Crypto IRA Platform Comparison
Why accumulate Bitcoin inside a Roth IRA?
Well at the time of writing (2024) individuals who are employed are entitled to set aside up to $7000 a year ($8000 if older than 50) into a ROTH account held at a brokerage. The US government allows individuals to grow these balances and withdraw them tax-free. So if you think Bitcoin could grow 5x 10x or 20x over the next 20 years, it make sense to wrap your Bitcoin inside a Roth IRA.
That way, you’ll never have to pay taxes on the gains as long as you don’t retried the money before age 65. Remember, you CAN retrieve your principal tax free at any time. But on any capital appreciation that you withdraw early you’ll have to pay 10% “penalty” fee plus any taxable amount as determined at the time under capital gains rules.
Of course, there is one big caveat to this plan. If you are buying Bitcoin as a hedge against financial chaos in the global economy – such as a collapse of the US dollar with the ensuing economic havoc that would entail – then this strategy is not for you. Why? Because you are entrusting a third party to hold your Bitcoin. They might go bankrupt or be susceptible to government pressures to seize your assets. After all, this happened with Gold in 1933. Remember, history does not always repeat, but it sure does rhyme.
| Feature | Bitcoin IRA | Alto CryptoIRA | iTrustCapital | Swan Bitcoin IRA |
|---|---|---|---|---|
| Buying Cost / Trading Fees | 2% per trade + 0.08% monthly maintenance fee | 1% per trade | 1% per trade | Variable transaction fees |
| Minimum Investment | $3,000 | $10 | $1,000 | No minimum |
| Annual Fees | $20 minimum monthly maintenance fee | $360 per year | No annual fees | No explicit annual fees listed |
| Ability to Transfer to Wallet | Custodial wallet with BitGo (cold storage) | Crypto held with Coinbase custody | Uses Coinbase for custody | Custody with Equity Trust; on-chain tracking available |
| Years in Operation | Since 2016 | Since 2018 | Since 2018 | Since 2019 |
| Headquarters | Sherman Oaks, CA, USA | Nashville, TN, USA | Irvine, CA, USA | Calabasas, CA, USA |
| Asset Options | 60+ cryptocurrencies, gold | 200+ cryptocurrencies | 30 cryptocurrencies, gold, silver | Bitcoin only |
| Unique Features | 24/7 trading, insurance coverage of $250M | Lowest minimum investment | No setup or maintenance fees | Supports recurring buys and Roth conversions |