finally meeting up and combining with newer ages of the internet; as such, things like Bitcoin IRAs are not only possible but now fully functional, and we’ll help in overviewing the best options available.

Now, for the first time, people can deposit funds to a Bitcoin/Cryptocurrency IRA; but which ones are the best, the safest, and most cost efficient? We’ll go over exactly this in this guide.

This guide will overview the best Bitcoin IRAs, reviewing each of them individually and assessing whether or not a Bitcoin IRA is, in general, the right choice for you.

What is a Bitcoin IRA?

Bitcoin and cryptocurrency as a whole have made a dent in the financial markets. There are a lot of investors that want to get involved in Bitcoin, but either 1.) Do not have the available savings to do so as most of it is in retirement, or 2.) Do not know how to. There is an influx of potential investors, however, the vehicles available are not widely common; that was until retirement account providers began launching Bitcoin and cryptocurrency based IRAs.

What is an IRA?

First, it’s important to understand what an IRA is if you don’t already (If you do, skip this part). An IRA is an individual retirement account. IRAs are accounts that are held to store savings for retirement. Capital is stored for long-term preservation in these accounts so that when the owner of the IRA decides to retire, he has a large store of capital to withdraw and spend on whatever he chooses.

IRAs are essentially accounts filled with an individual’s retirement savings where either an advisor or the person themselves buys assets and what not within the financial markets in attempts to ride upward market momentum and make consistent, manageable profit for the account in the long-term timespan. The overall goal is that by the time the individual retires, their account has grown profitably and extensively, giving them even more money to spend while retired. IRAs can also be what is called self-directed. In this instance, the IRA account is controlled and directed by the owner of it (The person saving up for retirement) – and not a financial advisor or manager.

Bitcoin As An IRA

What if you wanted to place your retirement savings in other assets and diversify, say with cryptocurrencies? Now, you’re able to, as a plethora of different reputable financial providers has now established Bitcoin and cryptocurrency IRAs. These Bitcoin IRAs are as we previously mentioned, self-directed. They are standard IRAs, however, they are essentially guided by the provider. The provider of the Bitcoin IRA will usually assist in the purchasing and selling of cryptocurrencies at a certain fee. Simultaneously, the owner of the IRA will function within the limitations of standard IRAs (Including fees, minimums, and withdrawal penalties).

In essence, Bitcoin IRAs enable you to place your retirement savings in alternative assets which include Bitcoin, and dependent on the provider, other cryptocurrencies including Ethereum, Litecoin, and more.

How to Choose a Bitcoin IRA

Things to Look For:

Find a good track record or reputability:  When choosing the Bitcoin IRA of your choice, you really want to assess how real, focused, and trustworthy with your retirement account they are. There are some Bitcoin IRA options that have ended up as illegitimate, resulting in lost funds due to improper management. Talk with your prospective IRA provider; if they’ve been running a Bitcoin IRA for multiple years then this is a relative benefactor.

Additionally, try to locate the best, low Fees: IRAs typically do not incur immense fees, however, in the case of Bitcoin and other cryptocurrency IRAs being a new product class, providers might feel they’re inclined to charge higher fees; which is fine, however, always ensure you compare between the prospective options you’re looking for. These types of fees will vary per product and investment amount. Also, since Bitcoin IRAs are new concepts, you might even be able to negotiate fees.

Favorable lock-up periods are essential for choosing your IRA: Bitcoin and cryptocurrency IRAs are nonetheless, IRAs; as such, you’ll have to put them on lock-up periods with additional fees that are imposed if you liquidate, withdraw, or freeze any of your account funds. As a result, ensure that you understand exactly what the parameters for your lock-up period and any additional fees imposed; compare exchanges based on this and you’ll have an eye-opening experience in seeing how far some lock-ups are from other providers.

Finding a provider with consistently reputable and helpful assistance & team is very necessary: Bitcoin and cryptocurrency are complex technologies; look for a team who clearly understands what they are doing in regards to research, process, and so on. A proper Bitcoin IRA provider should be an expert in the field and should additionally be quick to help you out with any potential errors or problems you might have in regards to your Bitcoin IRA.

Analyze Investment Minimums: Unfortunately, the barriers to entry for Bitcoin IRAs are a bit steep at the moment, so as a result, investment minimums imposed by IRA providers can be relatively large. However, if you do enough due diligence, you’ll be able to quickly determine which investment minimums are unreasonably too big.

 

Factors to Avoid:

First and foremost, avoid illegitimacy/scams: Cryptocurrencies like Bitcoin are new entirely digital forms of technology, and as a result, a new breed of scammers was then birthed; it is, in fact, possible for someone to fake a Bitcoin IRA account. It’s extremely important you avoid any potential Bitcoin IRA scam or phishing sites, as these platforms will simply steal your funds. Ask for the official registrations of the IRA provider, their entity formations, and the official subscription documents (Where you will send funds). Never give funds online directly to a Bitcoin IRA.

Look generally for a product’s overall willingness to add limitation in your ability: It is very possible for some, of course not all, Bitcoin IRA providers to try to trap you into an IRA contract. Try to get as much flexibility within your IRA. This goes for lock-up periods, withdrawal fees, imposed fees, and more; if a provider is looking to provide you extremely unfavorable terms and using excuses such as ‘new markets’ as the reasoning, you should reassess whether or not this provider is right for you.

Lack of communication in a provider should be a warning sign: Bitcoin IRA providers are there to be the bridge for the legacy generation investors interested in making investments in new digital markets. As a result, it’s essentially their responsibility to facilitate any errors, worries, or trouble that an investor might run in to. If a provider is unwilling to help in these regards, this is a warning flag. Additionally, the IRA provider is in control of your funds, so don’t feel like you’re bothering them, they’re getting paid for that.

Additionally, keep an eye out for unjustifiable fees: Some Bitcoin and cryptocurrency IRA providers will charge relatively higher fees for their IRA services; this is usually for a reason, however, there can be providers in some instances, just as is the case in the legacy IRA environment, that charge these higher fees for no real intrinsic reason. For example, if an IRA provider offers exposure to assets that other IRA providers do not in any way, then the fees are somewhat justifiable. However, if an IRA provider is imposing high fees for no real reason other than that ‘Market Status’, etc, then they are most likely not the best option.

Lastly, at all costs, avoid products with promises in return: While this most likely will not occur with any legitimate financial institution offering Bitcoin IRAs, it is definitely possible and should be mentioned; any Bitcoin or cryptocurrency IRA that guarantees a return should be avoided. These are traditionally scams or Ponzi schemes. As a result, proceed with caution.

Best Bitcoin IRAs for 2019

Next, we’ll take a look at some of the best, reviewed Bitcoin and cryptocurrency IRA options. Keep in mind, new products, details, and options for crypto IRA accounts are continuously evolving, so it’s important to also combine these rankings with your own respective due diligence and research to find the best option that is fit for you personally.

1. BlockMint

As choosing a Bitcoin IRA is no easy task that should be overlooked or decided quickly, with thorough research and due diligence, our personal number 1 rank as the best Bitcoin IRA, is BlockMint. While the actual company of BlockMint is rather new, it is operating as the crypto-section of the IRA provider ‘Lear Capital’, who’s managed a reported $2+ Billion. This gives us a level of confidence in believing in BlockMint’s IRA as opposed to competitors who have demonstrated no prior experience with IRA’s. In the case of an IRA, it needs to be noted that these are legacy financial systems; this means if you can find a provider who offers standard IRA options and is a seasoned veteran within the market, demonstrating clear focus and success, then they will usually be the optimal option.

BlockMint’s IRA option enables investors and legacy participants of traditional investment vehicles to diversify and explore additional third party options instead of normalized equity-related retirement accounts. BlockMint is taking the initiative with their Bitcoin IRA product by also assisting new prospective clients looking to engage in the BlockMint IRA by explaining what cryptocurrency-related products are as well as facilitating the investment process.

Bitcoin is a complex technology that many people stay away from because  they believe it to be too difficult to learn how to buy. BlockMint is providing a solution for this, and providing not just Bitcoin as an IRA product, but also other cryptocurrencies such as Litecoin and Ethereum.

BlockMint requires a minimum investment of $20,000.

Pros:

  • A branch from ‘Lear Capital’, a legacy finance IRA provider that has managed over $2+ Billion. BlockMint is run by a company that has prior experience in retirement investment accounts.
  • Major option is the Bitcoin IRA, however, they do not limit the assets available within their overall cryptocurrency IRA; you can engage in Ethereum and Litecoin products as well.
  • Maintains one of the more lower fee-structures within the IRA-crypto atmosphere.
  • Assistance with all processes on the IRA; the BlockMint team will guide you through the entire transaction process, will assist you with any questions or issues you might have.
  • Room for growth as BlockMint is new, however, Lear Capital is not.

Cons:

  • Lock-up period is relatively longer
  • While they’re a branch of Lear Capital, a legacy IRA  provider, as a cryptocurrency IRA provider, they are brand new in the market.

2. Broad Financial’s Bitcoin IRA

Broad Financial is one of the most versatile, and advantageous options for those who are looking to get involved with a Bitcoin IRA. Broad Financial is truly revolutionizing the legacy financial atmosphere in its ability to offer as flexible of a financial product as their Bitcoin IRA.

To get started, Broad Financial is a self-directed IRA provider that offers alternative motions for those who are looking to accumulate retirement savings. Moving on from this, Broad Financial has more recently enabled their inclusive Bitcoin IRA which is a more customizable and highly efficient retirement portfolio plan. While many IRA providers are in competition to see the best flexibility in fees, Broad Financial maintains a strictly flat-fee as opposed to other asset-based fees, which helps you save the most.

Additionally, Broad Financial’s Bitcoin IRA product is much more than just a Bitcoin IRA; you have an infinite amount of assets and cryptocurrencies that you’re allowed to choose from. This also, as stated on their website, includes the “…exchanges, technology, and transaction amount.” While Broad Financial houses the complicated back end and the physical IRA, you have physical ownership and customization input on everything else. 

The final benefactor that seems to place Broad Financial ahead of the rest of the competition? There is no investment minimum for their Bitcoin IRA.

Pros:

  • Literally unlimited amount of supported cryptocurrencies and supported assets; you get to choose, and implement it all internally in the Broad Financial Bitcoin IRA.
  • Flat fees only. There is no shifting or unknown fees, all fees are determined and established beforehand, which is in comparison to other exchanges that have not been able to do such.
  • No minimum investment amount to get started.
  • Broad Financial houses the complicated IRA back-end and you get to customize and handle all of the exchanges, transactions, and all else that you want to.

Cons:

  • No designated assistants or advisors in placement of purchases or investments in the cryptos at hand.

3. Regal Assets Bitcoin IRA

Regal Assets is a long-term retirement account provider for those wishing to invest in precious metals and diversify their individual accounts; more recently, they have enabled the option to open IRAs for cryptocurrencies of your choice. Now, while most other institutions enable retirement portfolios that are placed upon a certain strict amount of parameters, Regal Assets is changing the game in enabling investors to open cryptocurrency IRAs for any asset of their choosing.

Regal Assets has demonstrated a clear initiative in bringing mainstream crypto IRAs to the forefront, and their products are seemingly customizable dependent on the individual opening the retirement account. Additionally, Regal Assets new option for crypto retirement portfolios has enabled various options, including individual Ripple, Ethereum, or Bitcoin IRAs; it is entirely up to the user.

Portfolio Packages

Regal Assets enables what are called ‘Portfolio Packages’, which are relative to minimum investments in the IRAs. They are as follows:

Legacy Portfolio: $25,000 minimum investment required.

Kingship Portfolio: $50,000 minimum investment required.

Dynasty Portfolio: $100,000 minimum investment is required.

The Coronation Portfolio: $250,000 minimum investment is required.

Additionally, Regal Assets’ crypto IRA features 24/7 support in the case of any trouble or turmoil in your investment or transfers. Regal Assets was also the first company that successfully acquired the crypto commodity trading license. The crypto IRA that Regal provides is also stored in a unique protocol where your investments are never pooled together or grouped together with other investors or contributors.

Pros:

  • A virtually infinite amount of supported cryptocurrencies/assets that can be contributed to the retirement portfolio.
  • One of the first companies to start a legitimate registered Cryptocurrency IRA program, very solid and reputable track record.
  • Various portfolio types and options
  • Contributions and investments made into your crypto retirement account are never included in someone elses pool of assets. Each account is entirely separate from the other.

 

Cons:

  • Relatively high minimums,  especially for those looking to get started quickly
  • Fees associated can be somewhat higher in comparison, however, it does come at the cost of holding any cryptocurrency.

4. BitcoinIRA

BitcoinIRA is one of the more mainstream options in terms of cryptocurrency and Bitcoin IRAs. Not only does BitcoinIRA offer the standard IRA structures, but you can also create and establish IRA accounts that can invest in Bitcoin, Ripple, Ethereum, and more. BitcoinIRA inclusively offers a plethora of different assets to engage in and get started with as far as your retirement portfolio goes. BitcoinIRA additionally offers the ability to set up a Roth IRA via their platform, which is an exclusive feature that not many other IRA providers have been able to do.

As far as interface and usability go, BitcoinIRA is one of the top choices. The platform offers an intuitive design that allows you to check in real-time the performance of any of your assets or potential investments without missing a beat. Everything is located upon your user interface.

BitcoinIRA is also one of the more faster options as far as getting set up. As long as you have the proper documentation needed, you can get started with the platform nearly instantly. BitcoinIRA offers a large number of different assets and products to choose from and can be one of the better options if your preference is to be engaged in a platform where the usability and interface are held above other factors. BitcoinIRA is also competitive when it comes to fees. The platform charges a one-time service charge upon each entirety investment that you make.

You can also read other questions about their platform here. 

Pros:

  • Variety of investment products, including portfolio for Ripple, Ethereum, and Bitcoin
  • Signing up is very quick and easy, it is guided as well and if you run into trouble you can consult with the BitcoinIRA team who is readily available.
  • User interface is very sleek, one of the better IRA options if you’re looking for an attractive interface. Graphing and charting is also subsequently supported.
  • Comparably low fees

Cons:

  • Reliant upon your decisions mainly, not necessarily guided in comparison to other platforms
  • Enables only investments for their supported products

5. Coin IRA

Coin IRA is one of the better options for those who are absolute beginners to cryptocurrency and Bitcoin. Coin IRA is a BBB accredited Bitcoin business and offers absolute beginners the ability to incorporate Bitcoin into their IRA.

Coin IRA is one of the few options that is fully licensed and regulated for buying and selling Bitcoin as well as other cryptocurrencies. Coin IRA, while not a direct IRA itself, is a subsidiary of the company ‘Goldco’. Coin IRA serves as one of the best options as far as legislation and regulation goes that emphasizes incorporation of Bitcoin into your IRA. Coin IRA has a dedicated support team and customer service team that is highly dedicated to assisting.

Coin IRA also has a variety of different physical office spaces, and has verified as a legitimate business. The provider serves currently only Bitcoin products, however, this is definitely possible to change within the near future. Coin IRA is straight forward to get started with and registering for an account doesn’t require much time; for beginners, Coin IRA is one of the better options unndoubtedly. Coin IRA also maintains a minimum investment amount of $30,000, however, there is no maximum amount which is a large benefactor.

Pros:

  • Very easy to get started with, easy to use interface, a basic solution for those who are absolute beginners with cryptocurrency/Bitcoin yet want to get involved.
  • Fully registered, regulated, and maintains licensing on a level that many other IRA providers have not yet achieved. Additionally an accredited BBB business.
  • Provides you a guide when getting started with their platform
  • Reputation as having one of the best cryptocurrency IRA support and assistance teams on the market. Also has physical office locations available.

Cons:

  • Only one product offering, which is the main Bitcoin IRA.
  • Minimum deposit amount of $30,000, as opposed to much smaller amounts on other IRA providers.
  • Fairly limited in functionality and what it can do.

 

Bitcoin IRAs Ranked by Category

Currently, the statistically most cost-efficient Bitcoin IRA is Broad Financial’s product due to their fixed flat fee structure. Other IRA products will traditionally incur ‘moving’ fees that are dependent on how well your investment is doing (Better you do, more you have to give up).

Broad Financial offers a structure that will essentially be flat no matter how well you’re doing. This protects you losing more money based on making more money.

Bitcoin IRAs are very heavily reliant upon their reputation; otherwise, how can we trust them to hold our retirement funds?

In first place, as far as reputation goes, BlockMint takes the crown for more reputable provider; this is because it is a branch from the legacy IRA provider ‘Lear Capital’ –> Lear Capital has managed over $2+ Billion in retirement accounts, which gives it a track record that other cryptocurrency IRAs can only envy at this point.

Regal Assets Bitcoin IRA takes second place in terms of reputation due to the fact that the provider is a multi-year provider of retirement portfolios for alternative assets including precious metals. Regal was also the first provider to acquire the crypto commodity trading license.

Coin IRA is also a good option. The provider is an accredited BBB business officially under the ‘Bitcoin’ name, which makes it one of the first of its kind. Coin IRA is also fully registered and licensed as an IRA provider.

Coin IRA is easily the best option for those who are absolute beginners in the cryptocurrency and Bitcoin IRA ecosystem. Coin IRA offers one static IRA product however offers some in-depth support for those just getting started. Additionally, creating an account is extremely fast on Coin IRA. 

Broad Financial’s Bitcoin IRA is the most advanced option when it comes to Bitcoin IRAs; this is mainly because the platform handles all of the IRA back-ends, however, lets you choose and have complete control & customization over what you invest in, what you trade, and so on as far as cryptocurrency and Bitcoin goes.

The best option for Bitcoin IRAs as far as interface and overall platform design and development is BitcoinIRA. BitcoinIRA has clearly spent a dedicated amount of time towards crafting a beautiful interface and is subsequently the best option as far as fluidity, platform, and interface.

Differences Between Assisted Bitcoin IRAs and Strict Self-Directed Bitcoin IRAs

There are traditionally two types of users who are getting involved in Bitcoin IRAs: Those who know what they are doing and those who probably do not know what they are doing as far as cryptocurrency and blockchain go. Within the atmosphere of Bitcoin and cryptocurrency IRAs, thankfully there have been major developments that have been made which include having designated ‘assisted’ movement. What this means essentially is that there are Bitcoin IRAs where you have designated ‘specialists’ that will advise you and help make your investments and purchases/sales at the cost of a fee (Most commonly around 15%), and then there are strict self-directed Bitcoin IRAs. These are Bitcoin IRAs where you are more left on your own to make the investment, trading, and sale decisions by yourself.

Which one is better?

Determining which one is better is subjective:

  • Are you an absolute beginner when it comes to buying and selling cryptocurrencies and could potentially lose all your money due to your inability to accurately buy and sell cryptocurrency? Then it’s definitely worth it to sacrifice the specialist fee and go that route.
  • Are you adversely someone who has been using and involved with cryptocurrency since 2011 and work a job that is unrelated to cryptocurrency but wants to allocate a portion of your retirement to something you are passionate about and believe can potentially yield much higher profits than if you were to just trade the stock market? Then a strict self-directed route might be best.

Difference Between Singular Crypto IRA and Multi-Crypto IRA

Cryptocurrency IRAs come in 2 main forms, and these can be confusing at first especially for beginners who are still learning how to buy cryptocurrency. There are singular crypto IRAs and multi-crypto IRAs

Singular (Static) IRAs:

  • These are IRAs that offer a singular concentrated investment in one main cryptocurrency or digital asset (Traditionally Bitcoin or Ethereum). These concentrate on long-term growth through one asset that has shown lower amounts of volatility.
  • These are considered to be lower-risk assets and more predictable in terms of return.
  • Offer limited room for growth

Multi Crypto Currency IRAs:

  • Offer investments and exposure to multiple cryptocurrencies, some of which are considered to be more higher risk but subsequently have higher rooms for growth available.
  • These will typically be IRAs specified to multiple lower-capped cryptocurrencies that have higher overhead potential.
  • Employed in efforts to attain higher returns than low-volatility assets.
  • Higher risk is usually implied
  • Lower fees associated with the accounts due to a higher level of risk.

As more capital moves towards the cryptocurrency and blockchain market, everyday employees and those who want to get involved with the digital markets can do so with the new implementations of Bitcoin and Cryptocurrency IRAs. A Bitcoin IRA is a great option for those who are uncomfortable or unfamiliar with the crypto landscape yet want to diversify their retirement accounts for higher levels of potential profit.

The options presented and reviewed in this guide are not the only options for IRAs that are delving and exposed to the cryptocurrency and Bitcoin market, however, if you choose an option that is external and hasn’t been reviewed by verified, proceed with extreme caution. As always ensure you do your own research! Each Bitcoin IRA is different and tailored for individual users. Find the one that best suits you and build up some profit!

FAQs

I'm an absolute beginner to Bitcoin but I want to get involved. What would InsideBitcoins recommend as far as IRAs?

For absolute beginners, the arguably best exchange suited for novices that want to get exposure to Bitcoin and cryptocurrency through an IRA is Coin IRA as indicated in our reviews above. Coin IRA offers a singular IRA product, which is their Bitcoin IRA product. Their support team also assists through the process. Account creation is quick and painless. A close second for absolute beginners looking to engage in cryptocurrency/Bitcoin IRAs would be BitcoinIRA.

What is the benefit of using a Bitcoin IRA as opposed to just buying or trading Bitcoin?

Since Bitcoin IRAs are structured in the form of retirement portfolios, there are various tax benefits that come associating with allocating income to a Bitcoin IRA. Additionally, if you don't know how to buy Bitcoin or are too scared of buying it without guidance, then a Bitcoin IRA is the right choice for you. Bitcoin IRAs also allow you to allocate part of your income (Depending on your 401(k) set up) that you wouldn't be allowed to touch anyways to Bitcoin investments.

How important is a Bitcoin IRAs track record?

Bitcoin IRA track records are very important; they shouldn't dissuade you from pursuing an option that you've cleared as legitimate in every other parameter, but if there is no track record of providing IRA accounts prior, then you should be cautioned.An IRA provider's company track record demonstrates they've been successful for x amount of time and obviously know how to do it correctly. As a result, look for track record, uphold it as important, but don't let it entirely dissuade you as Bitcoin IRAs are a new concept so there won't be a lot of providers.

How do I know which Bitcoin/Cryptocurrency IRA is the best option for me?

The first step is to see whether you want to engage in a general cryptocurrency IRA (Which is higher risk, but higher potential reward) or with a static Bitcoin IRA which is overall lower risk. Then, assess how much you're willing to allocate to your IRA. Many crypto and Bitcoin IRA providers require minimum investment amounts that can overall range.

What's the difference between a Bitcoin IRA and a Roth Bitcoin IRA?

The main differences between a standard Bitcoin IRA and a Roth IRA are the tax benefits and advantages that each one presents. You can visit the official Roth IRA website here where the difference between a Roth Bitcoin and standard Bitcoin IRA can be better understood.

 

 

Remember, all trading carries risk. Past performance is no guarantee of future results.
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John Iadeluca is the founder of the Wall Street hedge fund Banz Capital. He's a blockchain developer, quant, and consultant that specializes in the digital asset sector. He is an authority on blockchain and has written for a number of publications including Forbes.com.

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