Many people have contemplated opening a first time Bitcoin or Ethereum IRA account in the past few years. Alternatively you could roll over your existing Roth IRA, IRA, 401k or 403b account to an Ethereum or Bitcoin IRA. The first step to make this a reality is to select a dependable and highly reputable cryptocurrency IRA firm with which to work. It is important to understand that this investment field is still somewhat new (and a high risk). Even today there are not that many Bitcoin IRA companies from which you can choose.
Regardless of if you prefer Ethereum, BItcoin, Ripple, Litecoin, or other cryptocurrencies, you really need to partner up with a custodian company that boasts a solid track record helping retirement investors as well as the knowledge to effectively answer any questions that you have and to provide the most flexible personalized options that fit your budget and goals. If you were to incorrectly set up your new Digital Assets IRA, this could lead to a few thousand dollars in penalties and even land you in real trouble with the rightfully feared IRS. It explains why it is so very important to deal with a firm that already has a successful template for the process of establishing such an account and which knows how to answer ALL questions that arise in the account opening procedure.
Here we look at a helpful comparison chart that will help you to pick one of the top five Cryptocurrency IRA’s. Our rankings are based upon the most up to date consumer ratings firms from all of the big three review boards including the Better Business Bureau, Business Consumer Alliance, and Trustlink to name just a few. You are able to investigate all of the ratings specifics on each company by reading our expanded reviews on each of the five companies. To do this, simply click on the “View Full Review” button found under each company in the chart. It would make sense to bookmark this web page or print a copy of it as you may need to refer to it in the future.
Bitcoin and second leading digital asset Ethereum have taken the world by storm over the last few years. This chart shows how the king of cryptocurrencies has been on a wild roller coaster ride that culminated in $20,000 per BTC last year. For those who invested early on, they are still massively up in account value, though if you bought in during the heady days of the astronomic rise in 2018, you could be significantly under water. For sure, the last year and a half have been incredibly exciting times for the leading cryptocurrency.
After a severe correction, the leading digital assets are again fitfully on the march higher. Today, experts in the field see that there is once again huge opportunity for price appreciation for Bitcoin, Ethereum, and other leading cryptos. In past years, Saxo Bank’s analyst Van Peterson successfully predicted that Bitcoin prices would rise from around $750 to $2,000 (along with technology guru Kim Dotcom). Since then, Van Peterson has updated his price forecast for the world’s original and largest digital asset to reach $100,000 in under ten years from now. It would be a gain of nearly 20 fold from recent Bitcoin prices. This kind of monetary gain is what makes multiple generation family fortunes.
How did a respected and widely followed analyst come up with such enormous price gain predictions in the space? Van Peterson makes the assumption that the primary surviving digital assets will amount to ten percent of the Forex currency exchange trade average daily volumes in less than ten years. Today’s Average Daily Value for Forex trades is about $5 trillion according to the Bank of International Settlements. A 10 percent market share of $5 trillion would provide an ADV of $500 billion.
Van Peterson states that Bitcoin will maintain a 35 percent digital assets market share over the long term. This would mean that it possessed $175 billion of the average daily volume of world forex markets trading. If the total Bitcoin market cap amounts to 10 times the Average Daily Value, then Van Peterson states this would provide BTC with a $1.75 trillion market cap. He further projects that there will not be more than 17 million of the maximum 21 million fixed limited totals available in Bitcoin in a decade. If you divide his estimated $1.75 trillion market cap by 17 million in bitcoins, then you get to a Bitcoin value of just over $100,000 per coin. Van Petersen claimed that:
“This is not a fad, cryptocurrencies are here to stay. There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale, and the pioneering.”
Ethereum has successfully maintained its position as the second digital asset and demonstrated its many uses in such critical up and coming digital need areas as smart contracts (this is already apparent in cash transfer transactions and account management and payment systems). It means that Ethereum has already locked down a slot as one of the other two surviving digital assets. One thing that has helped to cement the place of Ethereum as the number two is its powerful Enterprise Ethereum Alliance of companies that include such internationally leading firms as BP, Intel, Microsoft, JP Morgan, and countless other international banks and corporations. This should only broaden and grow, strengthening the position of Ethereum over time.
Assume for a moment that analyst Van Peterson has made overly optimistic projections for the future pricing of Bitcoin. Yet still the unlimited potential and limited number of fixed Bitcoin that can be created mean that the the digital asset is like a new electronic gold in your retirement portfolios. Other individuals have already claimed that Ethereum is the new digital silver thanks to its many “industrial” types of applications and uses in the new frontier of the block chain.
It is important to remember that while these leading cryptocurrencies like Bitcoin and Ethereum (and others) have shown great promise and dramatic rises in value, their prices can drop (and have swung wildly) substantially. Even industry-leading Bitcoin has plunged more than 30 percent in only hours in the past. It is important to keep in mind that the digital assets are not regulated by anyone nor backed up by anything physical (unlike the physical forms of the precious metals). This means that you should cautiously invest only money that you can afford to lose entirely.
Top 9 Reasons to Contemplate Investing in Digital Assets in Your IRA
There are more reasons to invest in the major cryptocurrencies than the mere possibility that they will massively appreciate over the next decade. These are significant and important reasons to include the digital currencies in a balanced and diversified retirement portfolio which is already stocked with bonds, stocks, and physical precious metals. These technological gold types of assets (bitcoin) and silver (ether) possess the below advantages as compared to the old fiat currencies that governments back and manipulate:
- Cryptocurrencies are young and exciting – It means that they have years (if not decades) of potential as compared to other investment classes and assets. They also possess huge potential for years of explosive growth
- Anonymity offered by the digital assets – this is hugely appealing to many investors who place great value on financial activity privacy. With the cryptos, you can conduct discreet transactions across borders around the world. It also diminishes your chances of having your identity stolen or used in fraud
- The world is moving in an inexorable direction of becoming more digital – such technological discoveries as the digital assets will secure their newfound place in this technology with time and successful use
- No transacting or holding fees exist – with the digital assets like with banks or other fees for investment holdings
- Owners of Bitcoin and other cryptocurrencies can not have their currency interfered with by the U.S. government and Federal Reserve – Though more coordinated attempts at regulation are increasing, for now the major digital assets are mostly unregulated. They will never be dominated by a national central bank in any case. This provides their real similarity to gold and silver that appeals to investors
- Supplies are strictly limited, while demand is growing – which translates to a price that will rise given time and increasing demand. No more than 21 million Bitcoin in total can ever be generated according to the inbuilt rules of the system. At 17 million already in existence, the total maximum will soon be reached past which no more can be created. This actually makes BTC much rarer than gold and other precious metals. The council that oversees Ethereum has similarly limited its production
- Bitcoin and Ethereum offer a safe haven asset appeal like precious metals – it is inevitable that financial and economic crises will continue to strike. Limited quantity safe haven assets such as precious metals and the major digital assets offer the potential for substantial flight to safety gains with rising tensions. Governments around the globe can keep printing their worthless paper currency in these instances, but precious metals and digital assets may never be reproduced in unlimited quantities. Such a highly limited quantity means that they gain real appeal in financially unstable times like those seen today
- Real diversification in your retirement holdings – very likely your own retirement portfolio is heavy on stocks and bonds. Even if you have another asset class or two in the mix, this is still not truly effective diversification of assets. The digital assets offer you a new asset class where you can place a portion of your holdings for retirement or investment
- They offer an effective hedge for the dollar that is being constantly devalued – a growing and greater quantity of dollars are created from thin air as the U.S. Treasury continues to spend more money than the country can ever hope to repay. The deficit will continue to run a trillion dollars per year and more until people will no longer accept these printed dollars. The dollar’s value has to decline to match the seemingly endless supply of greenbacks. With a finite number of both Bitcoin and Ethereum units in existence, their supply can not be inflated away. Precious metals and digital assets alike offer a true alternative hedge to currencies like the declining dollar and other Western currencies out there today
N.B.: Regardless of whether you decide to invest in the digital assets in the end, it is critical to talk with your financial adviser and perform your own due diligence on this new asset class. We can not overemphasize that this is a highly speculative form of investment. Do NOT invest any sum of money that you can not afford to lose.
What to look for in a Crypto IRA company
As you contemplate the table above and compare the reviews and ratings of the best Bitcoin and Ethereum IRA companies, it makes great sense to consider these three important characteristics:
Inevitably it makes great sense to go with a company that offers many positive reviews submitted by current customers. The most important of these consumer ratings firms are the Better Business Bureau, the Business Consumer Alliance, and Trustlink. You could also look at any feedback provided by trustworthy websites like YP, the Complaint Board, and Yelp. They reveal significant insights into the Digital IRA company’s all around quality and customer service.
Digital Assets Safety
Undoubtedly the top risk of having an account with one of these firms is the potential to have your digital assets stolen or lost. Hackers have successfully made off with hundreds of millions of dollars in Bitcoin over the last several years. You should not be shy to ask your custodian how they will handle such malware and hacking risks. Is your private key printed utilizing an offline machine? Do they employ cold storage for all digital assets? Is a multisig feature a standard protocol with their company? Make them share with you the various means they use to protect the assets of their clients. There should not be any hesitation or inconsistencies in their responses.
Account Set Up Efficiency
With all of the interest in having new Digital Assets IRA’s these days, some customers have been forced to wait literally months to get such an account established and available to make initial purchases. Cryptocurrency markets move much faster than many competing asset classes. You can not afford to be sidelined from your new account while they move more than 20 percent higher in some cases. It could cost you thousands of dollars in higher purchase prices. Just look at the differences in Ethereum prices in the year following April 2017:
Top 2 Full Service Firms to Seriously Consider for your Cryptocurrency IRA Investment
Taking all of the factors above into consideration, two of the five firms emerge as the leaders. These are Regal Wallet (a full subsidiary of Regal Assets) and Bitcoin IRA. They win for many reasons, not only for their highest of respected consumer industry ratings, but equally for their reputations for tackling the whole account process from start to finish. Broad Financial, BitIRA, and Noble Bitcoin do not do this either at all or nearly so effectively.
In particular with Broad Financial, they only establish an LLC in your name and then give you the package to run with it, meaning that you must connect with your own custodian, wallet, and exchange. This is quite a lot of work to be left with on your own. Besides this, many wallets will not accept LLC business customers or will at least make you wait for weeks, or will place restrictions on such accounts that limits how many digital coins you can acquire. Major and trusted exchange Coinbase limits these new business accounts to $150 only per day. Broad Financial is really a better choice for people who are already expert cryptocurrency traders and who possess their own wallet with substantial limits. For beginners, this and the other two companies BitIRA and Noble Bitcoin are simply not the best possible choices on the market today.
Disclosure: we wish to remind you that we are a 100% independent site. This means that none of us work for any of the companies reviewed on this page. We strongly recommend that you always do your due diligence carefully when selecting a company with which to work. Call a few, and request their free kits in order to get a better idea of what they actually offer. Also, keep in mind that digital currencies are a highly volatile and risky investment. You can earn big, out-sized returns, but you can also lose big. Do not invest any amount that you can not afford to lose completely.