Are Crypto IRA's a smart investment?  If you believe that cryptocurrencies are going to be around for the long term, and you want tax advantaged accounts, the answer is Yes.    

I recently had a friend who came into inheritance money.  He had $30,000 that he was looking to do something with.  In our discussion we spoke about retirement accounts and also about cryptocurrency.  I mentioned to him that there are actually Cryptocurrency IRA accounts (aka...Alternative Asset IRA).  The benefit for him would be that he could take advantage of the massive upside potential of crypto while combining it with the tax advantages that normal IRA's have. This conversation led me to do some more research into the Pro's and Cons of this retirement vehicle.  I hope this article helps others to make educated decisions for their financial futures.    

Why Consider A Crypto IRA?

• Tax Advantages: IRA as can be tax deferred and are used for long-term retirement planning.
• Diversification:  Crypto is an "Alternative Asset Class" and falls outside of the traditional stocks and bonds market.
• Micro Diversification:  Most Crypto IRA's let you hold several types and amounts of crypto. Ex. Bitcoin, Ethereum Litecoin etc.   

What Are The Advantages Of Owning Crypto IRA?

• Huge upside potential:  Crypto is still a young and maturing industry, unlike the stock market.  That being said, there is massive potential for explosive returns on investment.  Having some exposure in your portfolio is probably worth the risk especially over the long term.
• Owning multiple crypto assets, in one account allows you to grab more potential gains and limit some risks.
• Short Term vs. Long Term Capital Gains. 
• Roth or Traditional IRA's available.  

What Are Disadvantages Of Owning Crypto IRA?

• Volatility and High Risk:  People and Industry is still trying to figure out what the true value of crypto's are.  As advancements in technology succeed (or fail) the perceived value will continue to change...sometimes very rapidly. 
• Fees:  Some companies are better than others but there are always fees to consider when purchasing Crypto IRA's.  Some fees include: set up fees, administration fees, and storage fees.
• Minimum Balances:  Companies also differ on how much of a minimum balance you need to have. 
• Not Holding Private Keys:  Most Crypto IRA accounts are custodial accounts, which means they hold the private keys to the assets.  If something were to ever happen to the company, you risk losing your funds.

How To Fund A Crypto IRA Account?

  You can transfer funds from existing retirement accounts such as:

• 401(k)
• 403(b)
• Roth IRA
• Traditional IRA
• SEP IRA
• SIMPLE IRA
• Pension plans
• Various annuity plans
• TSP (Thrift Savings Plans)

How Much Should I Own?

Many professionals who are willing to recommend cryptocurrencies as an investment, suggest that 5% of your portfolio should be in crypto.  This allows you to catch the potential upside without risking your whole retirement funding.  In general, you should not invest any money that you can't afford to lose.  

Comparisons Of The Three Crypto IRA Companies I Researched: (Regal Assets, BitIRA, and Bitcoin IRA)

Regal Assets

• $5000 minimum (if over $10,000 setup fees and storage fees waived for first year)
• A+ Better Business Bureau rating.  (1000's Positive Reviews / Very few Negative Reviews) Since 2010.
• Crypto's stored in offline wallet in cold storage.
• All assets are Fully Insured
• Excellent Customer Service

BitIRA

• $20,000 minimum
• A Better Business Rating.  (Not many reviews, however most reviews are positive.)
• Crypto stored in offline wallets in guarded cold storage vault.
• All assets are Fully Insured.
• Excellent Customer Service

BitcoinIRA

• $3000 minimum
• B Better Business Rating.  (Company is not BBB Accredited, and does not have any reviews)
• Crypto stored in offline wallet in cold storage.
• Assets insured up to $1 million.  
• Excellent Customer Service.

My Personal Opinion:

I have researched each of these companies and have personally chosen to use Regal Assets myself.  I have appreciated their customer service, their well established track record, and relatively low barrier to entry.  In addition, I appreciate the companies willingness to educate their customers with free pamphlets and resources.  

If you are interested in getting a Free information packet please click ----->>> HERE

Conclusion: 

Crypto IRA's are not for everyone.  However, if you are looking to add some exposure to crypto in your retirement portfolio and are looking for the high upside potential of crypto with tax advantages, it is definitely an asset worth considering.  I hope this article helps you understand the benefits/disadvantages of crypto IRA's, as well as the pros/ cons of some of the leading Crypt IRA companies.