With a crypto IRA, you can use your retirement savings to buy, sell, and exchange more than 200 coins and tokens directly through Coinbase. The Internal Revenue Service (IRS) rules mean that you can't contribute cryptocurrency directly to your Roth Individual Retirement Account (Roth IRA), but there seems to be no rule about adding cryptocurrency to your Roth IRA through a purchase. However, few Roth IRA providers allow you to do this, including Gold and Silver IRA Companies. This has led to the emergence of “Bitcoin IRA retirement accounts” designed to allow you to invest in cryptocurrencies. Some argue that cryptocurrencies can increase the diversification of Roth IRAs, and others argue that cryptocurrencies (and the Roth IRAs that hold them) will continue to increase in popularity and price in the future.
Some of these companies include BitIRA, Equity Trust and Bitcoin IRA, one of the first leaders in this field. This means that you can't contribute cryptocurrencies directly to your Roth IRA, but you can add them to your IRA through a purchase. A federal judge of the South Dakota District Court required Kingdom Trust to fully restore access to the data of all affected Bitcoin IRA customers. If you're looking for ways to increase cryptocurrency exposure to your IRA, Grayscale funds cover a variety of popular and emerging cryptocurrencies.
If you're interested in exposing yourself to cryptocurrencies directly in your IRA or traditional brokerage account, type the Grayscale ticker symbol in your account or contact the financial services provider of your choice. You can have several traditional and Roth IRAs, but your total cash contributions cannot exceed the annual maximum and the IRS may limit your investment options. Bitcoin and cryptocurrency IRAs are nothing new in the U.S. In the US, but the trio wants to take this financial instrument to a whole new level.
While Coinbase offers more options, both retirement account providers allow you to invest in established cryptocurrencies such as Bitcoin, Ethereum, and Bitcoin Cash. Coinbase IRA allows you to store your own cryptocurrencies without an Internet connection, while iTrustCapital partners with other companies to store cryptocurrency for you. There are some rules that prohibit Roth IRAs from holding “collectibles” and “coins”, but they don't seem to apply to cryptocurrencies. Because cryptocurrencies are property, an IRA can purchase cryptocurrency by purchase without violating rules that prohibit IRAs from storing collectibles or coins.
Coinbase only charges additional fees if you want to trade other alternative assets, such as real estate and companies. iTrustCapital allows investors to choose from more than 25 cryptocurrencies, but a Coinbase IRA gives you more than 150 options. Interestingly, Bitcoin IRA just won a legal battle against Kingdom Trust, the custodial partner of Regal Assets.
