Bitcoin IRA Review 2021: Tax-Free Cryptocurrency Trading

Susie Ladner

Bitcoin IRA is an online platform that offers 24/7 cryptocurrency trading inside an IRA with a relatively low minimum deposit and robust custody insurance. It connects clients with digital wallets and coin exchanges that mark the crypto trade. Also, it provides a full-service solution that facilitates the process for account set up, rollover of funds from an existing IRA custodian, access to the self-trading platform, and moving funds to a secure digital wallet for all retirement account types.

Overall rating

4.9

Summary: If you’re a frequent crypto trader or looking to grow your crypto portfolio at tax-free returns, Bitcoin IRA has you covered.

Bitcoin IRA

bitcoin ira logo

Varies

Fees

$100

Min. Deposit


Reviews

5

Account Opening

5

Deposits & Withdrawals

4

Fees

5

Trading Platform

5

Markets & Products

5

Customer Service

5

Education

5

Safe & Secure

Pros

  • First Bitcoin retirement company
  • Recurring contributions and automatic investing
  • Diversified investment options
  • Secure digital wallet
  • 24/7 self-trading
  • Custody insurance
  • 100% offline storage
  • No complicated LLC required

Cons

  • Modest fees
  • Limited financial advisory

Best For

  • Superior customer service
  • Unmatched security
  • Tax-free cryptocurrency investing
  • Earning interest

Features

HQ15303 Ventura Blvd., Suite 1260
Sherman Oaks, CA 91403
FeesVariable, the average annual fee is around 5%
Minimum Deposit– Self-Directed IRA: $3,000
– New Saver IRA: $100
– IRA Earn: $10,000
Minimum Trade$0.01
AccountsTraditional IRA, Roth IRA, SEP IRA, Simple IRA, 403b, and 401k
CryptocurrenciesBitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Stellar Lumens (XLM), Zcash (ZEC), Bitcoin Cash (BCH), Ethereum Classic (ETC), and Digital Gold (DG)
Digital WalletAvailable
Trading PlatformWeb App

In depth review on Bitcoin IRA

Founded in 2016, Bitcoin IRA is the world’s first platform to allow Americans to invest in Bitcoin and other digital currencies from their retirement accounts. It provides a platform to link investors interested in alternative asset IRAs with well-known custodians and cryptocurrency exchanges. It works with US-based custodians and exchanges that follow stringent US security protocols.

Apart from buying and selling crypto, Bitcoin IRA provides a user-friendly platform with many features, including live price tracking, portfolio performance, videos, education, and much more. Also, users can swap any cryptocurrency online in real-time using Bitcoin IRA’s proprietary self-trading platform instead of converting to fiat currency and back to cryptocurrency, which can cause exchange costs.

This feature removes the multi-day settlement periods between buying and selling using a unique combination of technology and API integrations with Bitcoin IRA’s OTC liquidity partner. Swapping enables users to exit and enter positions immediately, allowing them to capitalize on market fluctuations.

Bitcoin IRA is best for

  • Superior customer service: If you have any questions or concerns, Bitcoin IRA is there to help you along the way. The friendly customer service representatives are very quick to answer (within 1 business day) and take into consideration any question you may have, even if you think it may not sound qualified.
  • Unmatched security: The platform uses industry-standard multi-signature (P2SH) for security and HD (BIP32) for financial privacy.
  • Earning interest: Bitcoin IRA users can also lend out their cryptocurrency to earn interest. Eligible assets include cash, Bitcoin, and Ethereum. According to the Bitcoin IRA website, you can earn as much as 6% interest on your crypto and cash. Earnings are accrued daily and paid out monthly.
  • Tax-free cryptocurrency investing: Bitcoin profits are generally taxed just like profits from trading stocks. But when you trade with Bitcoin IRA, you don’t have to worry about taxes since gains are tax-free or tax-deferred. With a Traditional IRA, contributions are tax-free, and taxes are deferred on gains. With a Roth IRA, contributions from earned income have already been taxed. Gains are tax-free in a Roth IRA. Given the volatility of most cryptocurrencies, they are often held for less than a year, generating higher short-term gains in the process – trading in IRAs shelter those capital gains from taxes and maximizes the returns.

Bitcoin IRA benefits

  • First Bitcoin retirement company: With 100,000+ users and 2,500 5-star reviews, they are the pioneers of enabling people to add cryptocurrencies into their IRAs.
  • Recurring contributions and automatic investing: People who have room in their budget for monthly contributions can enroll in a new Saver IRA account as low as a $100 minimum deposit. All you need is to link your bank accounts and set them up to deposit funds automatically.
  • Diversified investment options: Bitcoin IRA offers a retirement account to invest in commodities, such as gold. Therefore, it is also suitable for investors who can tolerate risk and rewards associated with trading crypto and physical gold investments.
  • Secure digital wallet: A BitGo digital wallet is provided for securely storing your cryptos.
  • 24/7 trading: Bitcoin IRA allows you to buy and sell cryptocurrency at any time, day and night, on its self-directed trading platform.
  • Custody insurance: Assets are insured up to $100M with BitGo Trust and Lloyd’s of London. BitGo Trust is the largest processor of chain Bitcoin transactions.
  • 100% offline storage: Assets are also stored offline in 100% cold storage technology, in bank-grade class 3 vaults for greater security. BitGo Trust storage has a SOC 2, Type 2 rating.
  • No complicated LLC required: You don’t need to create a complicated and time-consuming LLC to open a Bitcoin IRA. Bitcoin IRA offers a turnkey solution that does the work for you.

Bitcoin IRA drawbacks 

  • Modest fees: Bitcoin IRA charges platform transactional and annual fees. Bitcoin IRA is full-service, comes with high security, and exceptional customer support, so you can maintain a sense of assurance that your money will be safe.
  • Limited financial advisory: This platform is self-directed, with limited financial advisory.

Factors contributing to the overall rating

Account opening 

5

Getting started with Bitcoin IRA is simple, with the following three steps:

  • Create an account in just under 3 minutes from the website, which will give you access to a customized dashboard and digital wallet. After this, you can fund your account, access live pricing, and learn more about crypto with tutorial videos, infographics, and articles.
  • Transfer funds: Using the dashboard, you can add your profile information, specify how much you want to invest, and how you want to fund your account. You’ll be ready to trade quickly, usually in just 3 to 5 business days.
  • Start trading 24/7 in real-time: Once your account is funded, you can trade digital assets inside your self-directed retirement account using Bitcoin IRA’s proprietary platform.

Deposits and withdrawals 

5

To make a deposit, you can rollover funds from an existing IRA, Roth IRA, SEP-IRA, SIMPLE IRA, 403b, or 401k into a self-directed Bitcoin IRA account. For new savers, you can link your savings or checking accounts to make automatic monthly recurring contributions.

Spending or withdrawing the funds from any IRA account before you reach the retirement age of 59.5 will result in early withdrawal penalties. IRA accounts are meant to be withdrawn after you retire. 

Fees 

4

Bitcoin IRA charges a one-time service fee to facilitates the process for account set up, rollover of funds from an existing IRA custodian, execution of a live trade, and moving funds to a secure digital wallet for all retirement account types as follows:

Initial Investment5-year holdTotal
$3,000 – $49,9992.5%2.5%
$50,000 – $99,9992.0%10.00%
$100,000+1.5%7.5%

The service fee also ensures the safety of your transaction and complete IRS compliance and depends on the amount of initial investment. It is also front-loaded based on an estimated hold of 5 years.

Bitcoin IRA also has an annual custodial fee of $240, trade fees of 1% per transaction for sell orders, and 5% per transaction for buy orders.

Trading platform

5

Trading is undertaken within the Bitcoin IRA self-directed web app. This secure trading portal is accompanied by a sleek control panel that allows you to track live pricing and your portfolio easily.

Markets and products

5
  • Bitcoin IRA and Bitcoin 401k: Since Bitcoin can be exchanged for dollars or other currencies, it can be used in place of dollars or other currencies to make investments and fund your IRA. The process for transferring a 401K, Roth IRA, or a Traditional IRA into a Bitcoin IRA requires turning your retirement account into a self-directed IRA, and Bitcoin IRA manages this process for you.
  • IRA Earn: This allows you to earn up to 6% interest on your retirement holdings. When you sign up for this program, you are loaning your asses out to Bitcoin IRA’s leading provider. The provider then lends out your funds to vetted institutional borrowers, and you earn from the loans’ interest. This program’s features include flexible terms, daily earnings, monthly payments, and low minimums.
  • Saver IRA: This product lets you make monthly recurring contributions, which it automatically invests in cryptocurrencies you selected.
  • Cryptocurrencies: It allows you to purchase and sell cryptocurrencies, including Bitcoin, Ethereum, Litecoin, physical gold, and more for your retirement account.

Customer service

5

Bitcoin IRA offers full phone support (866-374-1530) and email ([email protected]).

Education

5

Bitcoin IRA has a dedicated crypto knowledge center on its website with live cryptocurrency price charts, videos and webinars, eBooks, press, and other educational materials. The material covers a wide range of topics, including information on how to self-trade, among others.

Safe and secure

5

To ensure your security, Bitcoin IRA stores digital assets with its partner BitGo. BitGo is the world’s largest processor of Bitcoin transactions, processing over 20% of all global transactions and more than 15 billion per month across all cryptocurrencies. Bitcoin also offers $100M custody insurance, 100% offline cold storage of digital assets, and SSL secure trading. More specifically:

  • BitGo digital wallet uses industry-standard multi-signature (P2SH) for security and HD (BIP32) for financial privacy.
  • The web app is secured with 256-bit encrypted SSL certification.
  • Digital assets are placed offline in segregated cold storage accounts at BitGo trust, a
  • US-Based Qualified Custodian.

Is Bitcoin IRA right for you?

Bitcoin IRA is right for anyone who trades cryptocurrency frequently or even just wants to hold without incurring taxes or prefers to defer taxes. They will take care of all the hard work for you, setting you up to start buying and selling cryptocurrencies including Bitcoin and Ethereum on their convenient self-directed trading platform. Whether you are an experienced crypto investor or just getting started, it provides an easy-to-use platform that ensures your financial security.