Introduction

Cryptocurrency individual retirement accounts (IRAs) are a type of self-directed individual retirement account (SDIRA) that allow users to buy and sell cryptocurrencies through an exchange in the United States. The internal revenue service (IRS) currently treats cryptocurrencies as property, so they are subject to capital gains taxes when sold. However, these gains can be deferred or even eliminated if held in a Crypto IRA.

The main benefit of crypto IRAs is that you can invest in crypto for your retirement, which you can’t do with regular IRAs. But, along with their volatility, cryptocurrencies’ limited use can be a big turnoff. No matter how much the price increases or decreases, crypto is still not widely used in everyday life. Transaction fees can make the overall blockchain investment less valuable. Also, crypto IRAs aren’t widely used yet, which adds to the monopoly.

In this article, we will discuss the operational structure of an IRA, some important IRA platforms, and their pros and cons, and you will be able to find out the better option for you.

How does an IRA Work?

Anyone with earned income, including 401(k) (retirement saving plan) accounts via their employers, can open and contribute to an IRA. The only restriction is on how much you can collectively contribute to your retirement accounts in a year and still receive tax benefits.

When you start an IRA, you have various financial products, such as mutual funds, exchange-traded funds (ETFs), equities, and bonds. Even better, self-directed IRAs (SDIRAs) allow investors to decide everything and give them access to a broader range of investments, including commodities and real estate.

Traditional IRAs, Roth IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plan for Employees (SIMPLE) IRAs are just a few of the different types of IRAs available. Regarding eligibility, taxation, and withdrawals, each has its own set of regulations. Individual taxpayers can create standard and Roth IRAs and SEP and SIMPLE IRAs for self-employed people and small company owners. An IRA can only be opened at a business permitted by the Internal Revenue Service (IRS) to provide such accounts. Banks, brokerage firms, federally insured credit unions, and savings and loan associations are available.

If you take money out of an IRA before turning 59, there is often a 10% early withdrawal penalty because IRAs are intended for retirement savings. Some significant exceptions include withdrawals for first-time home purchases and educational expenses. You will have to pay income tax on an early withdrawal if your IRA is a regular account rather than a Roth account.

A Domestic IRA

Top 5 Individual Retirement Account (IRA) Platforms

BitcoinIRA

BitcoinIRA offers its services for trading 24/7 and secure storage for digital assets. It deals in more than 60 cryptocurrencies and is slightly different from the other platforms. First, there is no transaction fee, but there is a one-time service fee, a custodian fee, and a security fee. These fees depend on the amount invested and must be asked separately from the support executives. But the fact that you can earn up to 6% interest on your crypto holdings makes this platform worth thinking about.

Bitcoin IRA’s Crypto IRA App

IRA account creation on Bitcoin IRA is straightforward as the process can be done in just a few minutes using its app or web dashboard. After transferring funds, users can begin trading within a week and buy, sell, and trade online. The security of Bitcoin IRA is up to date as the platform offers 256-bit encrypted SSL trading and stores digital assets offline in separate cold storage accounts.

Pros and Cons of Bitcoin IRA

Broad Financial

Broad Financial crypto IRA is a self-directed platform that gives you the freedom to invest from any crypto exchange. You want. It offers you the private keys to your IRA and doesn’t force you to spend a certain amount. You can put money into many different types of assets. It gives you complete control over your checkbook and is based on a flat fee that you can ask for their support.

Broad Financial

Broad Financial offers two different types of accounts – IRA Trust and IRA LLC.

IRA LLC, which is a premium version, offers:

• Traditional and Roth IRAs
• Free customer support
• No asset-based charges
• Free transaction
• Liability protection
• Multi-member ownership
• 1-2 weeks setup time

TradeStation

TradeStation is a one-stop IRA for investing in alternative assets like crypto, stocks, etc., with no crypto custody fee. There is no minimum amount you must hold for IRA. However, TradeStation charges service fees and account cancellation fees based on how much you invest. TradeStation offers:

• 50% off futures brokerage fees when you open a new account
• Trading available across multiple assets
• Competitive pricing with no commissions
• Reliable stock options
• Over 350 futures products, including micro E-mini contracts
• Advanced tools (Individual and joint accounts)

TradeStation

BitTrustIRA

BitTrustIRA is an excellent platform to add crypto to your IRA or 401(K) account. It offers the next level of military-grade security that is usually promised. The cryptocurrencies of BitTrustIRA are stored in decommissioned nuclear bunkers that are 100% cold. These crypto IRAs have no strict limits on how much you can invest. But there is a one-time setup fee of $50 on top of the 5% and 1% charges for buying and selling. Also, there are extra fees like wire transfers, closing an account, etc. As of 2022, BitTrustIRA has assets worth $28B. BitTrustIRA features:

• 24/7 self-trade
• No minimum investment
• Tax-free trade
• Cold storage in nuclear bunkers
• Military-grade encryption
• No hidden fees
• Quality insurance

BitTrustIRA

AltoIRA

The AltoIRA platform allows you to buy more than 150 different crypto coins through Coinbase. It features:

• The simple pricing structure, with only a 1% transaction fee to keep track of
• There are no minimum blockchain investments
• You can’t put money into things that aren’t crypto without a separate IRA
• Covers the transaction fees for Coinbase
• There are no fees to open an account or pay an annual fee
• The only fees are $50 to close an account and $25 for a wire transfer
• Alto has a free service that can help you set up or add money to your Crypto IRA

AltoIRA

The Verdict

Although investment is risky, cryptocurrency investment is an absolute risk. Before investing in crypto, you must know much about the working structure, pricing flow, and market trends. IRA platforms offer very little to save you from a dip in the market. Before opting for an IRA platform, do some research and try to know the working procedure of an IRA platform. Customer reviews and real-time feedback from others can help you find a better IRA platform if you’re interested in investing in crypto.

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