Crypto & Bitcoin IRAs: Expert Ranking 2024

In this guide, we’ll walk through 5 cryptocurrency IRAs that can help you save thousands of dollars in taxes. Our experts reviewed the best options on the marketplace based on factors like fees, minimum investment amount, and user reviews! 

Quick Look: The 5 Best Bitcoin and Crypto IRA platforms 

Can I use a traditional IRA provider to hold crypto? 

At this time, traditional IRA providers like Fidelity don’t give users the ability to hold crypto directly. However, traditional IRAs allow customers to buy crypto ETFs and other crypto-backed funds. 

Should I use a crypto IRA or a traditional IRA? 

You should consider using a crypto IRA if you prefer to invest directly in cryptocurrency rather than invest in crypto-backed funds.

There are some advantages to investing directly in cryptocurrency. If you use a crypto IRA, you’ll be able to withdraw your holdings as crypto once you are eligible for withdrawals. If you invest in ETFs, you’ll only be able to withdraw your holdings as cash. 

When to use a crypto IRA: If you prefer to invest in cryptocurrency directly, you should use a self-directed IRA provider that allows you to buy your cryptocurrency in your retirement account. 

‍When to use a traditional IRA: If you are happy with investing in crypto-backed funds, you can simply invest in crypto ETFs through your traditional IRA provider.

What are the best Bitcoin and cryptocurrency IRA platforms?

40+ cryptocurrencies

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iTrustCapital

iTrustCapital offers one of the lowest-cost crypto IRA platforms. It's a great option for investors looking for low fees and quality customer service. In addition, the platform allows users to invest in physical gold and silver.

TrustPilot rating

4.9 (3,500+ reviews)

Custodian

Fortis Bank

Pricing and fees

• 
  $0 monthly fees
• 
  $1,000 account minimum
• 
  Additional contribution minimum of $500
• 
  1% fees on crypto transactions
• 
  $50 gold transaction fee over spot per ounce
• 
  $2.50 silver transaction fee over spot per ounce

60+ cryptocurrencies

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Bitcoin IRA

Bitcoin IRA was one of the first companies to provide a Bitcoin IRA solution. The platform offers a customizable trading dashboard and a wide selection of cryptocurrencies. However, it does have higher fees than other IRA providers.

TrustPilot rating

4.3 (40+ reviews)

Custodian

Qualified custodian based on asset

Pricing and fees

• 
  $1,000 account minimum
• 
  2% crypto transaction fee
• 
  2.99% upfront service fee
• 
  0.08% monthly security fee

200+ cryptocurrencies

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AltoIRA

AltoIRA is an alternative investment IRA provider that offers access to real estate, art, and cryptocurrencies, among other asset classes! AltoIRA provides the widest selection of cryptocurrencies of any IRA provider on this list, along with relatively low fees.

TrustPilot rating

4.4 (1,200+ reviews)

Custodian

Coinbase

Pricing and fees

• 
  $37.50 - $100 quarterly fee (depending on amount invested)
• 
  $50 account closure fee
• 
  1% fee for crypto transactions
• 
  $10 investment minimum

15+ cryptocurrencies

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BitIRA

BitIRA rose to prominence for offering $0 monthly fees. However, BitIRA has the highest account minimum of any IRA provider on this list.

TrustPilot rating

n/a (no reviews on Trustpilot)

Custodian

Equity Trust Company

Pricing and fees

• 
  $5,000 account minimum
• 
  In the past, BitIRA charged a $50 account setup fee, $195 annual maintenance fee, and a 0.05% crypto storage fee. However, BitIRA has since removed mentions of fees from its website.

3 cryptocurrencies

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Rocket Dollar

Rocket Dollar allows users to open a self-directed IRA or self-directed solo 401K, enabling investment in a variety of assets within a retirement account—including cryptocurrency. It’s a great choice for investors seeking the ability to invest in assets like real estate or startups. The platform has partnered with exchanges like Gemini and Kraken to make IRA services more accessible.

TrustPilot rating

n/a (no reviews on Trustpilot)

Custodian

Digital Trust

Pricing and fees

• 
  No minimum opening deposit
• 
  $30 monthly fee
• 
  $360 setup fee for Silver, $600 for Gold

How else can I minimize my crypto tax burden? 

Remember, cryptocurrency IRAs aren’t the only way to reduce your crypto tax burden. For more strategies, check out our guide to legally reducing your crypto tax bill. 

What is an IRA?

An IRA is an investment account that allows individuals to save for retirement on a tax-free or a tax-deferred basis. In a crypto IRA, the underlying assets that you are investing in are cryptocurrencies like Bitcoin, instead of stocks/bonds/or other investments.

While you can’t directly invest in cryptocurrencies through most IRA providers, self-directed IRAs do allow investors to build their savings through alternative investments such as real estate, precious metals, and cryptocurrencies. 

For tax-conscious individuals, a Bitcoin IRA can be attractive as you don’t trigger taxable events when trading within these accounts like you normally would when trading on a cryptocurrency exchange.

How do crypto IRA taxes work? 

You should consider using a crypto IRA if you prefer to invest directly in cryptocurrency rather than in crypto-backed funds.

Traditional IRA 

In a traditional IRA, all of your contributions are deducted from your taxable income. You pay taxes on earnings that you withdraw once you are of retirement age. 

Roth IRA 

With a Roth IRA, you are taxed on your contributions upon deposit. 

However, you are not taxed when withdrawing from your Roth IRA. This can make a big difference on your total tax liability if you expect to be in a higher tax bracket in the future.

Are crypto IRAs safe? 

All the cryptocurrency IRAs listed above use custodians to keep your cryptocurrency safe from hacks. 

If you’re interested in getting started with a cryptocurrency IRA, you should make sure to carefully research your IRA provider’s approach to keeping your assets secure. Some providers provide insurance and partner with third-party custodians to make sure that your holdings are secure.

What are the drawbacks of a crypto IRA? 

Before you get started with a crypto IRA, it’s important to understand its drawbacks. 

Contribution limits

Unfortunately, you can’t put your entire savings within your cryptocurrency IRA. IRAs have a contribution limit of $7,000 a year for workers under 50 and $8,000 a year for workers over 50.

Income limits on contributions

In order to contribute to an IRA, you need compensation income that must equal or exceed the amount of your IRA contribution. Compensation includes wages, salaries, and self-employment income among other types of income.

Your ability to contribute to a Roth IRA is limited by your adjusted gross income (AGI) and your filing status. For 2024 single filers, the phase-out begins when your AGI is $146,000 and you are fully phased-out from Roth IRA contributions when your AGI is $161,000.

Limited withdrawals 

In both a traditional and Roth IRA, you will not be allowed to withdraw your money until you are 59 ½ years of age. If you withdraw your funds earlier, you will be subject to a 10% penalty. 

If you’re looking to take short-term profits on your cryptocurrency investments, holding your cryptocurrency in an IRA may not be the right strategy for you. 

Initial set-up

Unlike a 401(k), crypto IRAs like the ones listed above are set up without the help of your employer and without matching contributions.

File your crypto taxes today

Looking for an easy way to manage your cryptocurrency taxes? 

More than 500,000 crypto investors use CoinLedger to simplify the entire crypto tax reporting process. 

All you have to do is connect your exchanges and wallets. The app will handle all of the number crunching and generate auto-filled tax forms for you with the click of a button. Import these forms into your preferred tax software like TurboTax or TaxAct or give them to your tax professional. 

You can get started today with a free preview report. 

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