The potential for cryptocurrency to disrupt the way we invest has led many people to consider adding it to their retirement portfolio. It’s not a new idea, but in recent years the craze around crypto has taken on a life of its own. The market is volatile, and many new investors are worried about taking the leap and putting their money into digital tokens that few people understand.
For those willing to take that risk and others who want to learn more about it, there are now companies offering self-directed IRAs that allow you to invest in cryptocurrencies like Bitcoin or Ethereum. But before you dive in, you need to make sure you have all your ducks in a row before making an investment decision. Here is why you should consider setting up an IRA and what investing in crypto via an IRA will do for your retirement savings account.
What is a Self-Directed IRA?
An Individual Retirement Account (IRA) is a retirement savings account that holds assets such as stocks, real estate, or other investments that have a long-term payoff. The advantage of an IRA is that you can deduct your contributions from your taxable income, and you don’t have to pay taxes on the earnings inside the account until you withdraw them. Banks, investment firms, and other financial services companies offer IRAs.
What makes a self-directed IRA so appealing is that you get to choose what you invest in. You can select any asset that is permitted by the IRS and is not a prohibited transaction under ERISA law.
How Does a Crypto IRA Work?
An IRA is a savings account that is intended to be used to fund your future retirement years. People of all ages can open an IRA. There are two main types of IRAs: The traditional IRA (which comes with certain tax benefits) and a Roth IRA (which comes with different but also valuable tax benefits). You’ll want to decide which one is best for you based on your current financial situation and goals related to retirement. If you choose to open a self-directed IRA, you’ll have the freedom to invest your funds in any type of asset you choose, including cryptocurrencies.
However, keep in mind that there are some regulations that come with this type of account. In order to make sure you stay compliant with tax laws, your self-directed IRA account will have to be handled by a financial institution that specializes in handling retirement funds. This is why you’ll need to open a self-directed IRA rather than a regular (traditional or Roth) IRA.
Why Invest in Cryptocurrencies with an IRA?
As mentioned earlier, most financial advisers recommend that you stick with traditional assets like stocks and bonds for your retirement account. They argue that cryptocurrencies are too risky and that investing in them is a bad idea. They also say that you can’t use a self-directed IRA to make risky investments like this one. Well, the good news is that many of these advisers are now saying that you can use a self-directed IRA to make cryptocurrency investments.
They’ve changed their tune because the market for cryptocurrencies has proven to be much more robust than many people predicted. The cryptocurrencies that people are most excited about are those that solve real problems. They are also commodities that can be traded on exchanges and have a long-term potential to increase in value.
Which Are the Best Crypto IRA Companies?
The cryptocurrency market is booming, and investors are taking note. In fact, many are flocking to the world of digital money to try and get in on the action while they still can. However, with countless companies launching new investment products related to cryptocurrencies every day, it can be hard to know which ones are worth your time and money. Luckily, there are plenty of great options out there for people who want to invest a portion of their retirement fund in crypto but don’t know where to start.
The majority of these investment services offer some type of self-directed IRA account as one of their primary services. In this article, we’ll discuss what an IRA is, why you should consider opening a self-directed one if you plan on investing in cryptocurrency as part of your retirement strategy, and which companies stand out as being among the best when it comes to a crypto IRA company.
8 Best Crypto IRA Companies
The cryptocurrency market has a lot of risks, but also a lot of potentials. If you’re investing in crypto assets through an IRA or other tax-advantaged retirement account, you can mitigate some of the risks while also getting a major tax break in the process. If you’ve been researching ways to invest your retirement savings in crypto assets while also having those investments be eligible for a tax deduction, then Crypto IRA companies are worth looking into. These financial services firms help you create a self-directed IRA in which you can invest in cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
Once you open a Crypto IRA, it functions just like any other type of IRA — putting money into it on a pre-tax basis and withdrawing from it on a post-tax basis once you meet the necessary age and other qualifications for taking distributions.
The first Crypto IRA company on this list is Bitcoin IRA, whose motto is “Invest in Yourself.” Founded in 2015, Bitcoin IRA is one of the most established Crypto IRA companies in the industry, and it has built its business model around the idea that “cryptocurrencies are the smart asset play of the 21st century.” This company is headquartered in California and has a team of financial experts and cryptocurrency specialists who work with clients to create a custom investment plan based on their individual goals, risk tolerance, and investment experience. Moreover, Bitcoin IRA offers “lifetime management” services, which means that once you sign on with this company, you’ll be able to maintain your investment over the long haul, no matter how the crypto markets evolve.
Another one of the leading Crypto IRA providers is Coin IRA, which is headquartered in Irvine, California. Coin IRA also has a robust online presence, with a website featuring extensive information about the ins and outs of investing in a Crypto IRA. In addition, coin IRA offers its services to investors across the U.S., including those living in New York, New Jersey, and Connecticut.
Gold IRA Company
Another reputable Crypto IRA firm is the Gold IRA Company, which also has an office in California. The company offers a range of financial services geared toward helping investors diversify their retirement savings through the use of an IRA. Investors can put their money into precious metals like gold, silver, and platinum with a Gold IRA. While these metals do not have the same kind of buzz around them as cryptocurrencies do, they are a more stable investment and are typically not as heavily affected by swings in the market.
IRA Financial Group
Headquartered in San Diego, California, the IRA Financial Group is a leading investment advisory firm that has helped thousands of investors diversify their retirement savings. Since 2002, this company has been helping people invest in a range of asset classes, including real estate, stocks, and cryptocurrencies like Bitcoin, Ethereum, Ripple, and Litecoin. In addition, for those looking to invest in a Crypto IRA, the IRA Financial Group offers self-directed IRAs.
My Crypto IRA
My Crypto IRA is a service offered by the Keystone Wealth Group, a financial advisory firm based in Fort Lauderdale, Florida. The Keystone Wealth Group has helped thousands of people invest their retirement savings in a Crypto IRA. My Crypto IRA allows investors to purchase and store their cryptocurrencies through a secure online platform. The company also provides paper wallets, offline hardware wallets, and other storage options. My Crypto IRA offers a range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Ripple, and more. Investors can set up a one-time transfer from their existing IRA or 401(k) account, or they can set up a recurring transfer if they prefer to have their investments deposited every month. Unlike many other Crypto IRAs on the market, My Crypto IRA does not charge any upfront fees. In addition, it does not charge any exit fees if you decide to transfer your retirement savings back to your original IRA or 401(k) account.
Nutshell is a Crypto IRA company based in Irvine, California. Founded in 2017, Nutshell was built with the goal of making it easier for people to invest in cryptocurrencies through an IRA. Nutshell partners with a range of custodians to help investors safely store their cryptocurrencies. This company also provides digital wallets, paper wallets, and offline wallets for storing digital assets. Nutshell is unique because it offers a passive investment option for people who want to invest in cryptocurrencies but don’t want to watch the market actively. With Nutshell’s smart asset allocation model, customers can automatically diversify their retirement accounts with a single click.
Regal Assets is a Crypto IRA company based in Beverly Hills, California. Founded in 2012, Regal Assets specializes in helping people invest their retirement savings through self-directed IRAs. This company offers a range of cryptocurrencies to choose from, including Bitcoin, Ethereum, Ripple, Litecoin, Stellar, and Zcash. All of these currencies can be purchased through Regal Assets and stored securely through the company’s Crypto Secure Vault. Customers can choose to have their assets stored in a physical vault in Zurich, Switzerland, or have them registered on the Blockchain with a Digital Asset Contract. Regal Assets offers a wide range of investment options through IRAs, including stocks, bonds, mutual funds, real estate, and, now, cryptocurrencies. The company prides itself on its personalized service, which helps customers choose the best investment option for their retirement goals.
Last but not least on this list is Bit IRA, a Crypto IRA company based in Irvine, California. Founded in 2018, Bit IRA specializes in helping people invest in cryptocurrencies through self-directed IRAs. Bit IRA partners with a range of custodians who store investors’ cryptocurrencies safely. This company also provides digital wallets, paper wallets, and offline wallets for storing digital assets. Furthermore, Bit IRA offers a variety of cryptocurrency IRAs, including Bitcoin IRAs, Ethereum IRAs, Ripple IRAs, and Litecoin IRAs. Customers can open a new IRA or transfer an existing IRA to Bit IRA to open a new cryptocurrency IRA. If you choose to open a new cryptocurrency IRA, Bit IRA will help you transfer your funds from a traditional IRA provider to its platform. After the transfer, Bit IRA will enable you to purchase a range of cryptocurrencies for your IRA through a self-directed IRA.
How to Set Up a Self-Directed IRA to Invest in Crypto?
Setting up a self-directed IRA to invest in cryptocurrencies is a fairly straightforward process, but you will have to find a financial institution that offers this option. IRAs are often managed by banks and large financial institutions that have special departments that are dedicated to handling retirement accounts. Before you commit to any one company, you should do some research and figure out which ones offer this service.
You will also need to make sure that the company you choose has a license to work with IRAs. Once you’ve found a firm that is willing to work with your retirement account and provide you with the crypto investment option you want, you will need to open an account and fund it. You can do this with a standard IRA contribution or with a rollover from an existing IRA account.
How to Choose the Right Company for Your IRA?
When choosing a company for your IRA, you should first consider how much money you want to invest. This will help you narrow down your options and make it easier to find a company that offers investment packages that are large enough to accommodate the amount of money you want to invest.
You should also consider your risk tolerance. Some companies specialize in higher-risk investments while others focus on lower-risk ones. You can use this information to help you choose a company that matches your risk tolerance so that you have a better shot at enjoying a positive investment outcome. You should also consider how comfortable you are with using technology.
If you aren’t very tech-savvy, you may want to choose a company that is easier to use and understand. All of these factors can help you find the best company for your IRA from the get-go.
Is a Crypto IRA Right for You?
As you can see from this article, there are plenty of reasons you might want to add cryptocurrency to your retirement portfolio. The only real question is how you will go about doing it. A self-directed IRA is the best way to make this happen, especially if you want to invest in something other than Bitcoin. When all is said and done, there is no right or wrong decision here. The only mistake you can make is not taking action. If you want to see your retirement savings account grow, you have to be willing to put money into it.
Investing a portion of your retirement fund in cryptocurrencies is an increasingly common strategy, but it can be difficult to know where to start. Fortunately, there are now many great options for people who want to open a crypto IRA. When choosing a company, you should first consider how much money you want to invest, your risk tolerance, and how comfortable you are with using technology. These factors will help you find the best company for your IRA from the get-go.