Buy Bitcoin, Ethereum & More In A Crypto IRA

A crypto IRA is a retirement account that is similar to a traditional IRA, except it allows you to hold cryptocurrency instead of more traditional investments, like stocks or bonds. The main benefit of a crypto IRA is that it allows you to diversify your retirement portfolio with a new asset class that has the potential to grow at a higher rate than more traditional investments. You can learn more about what a crypto IRA is in this article.

The main difference is how your crypto investments are taxed.

A crypto Roth IRA is funded with after-tax dollars, meaning you don’t get a tax break now—but your investments grow tax-free, and you can withdraw your gains tax-free in retirement (as long as you meet certain requirements). If you’re exploring Roth IRA crypto as an option, it’s a great choice if you expect your crypto assets to increase in value over time and want to avoid taxes on those future gains.

A traditional crypto IRA is funded with pre-tax dollars (or tax-deductible contributions), so you may get a tax break now. But when you retire, your withdrawals are taxed as regular income. This option is often better if you want to lower your taxable income today and think you’ll be in a lower tax bracket in retirement.

Both offer powerful ways to diversify your retirement portfolio with crypto. Choosing the best crypto Roth IRA or traditional IRA depends on your current tax situation and future financial goals.

An IRA custodian is a licensed and regulated institution, like a bank, credit union, or non-depository bank that holds IRA assets. There are different types of custodians, including third-party and self-directed custodians. When you invest in a crypto IRA on My Digital Money, your assets are held in trust by our custodian, Equity Trust. Learn more about how custody works here.

My Digital Money currently offers 20 cryptocurrencies that can be traded in an IRA. Our team carefully researches and reviews each coin before making it available for purchase in an IRA by our customers.

You might be surprised to learn that there is actually no limit on the number of IRAs that you can have. However, there are limits on the total amount you can contribute to the IRA each year that would be subject to tax advantages. Currently, you are allowed to contribute up to $6,000 per year to an IRA, or $7,000 per year if you are over 50.

While you can’t invest directly in NFTs just yet on My Digital Money, we do offer a few ways that you can get exposure to Web3 assets in your crypto IRA. We offer a few coins on My Digital Money such as Decentraland (MANA). These could be considered NFT “adjacent” due to their usage in virtual reality, video games, and other applications that require a non-fungible token.

The best way to diversify your IRA is to open a self-directed IRA like a crypto IRA. A self-directed IRA will allow you to invest in non-traditional assets such as real estate, art, precious metals, and cryptocurrency. Diversifying your retirement savings with alternative investments is a great way to hedge against inflation and unexpected volatility in traditional markets.

Buying crypto in an IRA is similar to buying crypto in a standard trading account. First, you’d sign up with a crypto IRA platform like My Digital Money and fund your account. Once your account is set up and the funds have cleared, you can start trading cryptocurrencies as you would on any other platform. The big difference is that trades executed in the IRA will be allowed to grow tax-free until they are disbursed.

We apologize that our automated trigger orders are currently unavailable due to a recent switch in liquidity provider. We are in the process of looking to partner with other liquidity providers and bring this feature back as soon as possible.

My Digital Money’s Automatic Trigger Orders allow investors to automate both buying and selling based on predetermined “price triggers”. For example, automatically sell any coins if they’ve dropped to a certain price to limit losses. Or automate buy orders to purchase more crypto once it hits a certain price, to maximize your potential gains by “buying the dip”.

Technically, you are not allowed to borrow any funds from your IRA, and any withdrawals made before the maturity date are subject to taxes and penalties. However, any funds that are withdrawn can be repaid within 60 days and will not be taxed or subject to penalties.

When you contribute to your traditional crypto IRA, you are able to deduct the full amount contributed from your taxable income. This means that if you’ve earned $100,000 in a tax year and you make the maximum contribution of $6,000 to your IRA, your taxable income will be $94,000. Th maximum contribution limit is imposed by the IRS and is $6000 – $7000 depending on your age. See your Tax Accountant for your specific situation and guidance.

My Digital Money is not a cryptocurrency exchange or custodian, so we do not directly hold your digital assets. We hold all crypto assets in trust with our custodian, Equity Trust.

Equity Trust is a leader in the self-directed IRA industry, with more than $30 billion in assets. Equity Trust is regulated as a South Dakota trust company and complies with all statutes and regulations mandated by the South Dakota Division of Banking. Their financial statements are audited annually by an independent certified public accountant, in accordance with AICPA professional standards.

The best crypto IRA is one that combines flexibility, low fees, military-grade security, and a wide variety of coins. My Digital Money is designed to offer exactly that. Whether you prefer a crypto Roth IRA or traditional IRA crypto account, our platform supports both.