6 Best Crypto & Bitcoin IRAs for 2023

The increasingly popular way to buy Bitcoin is through an Individual Retirement Account (IRA). In doing so, you can invest up to $6,500 ($7,500 for the over 50s) into Bitcoin without paying tax. These limits are often increased each year, so you can build your exposure organically.

This guide reviews the best Bitcoin IRA providers for 2023. We examine factors like fees, safety, payments, customer service, and supported cryptocurrencies to help you make an informed decision.

Best Crypto IRA Accounts Reviewed

The best crypto IRAs offer competitive fees, top-notch customer support, and a user-friendly experience. You’ll also want to ensure the IRA account comes with solid security features, meaning your Bitcoin is kept safe at all times.

Read on for more information about the best IRA accounts supporting Bitcoin investments.

1. Bitcoin IRA – Top-Rated Bitcoin IRA Supporting 60+ Cryptocurrencies and $700 Million in Custody Insurance

Bitcoin IRA is the best option to consider today. This provider was one of the first to launch fully-fledged Bitcoin IRAs, with more than 170,000 users on its books. The investment process is very straightforward at Bitcoin IRA. After opening an account, you can fund it with ACH or a domestic bank wire.

Finally, you can buy Bitcoin; the BTC tokens are automatically added to your IRA account. In fact, not only does Bitcoin IRA support Bitcoin but over 60 other cryptocurrencies. This includes some of the best altcoins, such as Litecoin, Ethereum, Solana, and Chainlink. However, there is a major drawback with Bitcoin IRA – it doesn’t publish its fee structure.

Bitcoin IRA states that service fees depend on the investment amount, but no figures are given. Instead, users are advised to contact Bitcoin IRA via telephone or email. In terms of safety, Bitcoin IRA has secured a $700 million insurance fund with BitGo, which is backed by Lloyd’s of London. This is to cover investors in the event of a remote hack.

What’s more, Bitcoin IRA keeps 100% of client-owned cryptocurrencies in cold storage. Its website is protected by SSL encryption. However, two-factor authentication is not available. Nevertheless, our Bitcoin IRA review found the provider offers a mobile app for iOS and Android. This makes it easy to track how your cryptocurrency investments are performing.

The Bitcoin IRA app is rated 4.5/5 on both Google Play and the App Store. In addition to IRAs, Bitcoin IRA also supports 401 (k)s. Users have the option of transferring an existing 401 (k) over and converting the portfolio to Bitcoin.

2. iTrustCapital – Competitively-Priced IRA Accounts Supporting Crypto, Gold, and Silver 

Next up is iTrustCapital, which is the best Bitcoin IRA for fees. In a nutshell, there are no setup or maintenance fees, and cryptocurrency transactions attract a commission of 1%. Although this is higher than the best crypto exchanges, it’s competitive in the context of Bitcoin IRA accounts.

In terms of markets, iTrustCapital supports 34 cryptocurrencies. In addition to Bitcoin, this includes some of the best ERC-20 tokens, such as Ethereum, Basic Attention Token, SushiSwap, Enjin, and Year.Finance. What’s more, iTrustCapital also supports precious metal investments, covering gold and silver.

This enables you to diversify into other stores of value, while still maximizing your IRA tax advantages. Gold trades are charged $50 above the spot price, per ounce. This is reduced to $2.50 per ounce for silver trades. To get started with iTrustCapital, you’ll need to meet a minimum deposit requirement of $1,000.

After buying cryptocurrencies, the tokens are stored with institutional custody providers. This includes Fireblocks and FortressTrust, both are qualified custodians under the SEC. iTrustCapital – which has over 200,000 clients, has excellent reviews in the public domain. We found that iTrustCapital is rated 4.6/5 on TrustPilot and 4.7/5 on Google.

3. Coin IRA – Established Crypto IRAs Supporting 19 Coins and 3 Precious Metals

Coin IRA is another top-rated Bitcoin IRA provider. This is another good option for investors who want to create a diversified IRA portfolio. Coin IRA supports 33 cryptocurrencies, covering everything from Bitcoin, Ethereum, and Compound to Maker, Stellar, and Uniswap. In addition, Coin IRA also supports precious metals.

This includes gold, silver, and platinum. We found that Coin IRA has one of the highest upfront investment requirements at $5,000. That said, subsequent deposits can be made at any amount. There are no fees to get started, nor maintain your Bitcoin IRA. Trading commissions apply when buying and selling assets.

All supported cryptocurrencies can be purchased with a commission of 1.25%. When selling cryptocurrencies, the commission is reduced to 1%. There are no commissions to pay when trading precious metals. However, you should assess the price before trading, in comparison to global spot prices.

Coin IRA charges $2 per month for precious metal storage or 0.25% annually (the greater of). In terms of cryptocurrency storage, client-owned tokens are stored with Ledger Enterprise. This custodian utilizes institutional-grade security, including cold storage, 24/7 protection, and a FIPs level III hardware framework.

4. Equity Trust – Self-Directed Bitcoin IRAs Supporting Many Other Asset Classes

If you’re looking to diversify across many different asset classes, Equity Trust might be the best Bitcoin IRA for you. In addition to cryptocurrencies, this IRA provider supports stocks, ETFs, and mutual funds. Not to mention precious metals, foreign currencies, and private equity.

Some of the best cryptocurrencies supported by Equity Trust include Bitcoin, Ethereum, Chainlink, Basic Attention Token, Litecoin, and Stellar. However, we should note that Equity Trust is considered expensive – especially if you’re planning to invest small amounts.

This is because fees are charged based on how much you have invested. For example, those with a portfolio value of under $15,000 will pay $225 per year. Anything between $15,000 and $25,000 is charged $320. This increases incrementally until the portfolio hits $2 million.

At this point, fees are capped at $2,250 annually. Moreover, Equity Trust charges an application fee of $50. On top of traditional and Roth IRAs, Equity Trust also supports 401 (k)s. The minimum investment requirement at Equity Trust is just $500. However, be wary of the fixed pricing structure when choosing an investment amount.

5. My Digital Money – User-Friendly Crypto IRAs With Automated Trading Features

Next up on this list of Bitcoin IRAs is My Digital Money. This is one of the best options for beginners, considering its user-friendly dashboard and simple account opening process. It takes minutes to register and accounts can be funded with a bank transfer or a 401 (k) rollover.

You’ll then have access to your Bitcoin IRA login. To further help newbies learn the ropes, My Digital Money also offers a demo account. This enables users to practice buying and selling cryptocurrencies with paper funds. My Digital Money supports 19 cryptocurrencies, including Bitcoin, Stellar, Solana, Bitcoin Cash, and Ethereum.

You can also trade Uniswap, Decentraland, Chainlink, and other emerging cryptocurrencies. My Digital Money supports various trading tools, including stop-loss orders. This allows you to cash out a losing cryptocurrency trade if it drops below a certain amount. You’ll also find take-profit orders, allowing you to lock in profitable trades.

In terms of fees, crypto IRAs can be opened without charge. Trading commissions apply and are charged depending on the account tier. This starts at 1.9% per slide for accounts with under $25,000 in trading volume. The lowest commission is 0.9%, but this requires at least $500,000 worth of volume. Finally, My Digital Money also supports gold, silver, and platinum.

6. Tax Free Crypto – 24/7 Trading Facilities and No Minimum Investment Requirements

The final option is Tax Free Crypto. This provider offers a 24/7 trading platform that comes with pricing charts, bid/ask quotes, and portfolio management tools. Tax Free Crypto is suitable for those on a budget, considering there is no minimum investment requirement.

Moreover, Tax Free Crypto does not charge any set-up fees. There are no maintenance or storage fees either. Although the platform claims to charge low investment fees, it doesn’t publish its pricing structure. This is a major drawback, as the best Bitcoin IRA accounts have transparent commission rates.

Another drawback is that Tax Free Crypto does not support other assets. Therefore, if you want to diversify your IRA investments, you’ll need to use another provider. Nonetheless, we like that Tax Free Crypto has robust security controls.

In addition to keeping 100% of client-owned cryptocurrencies in cold storage, wallets are monitored by a 24/7 security team. It also offers insurance on client holdings, but the specific amount is not published.

How to Pick the Right Bitcoin IRA for You

This section takes a much closer look at how to select the best crypto Roth IRA for your requirements.

Security and Trust

Before exploring Bitcoin IRA fees and other metrics, it’s imperative to assess how safe your investments are. There are several things to check here.

First, you’ll want to assess the reputation of the provider. For instance, explore how long it has been in business and how it is rated by existing and former clients. Next, you’ll want to know how your cryptocurrency investments will be kept safe.

We found that the best Bitcoin IRAs keep 100% of client-owned funds in cold storage. This means the wallets are never connected to live internet servers. As such, remote hacks are not possible. But cold storage alone isn’t enough. We much prefer Bitcoin IRAs that have patterned with regulated custodians.

These are financial institutions that are approved by national regulators, such as the SEC. Custodians are responsible for safeguarding cryptocurrencies with institutional-grade security controls. Not only that, but leading custodians have insurance coverage. For instance, BitGo has secured insurance of $700 million from the Lloyd’s of London.

Account Fees and Trading Commissions

Low fees are also very important when choosing a Bitcoin IRA provider. Crucially, you don’t want your retirement fund eaten away by high account fees and commissions.

You’ll first want to check whether or not the provider charges an application fee. Equity Trust charges $50 for online applications, but most other providers waive this fee type.

• Next, check whether maintenance fees apply.
• This is a fee charged simply for keeping the Bitcoin IRA open.
• For instance, Equity Trust charges $225 per year for IRA holdings of under $15,000.
• In contrast, iTrustCapital doesn’t charge any maintenance fees at all.

Outside of account fees, the majority of Bitcoin IRAs charge trading commissions. This is how providers make most of their money. We found that commissions average 1% when buying and selling cryptocurrencies. This is much higher than traditional crypto exchanges. However, you’ll be trading tax-free, which will save you much more in the long run.

Available Assets

Depending on your investment strategy, you might be looking to build a diversified portfolio of cryptocurrencies. If so, it’s important to check what markets the Bitcoin IRA provider supports. For example, Bitcoin IRA not only supports Bitcoin but over 60 other cryptocurrencies.

This includes some of the best meme coins like Dogecoin and Shiba Inu. You’ll also find Polkadot, Uniswap, FileCoin, Chainlink, Cosmos, AAVE, and many other emerging projects. Moreover, Bitcoin IRA – like several other providers, also supports precious metals. This means you can add gold and silver to your IRA portfolio.

Account Minimums and Limits

Account minimums should be checked before registering with a Bitcoin IRA provider. Cryptocurrencies are volatile, so investing more than you can afford is not a good idea. If you’re on a very small budget, you might want to consider Equity Trust, which has a minimum requirement of $500.

If this is too high, Tax Free Crypto has scrapped the minimum investment requirement altogether. At the other end of the scale, Bitcoin IRA and Coin IRA have account minimums of $3,000 and $5,000 respectively.

In terms of maximum limits, you’ll want to avoid depositing more than your annual contribution cap. If you do, the additional funds will not benefit from tax-free withdrawals. According to the IRS, the maximum IRA contribution limit is $6,500 for 2023. This is increased to $7,500 if you’re 50 or older.

Are Bitcoin IRA Accounts Legal?

The Bitcoin IRAs discussed today operate legally. However, you might have noticed that traditional trading platforms like Interactive Brokers, Webull, and TD Ameritrade don’t support crypto-related IRAs. This is particularly interesting, considering these brokers support cryptocurrency trading, but not through an IRA.

According to a CNBC article, traditional brokers are wary about encouraging cryptocurrency investments in a retirement account. After all, Bitcoin is still a brand-new asset class – it’s only been in existence since 2009. Moreover, cryptocurrencies are still unregulated financial products. This means that traditional investor protections do not apply, as explained by the SEC.

Ordinarily, conventional assets, such as stocks and mutual funds, are covered by the SIPC. Should the IRA broker go bust, the SIPC covers investments up to $500,000 (including $250,000 in cash balances). However, the SIPC doesn’t cover cryptocurrencies – so do bear this in mind.

Conclusion

Bitcoin IRAs are a solid way to gain exposure to cryptocurrencies without paying taxes. Having explored the best providers in the market, Bitcoin IRA stands out. Its IRA accounts support over 60 cryptocurrencies, not to mention gold and silver.

Most importantly, Bitcoin IRA has access to a $700 million insurance fund, backed by Lloyd’s of London. Just remember that cryptocurrencies are not covered by the SIPC, so due diligence and research are crucial before proceeding.

References

• https://www.bitgo.com/newsroom/press-releases/bitgo-secures-over-700-million-of-cold-storage-insurance-capacity/
• https://www.washingtonpost.com/politics/2022/08/11/why-hackers-are-able-steal-billions-dollars-worth-cryptocurrency/
• https://www.sec.gov/files/ia-6240-fact-sheet.pdf
• https://www.bloomberg.com/press-releases/2021-04-21/bitgo-secures-over-700m-of-cold-storage-insurance-capacity
• https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
• https://www.cnbc.com/2021/09/14/experts-warn-against-putting-crypto-like-bitcoin-in-self-directed-ira.html
• https://news.harvard.edu/gazette/story/2021/09/regulating-the-unregulated-cryptocurrency-market/
• https://www.sec.gov/oiea/investor-alerts-and-bulletins/exercise-caution-crypto-asset-securities-investor-alert

FAQs