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What Do You Need to Know About Investing in Bitcoin IRAs?

If there’s one type of investment to start making a priority in your portfolio, then it’s cryptocurrency. This financial pathway has become one of the fastest growing ways to make money in the market. For instance, CNBC reports that bitcoin’s price hit an all-time high of $68,000 in November 2021. The crypto market itself has also surpassed $3 trillion. While there is no definitive way to know which investments will continue to skyrocket, experts project good things for cryptocurrency investors.

Anyone can invest in cryptocurrency and take advantage of the growing market. Specifically, through Bitcoin IRAs, which you can sign up for with a search online.

Here’s a rundown of Bitcoin IRAs and how to get started.

Bitcoin IRA Basics

Those planning their financial future and retirement will want to look into an IRA, which is also known as self-directed individual retirement accounts. There are different types of IRAs to invest in such as real estate or precious metals. Cryptocurrency IRAs are also an option, but Forbes explains how the way it works is a bit less conventional.

The main difference between a normal IRA and a Bitcoin IRA is that you’re investing money in cryptocurrency rather than mutual fund shares. Both accounts have the same contribution limits and allow you to benefit from tax advantages. Currently, the contribution limits for people under 50 are $6,000 and those 50 and over have a limit of $7,000.

One benefit to investing in cryptocurrency is diversifying your portfolio. Forbes says that having a diverse portfolio not entirely correlated with stocks and bonds can help protect your retirement balance. Of course, investing in cryptocurrency doesn’t come without its own volatility. It’s considered a high risk investment — but that also means there is potential to reap high returns.

How Bitcoin IRAs Are Taxed

There are two ways that IRAs are taxed. Your IRA earnings will either be tax-free or tax-deferred. It ultimately depends on the type of self-directed account you have.

Anyone who contributes to a traditional crypto IRA deduct their annual contributions from their taxable income. This means they are not obligated to pay income taxes on their earnings until they withdraw their assets. If someone withdraws the funds early, they receive a penalty and tax payment.
With Roth IRAs, there is no tax deduction for contributions. Any withdrawals you make during retirement are tax-free because the payment is made up front. This is good for people who want to make tax-free withdrawals in the future.

Keep in mind that someone who sells or trades their cryptocurrencies and makes a profit must pay taxes to the government. This is because they are treated similarly to stocks for evaluating tax liabilities. Alternatively, cryptocurrencies sold at a loss may have that amount deducted from the taxpayer’s tax liability.

Best Bitcoin IRAs

Bitcoin IRA

Minimum Investment: $3,000
Annual Maintenance Fee: $240

As the first and largest cryptocurrency platform in the world, Bitcoin IRA is a reliable choice. You can buy and sell crypto 24/7 in real time, track prices, and keep tabs on your portfolio performance. Plus, you can now earn up to six percent interest payouts on the cash and crypto inside your retirement account.


Minimum Investment: $5,000
Annual Maintenance Fee: $195

Those who want to make security a priority when opening a Bitcoin IRA will like what BitIRA has to offer.

Every transaction is confirmed using a peer-to-peer protocol on a blockchain network. This level of security helps protect against hackers, damage, embezzlement, and other threats that put your retirement savings at risk. You can also rest easy knowing your digital currency is insured from transit to storage.

Coin IRA

Minimum Investment: $20,000
Annual Maintenance Fee: $195

Coin IRA provides a user-friendly experience for those wanting to diversify their portfolio with cryptocurrency. Your assets will be secure with military-grade encryption, there is protection against price inflation, and you can speak to experts whenever you’re in need of assistance.

Coin IRA also offers trader-assisted transactions during extended trading hours.


Minimum Investment: $10,000
Annual Maintenance Fee: $195

If you’re interested in having someone else manage your crypto account, look no further than BlockMint. This platform saves you the hassle of performing your own bitcoin transactions and working alongside an Account Executive to help you out. They can assist with your initial purchase and other actions you’d like to take with your investments going forward.


Minimum Investment: $1,000
Annual Maintenance Fee: $0

One of the most affordable options to get you started in crypto investments is iTrustCapital. This platform offers users low costs that can save you money. There are no setup fees, no monthly fees, and transaction fees are locked at just one percent.

With iTrustCapital, you can invest in 25 different cryptocurrencies to help diversify your retirement portfolio.

Learn More About Bitcoin IRAs Online

If you’ve already begun investing in your retirement, it might be beneficial to look into cryptocurrency. Adding crypto to your portfolio can help diversify your portfolio and potentially help you reach financial goals sooner. All you have to do is open a Bitcoin IRA to get started.

With so many different platforms to choose from, make sure to do some research. Compare what each platform has to offer, as well as the related costs. Look into the minimum investment required to open an account, whether there is an annual maintenance fee, transaction fees, and more. Knowing this information will help you choose a Bitcoin IRA that’s best for you.

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