One of the key ways to strengthen your retirement account is to make sure it is properly diversified. One interesting way to do so is by adding an investment like Bitcoin to your IRA.
While it’s certainly true that today’s markets are volatile when compared to those in years past, finding a way to make sure that you have a diverse set of investments in your IRA is a great way to ensure that you’ll be able to weather any financial storms. Choosing to use any number of cryptocurrencies as a hedge against market problems is often an excellent way to give yourself the safety net that you need.
As you might imagine, adding cryptocurrencies to your IRA isn’t as easy as just deciding to invest in Bitcoin. You’ll need to make sure that the company with which you work has a certain level of expertise in managing cryptocurrency investments, to say nothing of the security expertise needed to protect said investments. As such, we’ve compiled a solid list of suitable Bitcoin IRAs that can help you to find the type of company with which you may want to work.
We have chosen a shortlist of companies based on four factors – their experience in the field, the expertise displayed by the company, the fees charged, and the security offered. We have also included a list of frequently asked questions to help users learn a bit more about this entire process.
What Are Bitcoin IRAs?
A Bitcoin IRA is a specialized investment tool that allows you to add cryptocurrency to your retirement fund. These IRAs exist to allow investors a chance to get into the cryptocurrency game without having to directly purchase the currencies themselves while also allowing them to comply with IRS directives that treat cryptocurrencies as a type of property rather than as a type of currency.
Like Precious Metal IRAs, Bitcoin IRAs are usually overseen by a custodian that will undertake the bulk of the work of managing the account. These custodians play a role in helping their clients buy and trade cryptocurrencies, find storage solutions, and determine how they’d like to direct their accounts as they grow.
How Do I Select a Bitcoin IRA Company?
Choosing a good Bitcoin IRA company means keeping a few factors in mind. The most significant factor for most will be the experience that the company has in cryptocurrency, but many also put a premium on knowing that the company provides excellent security. It’s generally a good idea to look for a company with experience in managing general IRAs, as there are specific rules that have to be followed for these accounts.
We tend to look at security as the most crucial factor for finding a good Bitcoin IRA company. Given that any currency or federal insurance doesn’t back up these investments, it’s very easy to foresee a scenario in which a person could lose all of their assets. The more safety the company can provide its users, the better.
We also think that it’s important to consider fees when you’re looking at Bitcoin IRAs. Most companies will charge several different fees, ranging from basic administrative fees to holding fees based on the value of an individual’s investments. You must know exactly what you’re paying for when you work with one of these companies.
Are These Type of Investments Safe?
In all honesty, cryptocurrency trading does come with some genuine risks. With that said, many major investors feel comfortable with cryptocurrencies and seem to believe that risk is simply part of the investment world. Given that there are risks involved with trading in anything from stocks to property, it’s not surprising that there are risks associated with this type of trading.
You can, however, lessen your risks by working with a company that’s experienced in this field. A good Bitcoin IRA company with great security and excellent customer service can help you make better investment choices and keep those investments safe.
What Are Their Main Benefits?
The key benefit of investing in cryptocurrencies is that doing so allows you to spread your risks across multiple types of investments. The more types of investments that you have, the less of an issue you’ll have if one market suddenly experiences an unexpected downturn.
Our Selection Process for Bitcoin IRA Custodians
While our final list only has three companies on it, we actually started with around a dozen different Bitcoin IRA companies. The factor that we weighed most heavily in our final decision was the amount of experience that the companies had in dealing with IRA management and cryptocurrencies and dealing with alternative types of investments in general. We also weighed security very heavily since we know that most consumers care quite a bit about the safety of their assets. Our final criterion was fee structure – it was important to us that the companies we recommend had reasonable fees that wouldn’t unduly interfere with consumers’ savings.
3 Top Rated
With a significant focus on security and a reasonably well-established presence, BitIRA is a company that stands out. It does require a five thousand dollar deposit to open an IRA. You’ll have to work with a digital currency specialist to do so, but working with the company gives you access to six of the most influential cryptocurrencies on the market today.
One of the major selling points of this company is that it offers unlimited insurance on client accounts. The company also has a one million dollar cybersecurity insurance policy and a one million dollar consumer protection policy, really helping to sell the fact that it does care about what happens to its clients’ investments.
The company even focuses on transaction security, with multi-encryption encoding being used as the norm for transactions. In fact, they even ensure that physical keys are kept safe by moving them to nuclear bunkers guarded by armed guards for added security.
The fee structure for the company is, however, surprisingly low. With a setup fee of fifty dollars and a .05 percent monthly storage fee, and a one hundred ninety-five dollar yearly maintenance fee, it manages to have one of the lowest overall investing costs on the market.
– The company has fantastic physical security.
– It is hard to beat the insurance that BitIRA provides for its clients.
– The company uses excellent end-to-end security for all transactions.
– Clients have to meet with a specialist to open an account.
2. Regal Assets
Perhaps better known for working with precious metals investments, Regal Assets has been in the cryptocurrency game since 2017. The company stands out as the organization that offers the most varied slate of potential crypto investments, counting fourteen different coins among its products.
Regal Assets is also the most expensive of our three top picks to work with, with an initial investment of twenty-five thousand dollars required – a number that can be somewhat softened by rolling over an existing IRA. Like BitIRA, the company also requires that you work with a specialist to open an account.
Where the company sets itself apart, though, is in the realm of experience. Regal Assets was the first firm to get a cryptocurrency trading license, and it has been working in alternative investments for years. While getting to work with Regal Investments costs a lot up front, it’s also one of the few companies that charge a flat-rate fee – just one hundred dollars a year for administration and one-hundred-fifty dollars a year for storage.
– The company offers the most varied slate of cryptocurrencies of any Bitcoin IRA company.
– Regal Assets charges a flat fee for administration and storage.
– The company will insure up to two hundred fifty million dollars worth of assets.
– Regal Assets does require a very hefty initial investment.
– Clients can only open accounts after meeting with a specialist.
3. Bitcoin IRA
Bitcoin IRA might be the company most responsible for starting the trend of having investors put money into Bitcoin IRAs. It’s currently the biggest name in the field and the only one on our list to offer 24/7 trading. The company is also the company that has embraced being online, even offering their customers a chance to set up and manage their accounts entirely on the web.
The company also provides stellar security. With many systems claimed to be ‘military-grade,’ it certainly goes the extra mile to ensure that its customers get what they need. This, combined how easy it is setting up an account, really takes away some of the uncertainty that can come with this more novel form of investment.
Bitcoin IRA is also a standout in terms of pricing. While the company might not offer the most cryptocurrency investments (nine against Regal Assets’ fourteen), it only requires its customers to invest three thousand dollars in opening an account. The company also has a one hundred dollar option called a Saver IRA, which allows customers to put down an initial investment of one hundred dollars followed by monthly investments of one hundred dollars.
Unfortunately, the company’s low barrier of entry doesn’t extend to fees. While the company doesn’t publicly post its fee structure, customers have reported that it charges an initial fee of ten to fifteen percent of a customer’s first investment, plus two hundred and forty dollars each year. The company also charges a five percent fee for buying assets and a one percent fee for selling them, making them quite an expensive organization with which customers can work.
– The company makes it very easy to set up an account and start trading.
– Bitcoin IRA has great offline secure storage.
– The company offers up to one hundred million dollars in insurance.
– Bitcoin IRA has by far the highest fees on our list.
Technically speaking, you don’t have to have an IRA to invest in cryptocurrencies. If you want to hold onto your currencies safely, though, you should definitely think about opening one of these accounts.
If you are going to open an IRA, we have found BitIRA to be the best of the best. Not only does it have a relatively low barrier to entry, but it also has an excellent security setup. Bitcoin IRA might be easier to work with, but it has much more expensive fees. Regal Assets might offer more choices, but it does have a high barrier to entry. All three of these companies are great, though, and your ultimate choice between the three will definitely leave you working with a company that can help you grow your investments.