Cryptocurrency IRAs are risky investments. As with most retirement investments, you need to pick a reliable custodian to work with. Herein we compare and present the best Ethereum IRA companies for your investment needs.
- Annual Fee: $240
- Minimum Investment: $3,000
- Promotion: Earn up to 6% on cash and crypto
- Annual Fee: $300 and up
- Minimum Investment: $20,000
- Free Ledger for new customers
- Monthly Fee: $29.95
- Minimum Investment: $1,000
- Promotion: No current promos
Due to uncertainties in the financial world, diversification of investments is an absolute must. That’s why some investors adopt cryptocurrencies as their retirement assets.
Cryptos are digital currencies with no insurance from government organs like FDIC. Ethereum IRAs require specialized management and a profound mastery of digital coins.
A shady company could end up costing you millions or landing you into problems with the IRS. Always do some research before working with a cryptocurrency IRA company. Go for firms with flawless IRS records, transparent fees, and well-versed in crypto trading.
In this guide, we present the best Ethereum IRA companies. We base our research on a thorough analysis of company security, ease of trading, fees, and expertise.
Compare Top Ethereum IRA Companies in 2021
What is an Ethereum IRA?
Ethereum IRAs are self-directed retirement accounts that allow investors to include cryptos in their portfolios.
Traditional IRAs limit investment to stocks, bonds, and similar assets. However, with an Ethereum IRA, you can invest in digital assets like Ethereum.
Ethereum (ETH) is an in-demand digital coin that has grown astronomically in recent years. ETH is the second most popular crypto after bitcoin. Many investors view ETH as a safe-store value asset.
Investing in Ethereum for retirement might boost your investment returns.
Ethereum IRA Reviews
Bitcoin IRA tops the charts due to its incomparable in-class services. The company offers an easy-to-use trading platform.
You can invest in multiple digital assets and earn interests of up to 6% on crypto deposits.
With over 100,000 users, Bitcoin IRA is perhaps the largest cryptocurrency IRA firm in the US. The company offers different IRA accounts, including a Bitcoin 401(k). Setting up an account is straightforward. You can either utilize the online dashboard or their app.
You can begin trading three to five days after loading funds. Trading is open 24/7. Bitcoin IRA holds your digital assets in a secure, separate cold storage wallet.
The biggest letdown is the lack of transparent pricing. The company does not list fees on its website.
When it comes to protecting your digital assets, no company does it better than BitIRA. This firm covers your assets then protects them using multi-signature authentication. Offline storage limits the exposure of your cryptos to hackers.
BitIRA clinches the first spot as the most secure crypto IRA company. It provides top-notch security for asset storage and transaction. The company offers many layers of protection.
Multi-encryption encoding guards all transactions while cold storage wallets hold your funds. BitIRA stores keys in grade-5 nuclear bunkers, which are protected 24/7.
The firm also covers digital assets from losses, theft, and damage using dollar-to-dollar insurance. The high levels of security translate to more storage fees.
BitIRA currently supports coins like Bitcoin, Ethereum, Bitcoin Sv, Stellar Lumens, Litecoin, Zcash, and Ethereum classic. Overall, BitIRA is the ideal bitcoin IRA company to protect your assets.
iTrustCapital is the best trading platform due to its low trading and monthly fees. It allows investors to trade cryptos and precious metals within retirement accounts 24/7.
The ease of trading makes iTrustCapital the ideal digital trading platform. You can effortlessly buy and sell gold and cryptos through your retirement account.
The fees and rates are low compared to other crypto IRA companies. This company charges an affordable 1% fee on all crypto transactions. The fee for trading gold is $50 over spot per ounce. What’s more, you only incur $29.95 in monthly maintenance fees.
The minimum investment is $1000, while the trading minimum is $30. You can trade in Bitcoin Cash Ethereum, Ripple, Litecoin, Chainlink, Stellar, EOS, Cardona, Polkadot. Investors can also diversify their IRA portfolios by trading in gold.
The company covers all accounts with a $50 million insurance policy. Curv, a security service provider, secures all crypto IRA accounts.
Ethereum IRA Rules & Regulations
The Internal Revenue Service (IRS) considers Ethereum and other cryptos an off-limit property for IRAs. It treats virtual currencies differently from investments like stocks and bonds.
Conventional financial institutions don’t support digital assets. You cannot add Ethereum to your pre-existing IRA that carries stocks, ETFs, precious metals, or mutual funds. The only alternative is setting up a Self-Directed IRA (SDIRA).
The IRS does not explicitly state which investments should be part of self-directed plans. This loophole enables crypto IRA providers to interpret digital tokens as capital assets.
IRA holders wishing to include digital assets in their retirement accounts have to seek the help of custodians that accept virtual currencies.
Only work with IRA companies that have a mastery of the process. Any wrong move could get you into trouble with the IRS or sink your investment.
When choosing the best Ethereum IRA companies, inspect things like:
- IRS compliance
- Track record
- Ratings and reviews from sites like BBB, TrustPilot, BCA, TrustLink
- Easiness of setting up an account
- Safety protocols (when trading and storing digital assets)
Benefits of Having an Ethereum IRA
There are plenty of positives from an Ethereum IRA.
Ethereum as an investment is subject to capital gain tax. However, when you hold Ethereum in your IRA, it doesn’t attract capital gain taxes. The growth of virtual currencies in IRAs is tax-deferred.
Taxes only take effect when cashing out funds from your account.
Transactions involving cryptos are secure. All transactions are anonymous and rely on the peer-to-peer protocol. What’s more, most IRA companies cover these transactions from theft.
There are multiple layers of security features that protect your wallet. The best Ethereum IRA companies store private keys in guarded, offline vaults.
Every investor knows the proverbial saying; you shouldn’t invest in a single asset. Virtual currencies diversify your retirement portfolio into a different class of assets.
Unlike stocks and mutual funds, cryptos don’t depend on equity markets. When stocks crumble, you can take solace in your digital currency.
Ethereum can act as an inflation hedge that protects your retirement portfolio when the dollar value diminishes.
Cryptos are free from the grasp and influence of central banks. The fluctuation of fiat currencies does not affect digital assets.
Cryptocurrency supply is limited while its demand keeps surging. Ethereum prices continue to soar, and experts predict more parabolic gains in the future. The fact that ETH is scarce and mining takes time means prices will keep rising.
With that said, you cannot rule out the volatility of crypto trading. A long-term investment plan might be necessary to maximize your returns. Since it’s a retirement investment, you can afford to be patient.
How to Invest in an Ethereum IRA
Investing in an Ethereum IRA isn’t complicated. Follow these vital steps.
Step 1: Choose a Crypto IRA Provider
The process of adding Ethereum to your retirement portfolio begins by picking a crypto IRA provider. You need to identify the best Ethereum IRA companies, then open a self-directed IRA. Ensure the custodian deals with cryptocurrencies.
Step 2: Begin Rollover or Transaction Process
The next step is funding your new account via a rollover or a transfer. Go for the rollover option if you want to transfer funds from an existing retirement account or any tax-advantaged account.
Step 3: Invest in Ethereum or Crypto
The final step is to complete your crypto allocation order then hold your Ethereum until you clock 59 years. Similar to traditional IRAs, you face penalties whenever you make an early withdrawal.
Adding Ethereum to your retirement portfolio involves some risk. There is limited regulation, no transaction guarantees, security issues, among other potential pitfalls. It’s crucial to pick a reputable Ethereum IRA company that’s well-versed in cryptocurrencies.
For top-level security of your digital assets, sign up with BitIRA. If you need a low-cost investment company, go with iTrustCapital. If you’re unsure, create a retirement account with Bitcoin IRA, the largest crypto IRA firm.
Bitcoin IRA is the first company to offer Bitcoin, Ethereum, and other cryptocurrencies in an IRA. It makes crypto IRAs more accessible to everyone by educating its customers, creating a user-friendly platform, and providing top-notch security through BitGo.
Ethereum IRA FAQ's
Cryptos are stored in digital wallets. These wallets are hardware or web-based, and you can hold them on your phone or PC.
Another secure option is printing wallet private keys and storing them in offline vaults.
A bitcoin exchange is a crypto exchange platform that facilitates the buying and selling of bitcoin. It functions as a digital market where investors trade their fiat currencies or altcoins for bitcoins.
The first step is storing all your digital assets in cold wallets. Offline storage eliminates the chance of hackers stealing your coins. Only access your wallet when you’re ready to trade.
Always use unique and long passwords when creating your crypto IRA. The passwords should contain capital letters, small letters, numbers, and special characters. Cybercriminals are unlikely to crack such passwords.
Avoid sharing your details on social sites and crypto forums. Hackers frequent social media and might use the information you present to access your retirement account.
A Self-Directed IRA is a type of IRA that allows users to hold alternative investments in their retirement accounts.
In traditional IRAs, the custodian limits the type of investment you can hold. Most of these investments are stocks, mutual funds, certificates, or bonds.
In SDIRA, custodians allow you to invest in prohibited assets like cryptos, precious metals, real estate, and promissory notes. The custodian plays a passive administration role, while the investor directly manages his/her account.
An IRA custodian is a regulated financial entity that houses your investments. It ensures all the assets you hold adheres to financial and tax regulations. Custodians can be trust companies, banks, credit unions, or entities the IRS approves.
Is cryptocurrency viewed as a retirement asset by the IRS?The IRS does not adequately address whether virtual currencies are retirement assets. It only lists cryptos as taxable property.
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