Bitcoin IRA is a self-directed trading platform that allows you to purchase and sell cryptocurrencies and gold from the comfort of your own home (IRA). The program allows users to transfer existing retirement assets into a self-directed crypto IRA, which allows you to trade a restricted number of cryptocurrencies on a US-based exchange.
Check out our whole Bitcoin IRA Review to see if the platform is perfect for you.
Watch the below video on Bitcoin IRA Review:
* Tax-deferred cryptocurrency investment
* Low-cost gold investment
* Interest-bearing account
* Full-service IRA rollover
* U.S. regulated
* Expensive fees
* Fee transparency
* No cryptocurrency purchases
* Limited virtual currency selection
* Limited liquidity
Bitcoin IRA Review
Investing in cryptocurrency that is tax-deferred
Your Bitcoin IRA account allows you to make long-term investments in alternative assets of your choice without paying taxes on capital gains or dividends because it is a self-directed IRA.
Your contributions are tax deductible in the year you make them, just like in a regular IRA, and you only pay taxes when you withdraw them. If you take money out of your account before you retire, you may face a penalty.
Gold investing at a low cost
You can buy gold with Bitcoin IRA in addition to digital currency. The fees and method are the same as for crypto investing, but you’re purchasing ownership rights to physical gold bars instead of currency.
The leading security business Brink’s holds Bitcoin IRA gold bars in bullion vault facilities — yep, the same Brink’s that owns the trucks you see moving around your city. The New York State Department of Financial Services regulates the assets.
The Bitcoin IRA eliminates a lot of the brokerage and storage fees that come with buying gold. As a result, you’ll pay lesser costs, with the same structure as crypto investments.
Account that pays interest
You might receive income on the cash, Bitcoin, and Ethereum in your Bitcoin IRA account through its IRA Earn program, in addition to the potential long-term growth of your IRA.
* Cash: 6% Annual Percentage Yield
* Bitcoin: 2% Annual Percentage Yield
* Ethereum: 2.75% Annual Percentage Yield
To earn interest, your account must have at least $10,000 in value per coin. You must enroll in the program and pay a $100 enrollment fee as well as a $100 termination fee.
What could be better?
Fees that are too high
In addition to ongoing custodian fees, Bitcoin IRA charges a platform fee on the original deposit as well as future trades. These fees are common for bitcoin IRA accounts, but before you open one, think about whether they make sense. The fees are discussed in greater depth in the section below.
There will be no cryptocurrency purchases.
Cryptocurrency holdings cannot be transferred into an IRA due to IRS limitations. Even if you’re buying into a cryptocurrency account, the IRS requires you to invest into your IRA with US dollars.
This is an IRS rule that applies to any crypto-based retirement plan, not just Bitcoin IRAs.
a limited number of cryptos
Only nine cryptocurrencies are available for investment in the Bitcoin IRA. Top coins, such as Bitcoin and Ethereum, are accessible for purchase, but this isn’t the site for you if you want to buy a wider range of altcoins.
It does, however, let you to invest in gold, which isn’t available on every cryptocurrency platform.
Investing in any sort of retirement account reduces your assets’ liquidity, or your capacity to withdraw and spend money as needed.
This does not mean that your savings will be locked in a Bitcoin IRA permanently; you can transfer your cash to another retirement account at any time, just like any other retirement account. However, transferring your retirement investment from crypto to the standard stock market exposes you to the risk of a substantial drop in value, which you won’t see with a traditional IRA.
You’ll also be subject to tax fines and costs if you take money out of your account for reasons other than retirement savings.
Alternatives to think about
Coinbase is the largest and most popular cryptocurrency exchange if you don’t want to invest in an IRA account and want to save money. It offers a diverse range of cryptocurrencies as well as an unrivaled feature set on its platform.
If you’re looking for a more flexible crypto trading platform and discounts, consider the following: Beginners may find BlockFi to be an excellent bitcoin exchange. It provides a cryptocurrency exchange as well as an interest-bearing account with higher liquidity than an IRA and higher interest rates on some currencies.