Bitcoin IRA Review: Why Investing in Crypto & Gold Pros and Cons

Bitcoin IRA Review: Tax-Deferred Investing in Crypto & Gold

Bitcoin IRA is a self-directed trading platform that allows you to purchase and sell bitcoins from the comfort of your own home, all while preserving the tax benefits of your individual retirement account (IRA). The program allows you to transfer over current retirement assets into a crypto IRA and even invest in gold. While this method might save you money on taxes, it comes with high account fees. Read our complete Bitcoin IRA review to see if it's a good way to save for retirement.
Complete Bitcoin IRA Review
This bitcoin IRA is ideal for: Investors who wish to add cryptocurrencies to their retirement assets while benefiting from the tax advantages of an IRA.

Pros	Cons
Tax-deferred crypto investing	Expensive fees
U.S. regulated	No crypto deposits
Full-service IRA rollover
Gold investing
Educational content
Large selection of cryptocurrencies

Bitcoin IRA Tax-deferred crypto investing

Because it is a self-directed IRA, Bitcoin IRA offers tax advantages over purchasing cryptocurrency through a broker or crypto exchange. Contributions to a conventional IRA, like any other, are tax deductible in the year they are made. Only when you remove funds will you have to pay taxes.

Just keep in mind that such tax benefits come at the expense of some flexibility. Because an IRA is a retirement account, withdrawals taken before the age of 59 1/2 are subject to early withdrawal penalties and income taxes.

Looking for other alternative assets? Take a look at The Ascent's Rocket Dollar Review.

Investing in Gold

Aside from digital currencies, you may also purchase gold using a Bitcoin IRA. The pricing and purchasing procedure are the same as with cryptocurrency, with the exception that you are purchasing ownership rights to actual gold bars.

This is one of the quickest and easiest methods to buy in gold, especially because you won't have to pay expensive storage costs like other gold brokers. Bitcoin IRA gold is stored in Brink's bullion vaults, which are also insured.

MORE INFO: How to Invest in Gold

Buying your first stocks: Do it wisely.

After selecting one of our top-rated brokers, you must ensure that you are purchasing the correct stocks. We believe there is no better place to begin than with Stock Advisor, The Motley Fool's premier stock-picking service. Every month, you'll receive two new stock selections, as well as 10 beginner stocks and top buys right now. Over the last 21 years, Stock Advisor's average stock choice has returned 492% – more than three times the S&P 500! (as of 7/10/2023). Learn more and get started right now with a new member discount.

What might be done better?
Expensive charges

Bitcoin IRA charges a set-up fee of 2% on your initial deposit, as well as 2% each trade. These costs are standard for crypto IRA accounts, although they are much more than those charged by cryptocurrency exchanges. Exchanges do not often charge a set-up cost, and many levy transaction fees of 0.5% or less each trade.

CHECK OUT OUR TOP SELECTION: Best Cryptocurrency Apps and Exchanges

Inadequate fee transparency

Bitcoin IRA does not disclose a charge split up front. It instead invites you to contact and speak with a representative. You may also email Bitcoin IRA or utilise its chat tool to inquire about its costs.

It's infuriating because Bitcoin IRA requires you to jump through hoops to find out how much it charges. There are plenty of other cryptocurrency platforms that give thorough information on their costs online, so there's really no justification not to.

There are no cryptocurrency deposits.

You cannot deposit cryptocurrencies into an IRA due to IRS limitations. Even though it's a crypto IRA, you can only fund it with US dollars. This rule applies to any crypto-based retirement plan, not only Bitcoin IRAs.

Alternatives to check 

If you want to save money on fees, do the following: Coinbase is one of the world's most prominent bitcoin exchanges. It has lower costs when using its advanced trading option, making it significantly less expensive than Bitcoin IRA. This exchange also includes a robust platform with instructional content and revenue-generating programmes.

If you want a more adaptive investment platform, Robinhood allows you to maintain your stocks, ETFs, and cryptocurrency all in one spot. The popular stock trading software and investment platform is simple to use and offers commission-free trading.

How Does a Bitcoin IRA Account Work?

Bitcoin IRA, as the name implies, is a self-directed retirement account that allows you to invest in cryptocurrencies. It also provides gold.

A new Bitcoin IRA account requires a $3,000 minimum commitment. You may either roll it over from an existing IRA, 401(k), or 403(b) fund or make a cash contribution. However, due to IRS laws, you cannot fund your account with bitcoin assets. All Bitcoin IRA deposits must be made in US dollars.

If you transfer to a retirement account, Bitcoin IRA will complete the transfer within three to five business days. You can begin trading on the site after your account has been funded. Because funds remain in your account inside the platform, you are not subject to capital gains or dividend taxes, and any contributions to the account are tax deductible.

Because your investments are in a retirement account, early withdrawal will result in tax penalties. If you take money from the account before the age of 59 12, you'll have to pay income tax as well as an early withdrawal penalty (typically 10%). You may always sell your holdings and reinvest the proceeds in another IRA.

LEARN MORE ABOUT IRA WITHDRAWALS

Overview of Fees

Bitcoin IRA does not provide specific fee amounts up advance. It claims that there is an initial one-time service cost based on the amount of your investment, as well as a nominal custodian and service fee. It urges potential customers to contact a representative for further information.

When we contacted Bitcoin IRA for a price quotation, we were given the following fee schedule:

• Set-up fees range from 0.99% to 4.99% of the first investment.
• On trades, the transaction charge is 2.00%.
• Maintenance fee: 0.08% of entire monthly account value.

To get fee amounts, establish an account with Bitcoin IRA by clicking the "Open Account" button on this page. You may also get in touch with Bitcoin IRA via:

Email: support@bitcoinira.com Phone: 866-374-1530

Choosing a Cryptocurrency

Bitcoin IRA offers a diverse range of digital assets, particularly for a bitcoin IRA. On Bitcoin IRA, you can buy and trade over 60 cryptocurrencies, so there's a lot more to look at than simply the company's name. Here are a some of its major cryptocurrency offerings:

• BTC (Bitcoin)
• Cardano (ADA) Ethereum (ETH)
• SOL (Solana)
• DOGE (Dogecoin)

Is Bitcoin IRA secure for your cryptocurrency?

Bitcoin IRA is a secure platform for purchasing, selling, and storing cryptocurrencies. The platform prioritises security and has numerous levels of safeguards in place to protect customer assets.

The Bitcoin IRA online app is safeguarded with 256-bit SSL certification. BitGo Trust, a service provided by Bitcoin IRA's custodian, stores digital assets. BitGo is the largest on-chain Bitcoin transaction processor, with over $2 billion in assets.

All Bitcoin IRA cryptocurrency assets are kept offline in cold storage. Because it is not linked to the internet, this sort of crypto storage is the preferred approach for optimum security.

BitGo Trust also has custodial asset insurance for up to $700 million. Lloyd's of London provides insurance.

Bitcoin IRA is the best for you if:

You want to diversify your retirement funds by investing in Bitcoin and other cryptocurrencies.

You want to invest in cryptocurrency without paying taxes.

Volatility in your retirement fund is manageable.