Bitcoin IRA who has it? Would you get it?

[QuarterMillionMan]

I've been looking to open a bitcoin Roth IRA for 2022. Disclaimer, you won't find this on Bitcoin IRA's website, I had to go thru their sales pitch and requested an email pdf of fees which are quite high (about 10% when opening an account). The next cheaper option is iTrust Capital with 1% transaction fees and $29.99 monthly maintenance fee.

[bjl584]

Personally, I wouldn't. At least not right now. I really don't understand crypto or how it works.
So, to set up an IRA based on it doesn't seem smart for me.

If you are into crypto, understand it, and believe in it long-term, then I see no reason to not do it.

[disneysteve]

Those fees are ridiculous. I wouldn’t do that even if I want to put money in crypto.

[QuarterMillionMan]

9% of a $7000 max contribution (over 50 yrs old) = $630 they’d take just to start for Bitcoin IRA. ITrust Capital is a little better at $30 x 12 months = $360 a year plus 1% transaction fee of $7000 = $70, for a total of $360 + $70 = $430 to start. I love bitcoin but these fees are ridiculous as disneysteve mentioned.

[kork13]

It's basically a self-directed IRA that happens to be holding crypto. Realistically, those fees are always going to be higher than a basic brokerage IRA. Not sure those listed here are totally "normal", but it's probably within the range.

And no, definitely not wasting or risking my retirement assets or my IRA "space" with crypto.

[QuarterMillionMan]

Trade Station is much better. I think I found what I was looking for (lol).

[QuarterMillionMan]

My safest investment would be to buy $7000 in USDC stable coin and get the 6%. But I'm not sure what the loan to Galaxy Digital entails in the fine print. If Galaxy defaults on the loan does that mean I lose my $7000, if that is the case I don't want the 6%, and I rather get bitcoin and no loans nor 1%.

[QuarterMillionMan]

[rennigade]

This is as good idea as spending $500k to renovate a 100 year old house.

[QuarterMillionMan]

Ha-ha.

[Thrif-t]

I learned of Bitcoin IRA on a podcast and went through the steps of opening an account, but then when I saw the fee's I stopped. I felt it was too much. I'm just going to wait. I "think" I heard there might be some legislation coming down the pike that will allow us to hold cripto in our regular Roth Ira's at some point.

[QuarterMillionMan]

Just like Thrift-t, I opened an acct with Trade Station but I haven't funded it yet. I'm waiting until 2022 to fund it. In the meantime Trade Station gave $10 free crypto and keeps sending emails to fund the acct. I just got this email of bonuses. So in 2022, I'll make the max contribution, $6790 and get free $200 + free $10 to total $7000 in my IRA, pretty sweet deal. I wish the IRS would allow $10,000 max contribution or more.

[QuarterMillionMan]

So Mr. Rennigade is it still a bad idea (lol).

[rennigade]

So Mr. Rennigade is it still a bad idea (lol).

That bonus reward just doesn't entice me. I just signed up for another credit card that after spending $3k I get $500...of course there's a $95 annual fee but I'm out of credit cards to churn at the moment.

I haven't looked into the fees but crypto scares me. Some people are making a boat load from it while others are loosing their shirts. I still like the idea of a decentralized banking system though. Crypto is still better than stupid nfts, and people are also making a mint from those.

[QuarterMillionMan]

My profit from cryptos at one point could have bought a new Jeep Cherokee at $37,000. But with the recent drops now maybe I can buy a new Nissan Sentra for $25,000 which is still good but not as good as it once was.