An IRA can be an incredible tool for preparing for your retirement. Not only does this instrument give you a better way to invest, but it gives you the freedom to do it your way. If you're looking for something that provides a little more diversity, though, you may not find exactly what you need when you're looking at a more traditional IRA.
One of the hottest types of investments today is cryptocurrency. If you are looking to invest towards your retirement, though, you won't get what you need from your traditional IRA. Instead, you'll need an IRA that is designed to help you manage, protect, and invest in cryptocurrencies. We've spent time looking at various crypto-friendly IRAs to figure out which IRAs will be the best fit for most investors.
Before we get there, though, it's best to answer a few basic questions that many have about this type of investing.
How Do Crypto IRAs Work?
Crypto IRAs are exactly what they sound like - particular types of IRAs that allow individuals to invest in cryptocurrencies like Bitcoin. More specifically, these IRAs follow IRS rules by providing custodians to manage the cryptocurrencies themselves - currencies that are technically classified as taxable properties.
These IRAs are special tools that allow investors to trade cryptocurrencies as they wish and store their investments securely. They work very similarly to Gold IRAs and fill a similar gap in the investment market.
Choosing a Reputable Cryptocurrency IRA Company
Perhaps the most important things to look at when choosing an IRA crypto company are the fees charged by the company and the security that the company provides. While fees are a given when dealing with any IRA custodian, security is even more critical because of the nature of cryptocurrency.
There's quite a bit to consider when you're looking at fees, though. There aren't just administrative fees - there are also storage fees, trading fees, and other fees that can make investing less profitable. As such, investors must look at what they're going to pay before choosing a specific company with which to work.
What About Safety?
Many people think that any form of cryptocurrency is inherently unsafe. Risk is absolutely part of investing, of course, but good IRA companies do all that they can to make sure that those risks are mitigated. The best IRA companies make sure that all data stored with them is physically secured and secured via encryption.
What Are The Main Benefits?
The main benefit of a crypto IRA is that it allows individuals to invest in cryptocurrencies and add them to their retirement portfolios. At the end of the day, cryptocurrencies are simply relatively novel forms of investment that can provide a bit of diversity to a portfolio and thus can play an essential role in helping people to hedge against any significant changes in the economy as they prepare to retire.
How We Evaluated The Best Companies?
Our process for choosing the best crypto IRA companies was reasonably straightforward. We started by looking at companies we already knew had experience managing IRAs, then looked at those who also had experience managing other types of assets like cryptocurrencies and precious metals.
From there, we started looking at the security capabilities of various companies. It's frighteningly plausible that a criminal could easily wipe out an individual's entire IRA in one fell swoop, so we decided to focus on those companies that would have the best chance of providing the type of security that investors need.
We also wanted to make sure that any companies we recommended had reasonable fee structures. Holding one of these accounts tends to be more expensive than keeping a traditional IRA, so it was our goal to look for companies that minimized costs where possible.
Best of the Best
#1
4.7 / 5.0 stars
BitIRA is one of our top choices because of its security features. With insurance covering your assets dollar for dollar and offline cold storage for your keys, it's an incredibly safe place to keep your investments.
Pros
Cons
Established in 2017, BitIRA is one of the leading names in the industry and our top recommended crypto IRA company. With a reputation for providing excellent security for both storage and transactions, it stands out with its fantastic insurance program.
The company also offers excellent security at the most vulnerable points of online transactions, with multi-encryption encoding used in all transactions. Private keys can be moved to cold storage offline once they are finished.
BitIRA's excellent security measures are all top of the line, which gives them an air of confidence that it's hard to find elsewhere. With dollar-for-dollar insurance coverage, it's easy for investors to feel the same way.
Though the company requires a minimum five thousand dollar investment to get started, the most significant barrier to entry is that you have to work with a specialist to open your account. Once open, though, you can buy and trade the most popular forms of cryptocurrency and add them all to your portfolio.
The fee structure for the company is hard to find online, but customers show a relatively straightforward set of costs for which customers will need to prepare. Setting up an account costs fifty dollars, with a one hundred ninety-five dollar maintenance fee assessed every year.
Storage costs vary by the amount of money in each account, with the company charging about .05 percent per month to keep your items offline and secure.
#2
4.1 / 5.0 stars
A company that manages to do it all, Coin IRA provides excellent storage options, a one hundred million dollar insurance ceiling, and trading around the clock.
The first company to allow individuals to invest in cryptocurrencies through their IRAs, Coin IRA is a trendsetter. It is very easy to use and supportive of users that want to take total control of their accounts; there's a reason this company is named in our #1 spot.
Pros
Cons
Unlike most other IRA companies, Coin IRA makes it very easy to set up your account and trade. You can setup an account in just a few minutes on the company's website, and trading usually starts within a few days of a user's first deposit.
The company currently allows users to trade nine different types of cryptocurrency, including BTC and Ethereum, with a three thousand dollar deposit minimum necessary for users to get started.
The company's also very security conscious, with excellent encryption on its trading platform and offline storage for digital assets. It even allows users to insure up to one hundred million dollars in digital assets for once.
The cost of all this, though, can be high. Customers are expected to pay between ten and fifteen percent of their initial investment's value up-front as a set-up fee, plus a two-hundred forty dollar custodial fee each year.
Users must also deal with a seventy-five dollar asset conversion fee, plus a five percent fee on purchases and a one percent fee on sales.
#3
3.9 / 5.0 stars
A unique company that allows consumers to invest in both digital and traditional assets, Regal Assets is the best company to work with if you're looking to invest in a variety of different cryptocurrencies.
Pros
Cons
Regal Assets is one of the better-known firms that allows individuals to invest in so-called alternative assets. The company added crypto to its list of portfolio additions in 2017 and has worked hard to ensure that its crypto offerings are as solid as its offerings in precious metals.
This company isn't one for those who are hesitant to invest, though. Regal Assets requires an initial investment of twenty-five thousand dollars, which must be done with the help of a company representative after filling out an online form.
Regal Assets is, however, a real trendsetter in the world of cryptocurrencies. The first American company to become licensed in crypto trading allows its customers to invest in virtually any cryptocurrency that catches their eyes.
Regal Assets also has a unique flat fee structure, which requires customers to pay two-hundred and fifty dollars a year – one hundred dollars for administration and one-hundred-fifty for storage.
Final Verdict
The number of crypto IRA firms out there is multiplying, so it's more important than ever to figure out which companies are worth your time. It takes a great deal of experience managing assets to keep a client's retirement safe, so it's a must to work with those companies that already have proven track records.
At the moment, BitIRA ranks as the best overall choice because of its ease of use, excellent security, and the ability to trade no matter the time of day. The security features are a significant selling point here, of course, but it's hard to deny the role that ease of use plays.
CoinIRA is our second choice, mainly because they offer such a wide range of cryptocurrencies to their clients. This, along with the fact that the company has a great reputation for trading in precious metals, makes it a fantastic choice for those who want to diversify their portfolios.