Thanks for visiting our crypto IRA guide. In this guide, you will learn why you should invest in a crypto IRA, also called a Bitcoin IRA or Digital IRA, and how it can help the value of your retirement savings to skyrocket.
If you want to jump straight to any of the sections, you can use the guide below:
Alright, let’s dive into the nitty-gritty of what a crypto IRA is and how this incredible asset class can help grow your wealth next.
A crypto IRA also called a Bitcoin IRA or Digital IRA is a self-directed IRA, which allows you to include Bitcoin and various cryptocurrencies in a single retirement portfolio, while simultaneously reaping the tax benefits that are commonly associated with retirement accounts.
In a standard Individual Retirement Account (IRA), individuals can keep their investments in traditional securities like stocks, bonds, and money market funds.
But in a crypto IRA, you can hold various alternative assets, such as precious metals, real estate, and more.
Additionally, certain companies like Regal Assets also allow you to combine cryptocurrencies and precious metals.
War, soaring inflation, increasing gas prices, and interest rate hikes are all hitting the wallets of everyday Americans and millions are watching their retirement savings disappear as the stock market continues to take a nosedive.
And as one of the top-performing assets since the last financial crisis, cryptocurrencies like Bitcoin, Ethereum, Solana, etc., could help the value of your retirement savings to skyrocket.
Right now, there is also a great opportunity to buy on a dip!
Starting a crypto IRA or digital IRA is as easy as 1-2-3.
In fact, you can even rollover or transfer your existing IRA or eligible employer-sponsored account, such as a 401(k) into a crypto IRA account.
Cryptocurrency is an alternative asset that adds diversification to any investor’s portfolio and can serve as an inflation hedge. And with the increasing inflation rate (8.5% as of today), you need to move your money to assets not governed by the dollar.
Typically, both cryptocurrency and precious metals move in the opposite direction of the dollar and will protect your hard-earned retirement savings from dollar depreciation.
A crypto IRA allows you to protect and grow your savings with a plethora of different assets 100% tax and penalty-free.
By using a secret IRS loophole, you can legally add cryptocurrencies and other highly reliable assets such as precious metals, real estate, and more to your retirement savings completely tax-free.
A crypto IRA is a great investment because conventional IRAs based on stocks, bonds, and mutual funds are highly vulnerable in the case of a stock market crash or rising inflation.
But when investing in a crypto IRA, you will not only protect your retirement savings against a possible stock market crash or inflation, but you will also add diversification to your portfolio and strengthen its value.
The fact that crypto IRAs remove central banks from managing the money supply is a critical aspect of hedging your savings. Over time, these banks tend to reduce the value of money via inflation.
But a crypto IRA offers you tax-free growth, meaning that as long as you do not make any withdrawals from your retirement account, any gains made by the tokens held within it are tax-deferred.
Yes, when investing in a crypto IRA or digital IRA, your account is covered by custodians who manage self-directed accounts.
An IRA custodian is a financial institution that holds your account’s investments for safekeeping and sees to it that all IRS and government regulations are adhered to at all times.
Specifically, the custodian could be a bank, credit union, trust, or another company called a non-bank custodian.
But you need to know what company to choose that has your best investment needs in mind and will ensure your assets are safely stored and protected.
To make the selection process easier for you, we have reviewed crypto IRA companies and listed our two best options:
The Company was founded in 2017 and was one of the first companies in the US to allow investors to add cryptocurrency to their 401(k)’s and similar retirement accounts.
It quickly became one of the nation’s leaders, focusing on helping people diversify their assets and skyrocket their wealth.
Unlike many other crypto IRA providers, BitIRA works with the most reputable and non-hackable IRA custodians to keep your assets safe and secure.
In addition, BitIRA also developed a non-IRA offering in January of 2018, enabling investors to trade cryptocurrency within their crypto portfolio.
Whether you’re a beginner in cryptocurrency and want to roll over an underperforming 401(k) account, or an experienced investor not wanting to miss out on the tremendous growth potential of crypto, BitIRA will help you with all your investment needs.
With BitIRA, you can have peace of mind that your cryptocurrency will be safely secured at all times while helping your assets grow in value.
Regal Assets is another prominent alternative asset IRA company that was founded in 2009.
Regal Assets has partnered up with various leading companies and custodians in the alternative investment space to create a truly unique retirement account—Regal IRA.
Regal Assets has combined the must-have precious metals with alternative assets, such as cryptocurrencies to take portfolio diversification to another level.
With a Regal IRA, you can protect yourself against the ebbs and flows of investing.
The Regal IRA gives you the option to include the following in your IRA:
Investing in precious metals and cryptocurrencies through an IRA has to be done in accordance with the IRS rules and regulations, which is why it is important to work with a company that has a good track record working with these types of accounts.
Simple mistakes, like not buying the correct coins that are approved for IRAs or providing incorrect tax documents can cost a lot of money in the long run.
That said, you can open a Coin IRA or Regal IRA directly, or you can rollover or transfer funds from a previous retirement account into a new crypto IRA account.
If this just felt like the tip of the iceberg, and you want more information, we recommend that you read our in-depth reviews of BitIRA’s sister company Birch Gold Group and Regal Assets and their IRA concepts, ratings and complaints, fees, and more.
On a final note, gold, Bitcoin, and other cryptocurrency make a perfect combination of assets because they balance each other out. As one goes up in value, the other tends to go down.
That way, you are not only diversifying your assets, but you are diversifying smartly!
Yes. The value of cryptocurrency, gold, and silver generally move in the opposite direction of paper assets, and will, therefore, provide a good hedge against inflation. The weaker the dollar becomes, the better these assets perform. For instance, the relationship between gold, Bitcoin, and the dollar is often seen as an inverse one. A weaker dollar normally results in higher gold and crypto prices, while a stronger dollar results in the opposite.
Traditional IRA accounts may not be enough to provide for you and your loved ones post-retirement. Not if the economy continues spiraling out of control at this magnitude. Investors need diversification, security, and protection of their wealth. A crypto IRA allows individuals to diversify any portion of their retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — by actually owning cryptocurrencies and precious metals within that retirement plan. Investors can securely possess physical precious metals and digital assets in a tax-deferred account.
It’s recommended to use pre-selected IRA custodians. Both Coin IRA and Regal Assets work with the most reputable IRA custodians to keep your assets safe and secure.
Non-IRA cryptocurrencies, yes. Not cryptocurrency for an actual IRA. IRS rules forbid storing them yourself since they must be held by an approved non-bank trustee or a bank within IRS guidelines. In other words, just like a traditional IRA, the access to the cryptocurrencies in your crypto IRA must be restricted in specific ways to ensure deposit and disbursement laws are followed.
No. Like all investments, the future value of cryptocurrency is not guaranteed and can rise or fall based on a variety of market influences.
At age 59½, you or the beneficiary of your Regal IRA can start taking penalty-free distributions from the account, according to the IRS.
Usually around 2 weeks. Although each application is different and the amount of time varies on a case-by-case basis.
For over a decade, our mission has been to provide investors and retirees with all the information they need when it comes to precious metals and cryptocurrency investing.
Not only do we provide a complete guide on the best ways to invest in precious metals, but we have also carefully vetted the best precious metals companies in the US to help you choose the best provider for your investment needs.
We believe that investing in precious metals and cryptocurrencies through your 401(k)/IRA is one of the best ways to invest in this asset class, due to the tax-saving component. A gold IRA or crypto IRA is the best way to protect your retirement account against an unstable market.
Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase. Learn more in our Terms of Service.