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Bitcoin IRA Review – Custodian, Fees, Customer Reviews & More…

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Bitcoin IRA has been gaining in popularity as the idea of investing in cryptocurrency for retirement becomes much more mainstream.

It is an all-in-one cryptocurrency trading platform that supports investing in digital currencies within a tax-advantaged, self-directed individual retirement account (IRA).

One benefit of trading cryptocurrencies using the Bitcoin IRA platform is that capital gains are sheltered from taxes.

With over 100,000 account holders, Bitcoin IRA may be the largest cryptocurrency IRA provider.

Read our full Bitcoin IRA review and learn how to add bitcoin and other cryptocurrencies to your retirement portfolio.

Bitcoin IRA – All You Need to Know

bitcoin IRA review

About Bitcoin IRA 

Bitcoin IRA was launched in 2015 by three executives; Camilo Concha, Johannes Haze, and Chris Klane.

At the time, Bitcoin IRA was the first financial service company offering tax-advantaged retirement investments in bitcoin and other crypto-assets.

The company headquartered out of Sherman Oaks, California helped Americans to diversify with crypto-backed retirement accounts on a tax-deferred, penalty-free basis.

Retirement savers invest in nine virtual currencies:

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Ripple (XRP)
  • Ethereum Classic (ETC)
  • Zcash (ZEC)
  • Digital Gold (DG)
  • Stellar Lumens (XLM)

Bitcoin IRA currently boasts of a growing client base, 100,000 strong.

According to information on the company’s official website, Bitcoin IRA managed close to $2 billion in digital currency IRAs.

Bitcoin IRA makes including crypto assets in a self-directed Bitcoin IRA account easy.

Investors don’t have to go out searching for crypto IRA custodians to manage their Bitcoin-backed retirement account.

The company partners with reliable custodian and crypto wallet services to securely hold client’s cryptocurrency retirement savings.

In addition to allowing retirement savers to invest in Bitcoin, Ethereum, Litecoin and other crypto assets for retirement, Bitcoin IRA provides various other features to help their customers earn and grow their accounts.

Bitcoin IRA’s 24/7 trading platform allows for easy and secure trading in crypto and physical gold.

Bitcoin also features an interest-bearing account and a bitcoin IRA savings account, all falling within a self-directed IRA setup.

With multiples options for earning within the bitcoin IRA platform, account holders barely feel the impact of the fees they have to pay for setting up and maintaining their cryptocurrency IRAs.

Unfortunately, the company does not disclose its fees and charges on the website. Clients have to contact customer support for the exact amounts.

How it Works

Bitcoin IRA simplifies the process of setting up a tax-advantaged cryptocurrency retirement account.  

They specialize in investments in Bitcoin, Bitcoin Cash, Ethereum and other digital currencies to provide greater diversification for retirement savings.

Bitcoin IRA lets customers buy and sell a blend of digital currencies within the self-directed IRA account using the company’s proprietary 24/7 online trading platform.

A minimum investment of $3000 is required to get started.

You will also have to pay a couple of different fees including a custodian and security fee.

As Bitcoin IRA does not disclose the exact amounts to be paid in fees, you will have to speak with a representative for more information.

Once you make the application to set up a new Bitcoin IRA account, the company will help you roll over your existing retirement accounts to fund your cryptocurrency IRA account.

The most common rollover requests are for converting traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA, 401(k), and 403(b) plans into a Bitcoin IRA.

You may fund your account through a cash transfer but you cannot use digital currencies you hold on a different platform.

This isn’t a Bitcoin IRA company policy matter but an IRS regulation issue that applies across all Bitcoin IRA companies.

Bitcoin IRAs with this company are created as either traditional or Roth IRA type accounts with respective advantages in tax-deductible contributions and tax-free distributions.

It will take three to five business days before you can start trading on Bitcoin IRA’s platform using your cryptocurrency IRA funds.

Funds held in your account cannot be withdrawn before age 59.5 without prompting a taxable event or early withdrawal penalties.

The Bitcoin IRA trading platform operates like regular cryptocurrency exchanges only that you cannot withdraw funds or transfer gains before attaining the age of 59-and-a-half.

Trading within the Bitcoin IRA platform shields your investment from dividend and capital gains taxes.

Investors trading bitcoin and other cryptocurrencies in a regular non-IRA setup must pay capital gains taxes if their initial investment appreciates in value.

Beyond avoiding dividend and capital gains taxes, the money you contribute to your cryptocurrency IRA account will be tax-sheltered with a traditional IRA type retirement account or future distributions will be tax-free with a Roth IRA type retirement account.

Something unique that you won’t find with other Bitcoin IRA companies is the interest-earning program dubbed Bitcoin IRA Earn.

This pioneering feature allows Bitcoin IRA users to lend out their digital assets through investor partner, Genesis Global Trading, and earn additional returns in monthly interest.

Qualifying Bitcoin IRA Earn accounts hold at least $10,000 in Bitcoin, Ethereum or cash.

With this feature, retirement savers can earn up to 6% APY (annual percentage yield) on cash, 2% APY on Bitcoin, and 2.7% APY on Ethereum.

Earnings are calculated daily and compounded monthly.

There is a Saver IRA program that is incredibly suited for first-time crypto investors.

You will need only $100 to get started with the Bitcoin IRA saver program.

It works like a regular saver account with contributions adjusted down to a minimum $100 monthly.

With these comparatively small monthly contributions, first-time crypto investors can get exposed to cryptocurrency investing and crypto-based self-directed IRAs, cautiously.

For a well-diversified retirement portfolio, Bitcoin IRA offers gold investing for retirement in addition to crypto IRA investing.

The one thing that makes Bitcoin IRA gold more appealing than gold IRA accounts from full-service precious metals IRA companies is the ability to buy and sell physical gold directly on Bitcoin IRA’s platform.

It’s possible to buy and sell real, physical gold on the company’s 24/7 trading platform because investors are only trading the ownership rights to the physical gold bars securely stored with an IRA-qualified precious metals depository.

With this kind of setup, investing in Gold IRA is not only made easy but also so much more affordable.

With Bitcoin IRA, gold investing eliminates several middlemen and associated costs in brokerage markups and annual storage fees which are payable with a full-service precious metals IRA company.

For the investor’s peace of mind, Bitcoin IRA partners with professional Bullion Vault Facilities secured by a leading security company, Brink’s.

Custodial & Security Partners

Bitcoin IRA virtual assets are securely stored with BitGo Trust and insured by Lloyd’s of London.

The London-based insurance company covers digital assets under BitGo Trust custody up to $100 million in insurance from theft, loss, and damage.

The insurance policy does not include SIPC (Securities Investor Protection Corporation).

Starting with a well-developed custody platform, BitGo Trust sets industry standards for superior multilevel security.

It is claimed to be one of the world’s largest on-chain crypto processors, managing about 20% of all Bitcoin transactions globally.

BitGo Trust is said to hold well over $2 Billion in cryptocurrency assets belonging to various clients.

For the highest level of security, BitGo Trust uses 100% complete offline cold storage technology with added security levels in SOC 2, Type 2 security rating, and 256-bit encrypted SSL certification in line with financial institution best practices.

Additionally, wallet security is guaranteed by P2SH-multisig, a locking script that uses multiple public keys requiring multiple signatures to unlock.

Wallets also use the Hierarchical Deterministic (HD) financial policy for additional security.

Precious metals are stored in a separate secure facility powered by state-of-the-art third-party storage services.

Bitcoin IRA precious metals are investment-grade physical gold bars stored with Brink’s bullion vaults facilities.

Brink’s vaulting facilities are widely recognized for their highly secure depository services for valuable assets.

Pricing Information

There is little information available online on Bitcoin IRA fees.

What little information we did find is that the company charges a one-time service fee for setting up the self-directed bitcoin IRA with the custodian, BitGo Trust.

Maintenance fees are billed annually for custodial services and storage charges.

There are additional charges for using the trading platform, automatically billed at 1% for sell orders and 5% for buy orders.

It is possible that Bitcoin IRA charges for rollover support services.

Bitcoin IRA states that fees are not differentiated for regular IRAs, Saver IRAs, Earn IRAs, and Gold IRAs.

You will need to speak to a representative for the exact amounts charged on Bitcoin IRA products and services.

How it Stands Out 

1) Lowest Minimums

Bitcoin IRA makes crypto investing easy with retirement accounts starting with as little as $100.

You’ll need at least $5000 to get started with most competitor bitcoin IRAs.

This is higher than the minimum investment requirement for regular Bitcoin IRA accounts, $3000.

Note that $100 is only for Bitcoin IRA’s saver account, other Bitcoin IRA accounts may require as much as $10,000 to get started.

2) Low-cost Precious Metal Investing

Bitcoin IRA isn’t a full-service precious metals IRA company but it offers investment grade physical gold to be traded on their crypto exchange platform alongside crypto assets.

Basically, Bitcoin IRA lets investors trade the ownership rights of real, physical gold bars securely held at Brink’s Bullion vault facilities.

Such a setup creates multiple ways for both the account holder and the company to save on gold investing, including the ability to trade physical gold without paying taxes.

3) Trade Cryptocurrency on Mobile

Bitcoin IRA makes trading cryptocurrency and gold easy with their proprietary trading platform now available on mobile apps for both iOS and Android users.

The trading platform operates like a regular cryptocurrency exchange only that users cannot withdraw funds without triggering a taxable event.

Since Bitcoin IRA accounts are tax-advantaged, funds must stay within the account until the user attains the age of 59(1/2).

4) 24/7 Crypto Support

Bitcoin IRA makes it incredibly easy for investors to include crypto IRAs in their retirement portfolios.

Everything is done mostly online with Bitcoin IRA experts on standby to offer assistance with setting up customer bitcoin IRA accounts.

Customer support is available around the clock as the trading platform runs 24/7.

Excellent customer service from knowledgeable cryptocurrency IRA experts appears to have contributed significantly towards Bitcoin IRA’s outstanding reputation.

5) Crypto-Related Resources

Bitcoin IRA offers several resourceful educational materials and handy tools for retirement investors interested in including alternatives assets in their gold and crypto IRAs.

The company’s official website is chock-full of crypto educational resources with information on bitcoin IRAs, precious metal IRAs, and even personal finance.

There is a free cryptocurrency IRA guide that will tell you everything you need to know about your tax-advantaged account in bitcoin or other virtual currencies.

You also get current price predictions and cryptocurrency report summaries from leading players in the virtual currency space.

Bitcoin IRA posts live cryptocurrency prices, market cap data, volume information, and percentage change on the Price Chart page.

Ready to Take Your IRA to The Next Level?
BitIRA has maintained the highest rating profile in the crypto industry for 10 years in a row.

Click on the button below to start diversifying & growing your IRA with BitIRA…

Deal-breaker?

1) Fees Not Disclosed

Fees and pricing information isn’t made available on the Bitcoin IRA website because the company expects interested clients to ring them for disclosure.

Complete disclosure and total transparency is an important factor to consider when looking for the best bitcoin IRAs providers.

2) Limited Cryptos offered

Bitcoin IRA does not offer cryptocurrency IRAs with all digital currency options available in the market.

The company allows investing in only nine virtual currencies.

Bitcoin SV and other options available with some of the best Bitcoin IRA companies we reviewed are not present with this company.

With all the major virtual currencies featured, Bitcoin IRA may still be the best option in the cryptocurrency IRA space.

Reviews & Customer Complaints

Bitcoin IRA receives excellent ratings across the top consumer advocacy sites we’d consider.

The company is rated A-plus on Better Business Bureau with a 4-out-of-5 stars rating based on only 9 customer reviews.

We found two Bitcoin IRA customer complaints filed with BBB ever since the company was accredited on 3rd Feb 2020.

Bitcoin IRA complaints with BBB fell in the broad categories of product-service-related issues, and billing-collections issues.

Bitcoin IRA receives outstanding reviews and star ratings on TrustLink. The company is widely praised for excellent customer service.

With an overall 4.8-out-of-5 stars rating on TrustLink, most Bitcoin IRA reviews highly recommend investing in cryptocurrency with the company.

Bitcoin IRA isn’t a bad company to work for based on the company’s reviews posted on Glassdoor. Both past and current employees agree that Bitcoin IRA truly cares about employee wellbeing.

On average, Bitcoin IRA gets a 4-out-of-5 stars rating from employees – which is 50% higher than the average rating for all the best crypto IRA companies we reviewed.

Quick Summary

Account Types          

  • Self-directed IRA
  • Bitcoin IRA Earn
  • Bitcoin Saver IRA

Asset Classes

  • Cash     
  • Cryptocurrencies
  • Gold

Minimum Investments

  • Saver Plan: $100
  • IRA Plan: $3,000
  • Earn Account: $10,000

Fees

  • Initial setup (one-time)
  • Custodian
  • Storage

* Call for fee amounts

Features

  • Rollover from traditional, Roth, SEP, SIMPLE, 403bs, and 401(k)s 
  • Buy and Sell or Swap Crypto 24/7
  • Complete offline cold storage secured by BitGo
  • Lloyd’s of London, $100 million in custody insurance
  • Earn monthly interests of up to 6% APY powered by Genesis

Not on offer

  • Solo 401(k) plans
  • Fund account using Crypto

Final Word

If you are reading this Bitcoin IRA review article in 2021, there is a significant shift to cryptocurrency investing for retirement.

With a solid reputation of six years operating in the cryptocurrency IRA space and a client base of more than 100 crypto-savvy investors, Bitcoin IRA may very well be America’s best cryptocurrency IRA company.

Bitcoin IRA demonstrates its capacity to offer secure, flexible, and innovative solutions for cryptocurrency retirement investment.

With favorable minimum investment requirements for first-time and crypto-savvy investors, Bitcoin IRA gives everyone an opportunity to diversify their retirement portfolios.

Ready to Take Your IRA to The Next Level?
BitIRA has maintained the highest rating profile in the crypto industry for 10 years in a row.

Click on the button below to start diversifying & growing your IRA with BitIRA…

Frequently Asked Questions (FAQs)

Is crypto allowed in an IRA?

The Internal Revenue Service (IRS) legally classifies Bitcoin and other cryptocurrencies as property. As such, crypto-assets may be included in a retirement savings account similar to other approved alternative investments including eligible precious metals, real estate, fine art, and more.

Crypto assets, like other alternative assets, cannot be held within traditional IRAs. Mainstream IRA companies only focus on traditional assets such as stocks, bonds, and mutual funds.

Investors looking to include virtual currencies in an IRA must set up a self-directed IRA that supports cryptocurrency investing. Allocating a small portion of retirement savings in a cryptocurrency IRA can be a good way to diversify a retirement portfolio and hedge retirement savings against stock market risks.

How much of my retirement portfolio should be in Bitcoin IRA?

Experts warn against allocating a significant percentage of a retirement portfolio to crypto investments. For one, crypto investing through a self-directed IRA can be costly due to the additional expenses incurred in setting up and maintaining the special retirement account.

In addition to the high fees involved in maintaining cryptocurrency IRAs, investors have to contend with the myriad risks unique to digital assets as investment products. Specifically, crypto assets are known to be extremely volatile and speculative in nature with a high possibility of losing the entire investment. However, aggressive performance could also result in incredible gains.

Anyone looking to invest in cryptocurrencies for retirement, despite the risks, is advised to do so conservatively. Allocating only a small percentage of a retirement portfolio to crypto-assets can help in hedging risk as well as present a safe way to explore crypto.

Investment analysts agree below 1% would be too small to realize significant gains, and above 5% would significantly increase the retirement portfolio’s risk profile. Some experts specifically recommend holding 2-5% of the retirement portfolio in crypto.

Can I use existing cryptocurrency assets to fund my Bitcoin IRA?

No.

You cannot fund your Bitcoin IRA with virtual currencies. IRS rules and regulations prohibit this kind of transaction. For tax advantage purposes, self-directed IRAs such as with Bitcoin IRA must be funded with US dollars. This includes bank transfers and direct rollover from existing IRA or 401(k) plans.

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Author
David is a professional gold investor and trader, cryptocurrency analyst, and blockchain vehement. He has written articles, technical analysis, market analysis, books, broker reviews, etc. in the gold and cryptocurrency and market. He also has an online mentoring platform and portfolio management services.

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