Advantages, disadvantages and who should create an account
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Fees
3.99% one-time fee; 2% trading fee $100/month Saver IRA Balances under $25,000: $20/month; balance over $25,000: 0.0008%
Investment types
Cryptocurrencies and gold
Fees
3.99% one-time fee; 2% trading fee $100/month Saver IRA Balances under $25,000: $20/month; balance over $25,000: 0.0008%
Investment types
Cryptocurrencies and gold
Overall assessment
Is Bitcoin IRA right for you?
If you want to use cryptocurrencies for retirement investments, you can’t do that with a regular IRA. You must set up a self-directed IRA (SDIRA) since investments such as cryptocurrencies and precious metals are classified as alternative assets.
Formed in 2016, Bitcoin IRA offers SDIRAs for investing in cryptocurrency and precious metals. The account lets you roll over existing funds from several different retirement account types, and you can set up automated contributions with the Saver IRA.
Although it allows you to trade gold and more than 60 cryptocurrencies, it is not the best idea for traders looking for other alternative assets such as silver and real estate. Additionally, it charges multiple fees, and – while it lists a $3,000 account minimum – you’ll need to call a representative to get basic information since deposit fees are based on your investment amount. However, we’ve listed the trading fees, monthly fees, and Saver IRA fees further down.
Bitcoin IRA vs. BitIRA
Bitcoin IRA and BitIRA offer similar IRA services for alternative assets such as cryptocurrencies, but you will get more out of the Bitcoin IRA. Not only does it offer a lower minimum requirement, it also offers gold and a wider selection of crypto assets. In addition, it offers up to $700 million in insurance coverage. BitIRA offers $100 million in insurance coverage.
Bitcoin IRA vs. iTrust Capital
While both Bitcoin IRA and iTrustCapital offer SDIRA services for cryptocurrencies and other assets, the two platforms have different features. Firstly, you pay less to create an account with the latter, and you can exchange both silver and gold.
The Bitcoin IRA has a stronger selection of cryptocurrency. It offers more than 60 cryptocurrencies, while iTrustCapital only provides 30. But iTrustCapital makes up for this by allowing you to earn rewards of up to 9.5% for polka dot staking.
Ways to Invest with Bitcoin IRA
Bitcoin IRA
Bitcoin IRA is best for retail investors looking to build wealth for retirement with cryptocurrencies. It offers SDIRAs that allow you to invest in such alternative assets, and it allows for 24/7 over-the-counter trading. You need at least $3,000 to get started, and the platform lets you roll over existing assets from 401(k)s, 403(b)s, IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.
But the fees are on the higher side. In addition to the minimum requirement, you must pay a setup fee that varies based on the amount you plan to invest. On average, this fee is 3.99%, but it varies based on your balance. You also pay $20 per month if your balance is less than $25,000. If your balance exceeds this amount, you pay 0.0008% each month.
However, it offers more than 60 cryptocurrencies, including bitcoin, litecoin, cardano, dogecoin and more. These have a 2% transaction fee, meaning you pay 2% every time you buy or sell. Although the platform is not a crypto wallet or exchange, it connects you to exchanges to allow trading.
This is an extensive crypto selection compared to other platforms (eg CoinIRA and iTrustCapital) that offer 30 or fewer cryptocurrencies. But Bitcoin IRA’s selection is still limited compared to Alto IRA’s. Alto IRA currently supports more than 200 cryptocurrencies, thanks to the Coinbase integration.
But when it comes to the transition process, transferring assets from an existing retirement account seems pretty straightforward. After you set up an account with the Bitcoin IRA, it will request a transfer of those assets from the 401(k)’s custodian. You will then be able to purchase the desired cryptocurrencies once the funds reach your account.
But you can also invest in real gold. It allows you to purchase ownership rights to US certified gold bullion. In addition, you can exchange gold 24/7, and the platform says it insures the gold through Brink’s bullion vault facility.
Savings IRA
This account option costs $100 per month and gives you access to automated contributions and monthly recurring contributions (ie you can link a savings or checking account to contribute regularly). As with the other IRAs, you will also be limited to cryptocurrencies and gold with this account.
Bitcoin IRA: Is it reliable?
Better Business Bureau gives Bitcoin IRA an A+ rating. Bureau ratings range from A+ to F, so this is the highest rating a company can receive.
When evaluating businesses, the BBB considers several factors. These include type of business, time in business, customer complaint history, licensing, government actions, advertising issues, bankruptcies and more.
Bitcoin IRA’s list is clean of lawsuits or scandals. It has closed two complaints in the past 12 months, and it currently has no outstanding complaints, as shown by its BBB profile.
Bitcoin IRA — Frequently Asked Questions (FAQ)
Yes. Founded in 2016, the Bitcoin IRA uses several security measures – including cold storage, multi-signature encryption and custody insurance – to keep your assets safe. The stock exchange also has no record of website hacking.
The Bitcoin IRA has a one-time service fee that it charges up front. This amount varies based on your initial investment amount. In addition, the platform also states that it requires an escrow and security fee. You must call the representatives to get fee information for your investment amount.
No. You will only be able to purchase cryptocurrencies through the Bitcoin IRA platform.
