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You can invest in a wide range of assets with an individual retirement account. Recently, bitcoin IRAs have become available as the cryptocurrency has surged into the mainstream consciousness.

An overzealous allocation of bitcoin could quickly change your retirement plans from a beach on a Caribbean island to an extra 10 years in the workforce. Still, some investors want the broader diversification that comes with investing in cryptocurrency, making bitcoin IRAs a consideration.

Bitcoin IRAs may suit some investors more than others. Let’s take a look at some of the best bitcoin IRAs on the market in 2024.

Best bitcoin IRAs

Why trust our investing experts

Experienced analysts selected our product selections based on a screening of several stringent, must-have metrics. Advertisers do not influence our editorial content. You can read more about our methodology below.

  • 10+ bitcoin IRA companies reviewed.
  • 5-step fact-checking process.
  • 3-step editorial review.

Best bitcoin IRAs June 2024

Compare bitcoin IRAs

COMPANYACCOUNT MINIMUMFEESINVESTMENTS
Alto CryptoIRA
$10
1% trading fee, $50 account closing fee, $25 outbound wire fee
200+ cryptocurrencies
BitIRA
$5,000
Up to 5%
17 cryptocurrencies
Coin IRA
$5,000
1.25% buy fee, 1% sell fee
19 cryptocurrencies and three precious metals
My Digital Money
$1,000
1.9% transaction fees (<$25K)
19 cryptocurrencies
iTrustCapital
$1,000
1% trading fee
34 cryptocurrencies and two precious metals

Methodology

We listed popular Bitcoin IRAs in a directory format to serve as a point of reference for the reader, before assessing some of the pros and cons of each.

To screen the IRAs, we limited our assessment to those that offer a minimum investment of $5,000 or less, meaning small diversification into the asset would be possible, following our discussion of the risks of bitcoin in the introduction.

We also limited our analysis to IRAs that offer 5% crypto transaction fees or inexpensive initial account setup fees.

Why other IRAs didn’t make the cut

Some popular IRAs that did not make the cut include those from BlockMint, Broad Financial and BitTrust.

These options had account minimums above $5,000, transaction fees north of 5% and/or expensive initial setup fees.

Final verdict

Bitcoin IRAs are new, so it is more difficult to assess them than other financial products. 

The IRA structure provides attractive tax benefits, which means the demand for investing in bitcoin through this medium is increasing. 

But investing in bitcoin through an IRA also has drawbacks.

“In an IRA, you cannot offset losses with gains that could be achieved in a brokerage account for tax-loss harvesting purposes,” said Laurie Itkin, a financial advisor and wealth manager at Coastwise Capital Group.

You also can’t generate investment income as you can with stock dividends, bond interest and real estate rents, Itkin added. Instead, your profit is dependent on capital appreciation. Also, the fees are typically much higher than those of other mediums through which you can buy bitcoin, such as exchanges.

It is paramount to educate yourself before investing in such a volatile asset. It would be wise to go the conventional route, such as through a crypto exchange, before diving in through less-heralded IRA companies. 

Bitcoin’s volatility means the most important thing for investors is to diversify and not be overallocated. Invest only what you can afford to lose as bitcoin flails in an unforgiving bear market. 

Frequently asked questions (FAQs)

Bitcoin IRAs work much like normal IRAs, except you are investing in bitcoin rather than assets like stocks or exchange-traded funds.

The behind-the-scenes mechanics may also differ. Rather than a one-stop shop where all trades are carried out, IRAs commonly partner with exchanges or third-party apps where transactions are carried out.

Storage of assets is also different in the digital realm, and it varies between IRA providers.

Some use cold storage, generally seen as more secure, while others instead use hot wallets, which are connected to the internet. Customers should do their research about these storage options, as there have been many hacks in the crypto space over the years.

Bitcoin is an extremely volatile asset, so it can never be described as safe. The potential returns may be greater than those of traditional asset classes, but that is a double-edged sword. With greater potential reward comes greater risk.

In addition to the volatility of the asset itself, most bitcoin IRAs are also new. That means there is less of a track record and customers have less of an ability to assess the companies.

That is of particular concern in the realm of digital assets, where security is pivotal. To summarize, there are several risks with the asset itself along with these new IRA offerings.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Chris B. Murphy is a freelance editor of investing content at ӣƵ Today Blueprint. He was most recently an editor and fact-checker for Investopedia.com and The Balance but also has 17 years of experience in financial services. Chris specializes in financial topics, including investing, personal finance and economics. He holds a bachelor's degree in economics with a concentration in finance.

Hannah Alberstadt is the deputy editor of investing and retirement at ӣƵ Blueprint. She was most recently a copy editor at The Hill and previously worked in the online legal and financial content spaces, including at Student Loan Hero and LendingTree. She holds bachelor's and master's degrees in English literature, as well as a J.D. Hannah devotes most of her free time to cat rescue.