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How to Choose a Secure Crypto Custodian

A digital key points to a shield protecting a Bitcoin coin.

The Keys to Secure Crypto Custody

In light of recent cryptocurrency events including the FTX bankruptcy, many crypto traders are asking how to find a secure crypto custody solution. Cryptocurrency security is especially important for long-term crypto investors who seek to protect their hard-earned nest eggs for their golden years.

Whether you’re a trader, investor, or both, we’ve shown how to secure crypto in your retirement account with cold storage wallets, industry-leading custody protection and insurance.1 Now, let’s take a closer look at how to evaluate a custody solution, including selecting a qualified custodian, safe digital wallets, and digital asset insurance.

How to Choose a Qualified Custodian 

Crypto enthusiasts want to secure their crypto with custodians they can trust to keep their digital assets safe. But savvy investors and crypto traders know that not all custody is created equal. A “qualified” custodian isn’t only competent in the generic sense of the word – they also have met stringent standards defined by regulators to protect funds against loss. Qualified custodians are regulated entities that have a fiduciary duty to their clients and hold their funds in segregated accounts. They must pass audits and may also obtain certifications that verify their services.

Key criteria for choosing a custodian include:

  • Qualified custodial services
  • SOC 2 Type 2 certification
  • Trusted across the industry

How to Choose a Safe Digital Wallet 

Another key to secure crypto custody is choosing a technology provider who partners with a custodian that stores your crypto in safe digital wallets. The safest digital wallets are cold-storage wallets. Although hot storage wallets may make funds easily available for quick trades by storing keys online, since the keys are kept over the internet, they can fall prey to thieves.

In contrast, cold-storage wallets store keys offline, creating a barrier for hackers. Cold-storage wallets are ideal for long-term investments, such as retirement savings, because of this extra layer of protection in storing digital assets.

Key criteria for choosing a digital wallet include:

  • Offline, cold-storage
  • Multi-key security
  • Two-way authentication

How to Choose Digital Asset Insurance 

Crypto investors seeking the most secure crypto custody may look for a company that offers digital asset insurance. Not all firms offer this type of insurance, and it may be offered at different levels to protect against theft, loss, or misuse.1

Key criteria for choosing digital asset insurance include:

  • Availability of coverage
  • Amount of coverage
  • Areas of coverage

Secure Crypto Custody for Retirement Investing 

It’s important to make an informed decision when choosing where to invest your crypto. Over 170,000 users trust Bitcoin IRA,2 the world’s first platform for cryptocurrency IRAs. The company offers secure crypto custody,1 empowering you to trade and invest securely for retirement with a user-friendly mobile app and over 60 cryptocurrencies.

Bitcoin IRA partners with US-based firm, BitGo Trust Company, Inc., to seamlessly provide qualified custodial services for crypto IRAs and crypto retirement accounts. BitGo is SOC 2 Type 2 certified to meet strict standards for both information security and data integrity.

Recognized as an industry leader, BitGo was recently selected as the custodian for FTX’s remaining assets while bankruptcy proceedings are underway. In addition, BitGo was also chosen as the official wallet provider for Nike. BitGo is one of the world’s most secure and compliant digital asset custody solutions with a mission to “deliver trust in digital assets.”

Cold-Storage Wallets and Digital Asset Insurance  

Bitcoin IRA also partners with BitGo, the leading cold storage provider, to offer proprietary cold-storage wallets.1 The wallets provide military-grade, multi-key security protecting against any single point of failure. BitGo holds digital assets in qualified custody wallets where the assets are in segregated accounts. Segregated funds are kept separate and not mixed with other funds. While BitGo holds the assets, they cannot be used by BitGo.

Adding to its security features, Bitcoin IRA offers crypto IRAs with industry-leading custody insurance. Assets are insured for up to $250 million with BitGo and their insurance provider Lloyd’s of London, the world’s specialist insurance and reinsurance market.1 BitGo was one of the first companies to secure insurance coverage for digital assets.

Cryptocurrency security is a key priority for crypto traders and investors, and getting started with a trusted provider can offer peace of mind.

1Security, storage, wallet providers, and insurance may vary based on asset chosen and custody solution available.

2Alternative IRA Services, LLC dba Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. Self-directed purchases processed through Bitcoin IRA have not been endorsed by the IRS or any government or regulatory agency. Bitcoin IRA is not an adviser. Information contained on this website is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you. Cryptocurrencies are very speculative and involve a high degree of risk. By using the website, you understand the information being presented is provided for informational purposes only and agree to comply with our Terms of Use and Privacy Policy.


Questions on getting started with cryptocurrency investing in your Bitcoin IRA account? Our specialists are here to help! Call us at 877-936-7175 or email us today.

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