A typical IRA, short for an individual retirement account, is a great thing to have in your portfolio, but it shouldn’t be the only thing. With the global economy facing more uncertainties, it’s impractical to rely on paper-based money models like these solely.
Some have turned to precious metals IRAs, which is definitely a great option. More recently, many people have opted for IRAs for cryptocurrencies, such as Bitcoin.
Bitcoin is like no other currency, and that makes their IRAs unique as well. You need a real-savvy type to handle your account, especially with valid security concerns. Your IRA custodian also needs to know how trading cryptocurrency works. We’ve looked at some of the best Bitcoin IRAs around, factoring in many essential qualifications.
First, we’ll go over some common questions about Bitcoins.
Can I Buy Bitcoin in an IRA?
The very first question before anything else is can Bitcoin be held in an IRA? The answer is two sided. Yes you can buy it and hold it, however not all companies work with cryptocurrencies.
Depending on your custodian, they may not offer crypto and therefore you'd have to change custodians if you wanted to include Bitcoin in your portfolio. The companies we'll review later on specifically work with crypto.
How do Individual Retirement Accounts Work?
A Bitcoin IRA simply lets you bring cryptocurrencies into your investment portfolio. Bitcoin is classified as property by the IRS, and they’re subject to taxes. That means you need someone qualified to handle your account.
There are unique firms for people to trade their Bitcoin safely and which have digital storage options. More on that later.
How to Choose a Reputable Company?
Before choosing a IRA company, you need to examine two things: their security and their costs. Cryptocurrency is entirely separate from paper assets, and hacking can be devastating for investors.
So, assets are kept in digital vaults that safeguard against hacking and keeps investments insured, provided they don’t surpass the maximum value allowed.
Think as well about costs. You’ll likely have multiple fees included in your account, such as storage. This could take a substantial bite out of your earnings potential. Finally, make sure your IRA company has a good reputation with all kinds of IRAs.
Ideally, you want to find a company who has many recent (and consistent) 5 star reviews from customers. There are hundreds of companies out there, but only a handful meet this criteria.
Is This Type of Investment Safe?
Although some might think that the novelty of cryptocurrencies means these IRAs are always going to be at least a little dangerous, that’s not a universal truth. However, you need to be incredibly diligent with choosing a company to work with.
Bitcoin IRA firms totally understand this. Their encoding and other safety measures are meant to instill an overall sense of trust. There are things you might’ve never thought of, but once you learn about them, you’ll get why they exist. Stay away from firms that having lackluster security features.
What are the Main Benefits?
The primary argument for these type of IRAs is how they diversify your portfolio. That means you can have more money for retirement and feel way more secure. If you’ve already invested in precious metals, you know how helpful multiple options are.
While cryptocurrencies are far newer than cash and gold, they have tremendous upside despite the volatility. Getting in on Bitcoin now is like the original gold rush. You can see a massive increase in your portfolio by getting in before the price explodes further. Plus, you can stay away from some aggressive taxation with them.
The Best of the Best
We went over close to one dozen IRAs to make our picks. To start, we looked for businesses with plenty of IRA management history. They also needed to offer Bitcoin IRAs, obviously.
Next, we thought about security fears. We know how a breach could leave an IRA completely void. Therefore, we only went for ones that have top-level security and excellent insurance plans, in case anything were to happen.
Next, we went for ones that weren’t too expensive. We don’t want unfair fees stifling your portfolio progress.
Lastly, we wanted to find companies where lots of customers were raving about and left positive reviews.
Final Verdict: Which Bitcoin IRA Custodian Is Victorious?
With IRA firms seeing the light about Bitcoin and other kinds of cryptocurrency, you need a sound plan yourself. This begins with finding a quality Bitcoin IRA custodian. You should factor in their qualifications, security features, and customer service. A company being decent should not be enough. That’s the bare minimum, and there’s so much better out there.
We chose BitIRA as the best because of its ease of use, non-stop trading availability, and awesome security. How can you not feel safe with literal bunker and guard storage?
The runner-up is Regal Assets, because they have a great range of cryptocurrencies allowed. Make sure you know about the cryptocurrency you're investing in, of course.
Whichever one sounds better for you is the right one. Think about your earnings and what your retirement hopes are. Let us know if you have any other questions and we'll be happy to assist.