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What Types of Crypto Can You Hold in Retirement Accounts?



As the virtual currency market continues to grow, the range of cryptocurrency options expands alongside it. For investors, crypto IRA (Individual Retirement Account) companies present a compelling opportunity to include cryptocurrencies within their retirement portfolios. To choose the most suitable crypto IRA provider, it is important to evaluate key features including the variety of available cryptocurrencies, the availability of educational resources, and the fee structure. Conduct thorough research on different types of cryptocurrencies to gain a comprehensive understanding of how they can potentially enhance your investment portfolio.


Can You Hold Crypto in a Retirement Account?

It is indeed possible to include cryptocurrencies in a retirement account, such as a crypto IRA or a 401(k). A crypto IRA, specifically, is a type of individual retirement account (IRA) that allows for self-directed investing. Within this arrangement, known as a self-directed crypto IRA (SDIRA), you have the ability to hold virtual currencies. While it is not yet a widespread practice for most IRAs to accommodate cryptocurrencies, certain companies, such as Bitcoin IRA, specialize in offering crypto IRAs designed specifically for holding digital assets. SDIRAs can function as either a crypto Traditional IRA or a crypto Roth IRA.

Currently, the number of companies providing retirement accounts that accept cryptocurrency holdings is limited. Nevertheless, one noteworthy advantage of placing crypto in a retirement account, be it a 401(k) or a cryptocurrency IRA, is the potential tax benefits associated with both account options. Before making the decision to include cryptocurrencies in your retirement account, it is imperative to assess your individual risk tolerance and align your investment goals accordingly.


Understanding Cryptocurrency IRA Companies

Cryptocurrency IRA companies provide investors with the opportunity to include nontraditional investments, such as cryptocurrencies, within a dedicated retirement account. Engaging with these companies enables further diversification of an already robust retirement portfolio. By investing in crypto through a reputable crypto IRA company, portfolio diversity is bolstered.

The leading cryptocurrency IRA companies demonstrate exceptional expertise in the field of IRAs, coupled with notable security features. When choosing among different crypto IRA providers, it is essential to conduct thorough research on the available cryptocurrencies offered on each platform, the educational resources provided, the security measures in place, and any potential fees associated with the services. Prior to opening an account, it is advisable to engage in conversation with a representative from the crypto IRA company to gain a deeper understanding of how your personal goals align with the features offered.


Top 6 Most Common Types of Crypto by Market Cap

When conducting research on different types of cryptocurrencies, it is important to thoroughly examine factors such as the historical performance, key features, and market capitalization of each crypto. Prior to making any investment decisions, it is crucial to carefully consider the potential advantages and drawbacks associated with each virtual currency.


(Market Cap as of 10/02/23: $548B)

Bitcoin (BTC) emerged alongside blockchain technology during the period of the 2008 financial crisis. Blockchain serves as a system that securely records and tracks various types of information, including transactions. Bitcoin holds the distinction of being the inaugural decentralized virtual currency, laying the foundation for the crypto landscape that followed. It is worth noting that the total supply of Bitcoin is fixed, resulting in a finite amount of this cryptocurrency being available for circulation.


(Market Cap as of 10/02/23: $204B)

Ethereum (ETH) was initially conceptualized in 2013 but took an additional two years to officially launch. Currently, it holds the second position in terms of market capitalization, trailing behind Bitcoin.

Binance Coin

(Market Cap as of 10/02/23: $33B)

Binance Coin (BNB) initially operated on the Ethereum blockchain. Currently, it serves as the native cryptocurrency of the Binance exchange, offering various utility and benefits within the platform.


(Market Cap as of 10/02/23: $28B)

Ripple (XRP) came into existence approximately a decade ago as a pragmatic cryptocurrency. Notably, transactions conducted on the XRP Ledger boast settlement times of less than five seconds, exemplifying its efficiency. Furthermore, Ripple prides itself in maintaining a more environmentally friendly footprint compared to proof-of-work blockchains, thanks to its lower energy consumption. Unlike proof-of-work blockchains, which require substantial power resources to verify new transactions for authenticity, Ripple adopts an alternative approach that reduces energy demands.


(Market Cap as of 10/02/23: $10B)

Solana (SOL) does not impose a predetermined maximum supply of coins. Instead, the number of available coins expands on an annual basis. Solana incorporates a combination of proof-of-stake (PoS) and proof-of-history (PoH) mechanisms to effectively track time during transactions while also capturing transaction details accurately.


(Market Cap as of 10/02/23: $9.3B)

Cardano (ADA) was initiated in 2015 and derives its name from an esteemed Italian mathematician. Notably, it stands as one of the prominent cryptocurrencies that utilizes the proof-of-stake (PoS) blockchain protocol.


Where Can I Invest in Different Types of Crypto?

Investing in various types of cryptocurrencies is indeed possible with the support of a reputable crypto IRA provider. Bitcoin IRA1, for instance, offers a comprehensive platform that facilitates access to over 60 different cryptocurrencies, thereby encouraging individuals to engage in diversified crypto investments. Similar to other asset classes, diversification is highly recommended as it plays a crucial role in building a resilient and robust investment portfolio.


Diversify Cryptocurrencies for a Stronger Retirement Account

Cryptocurrencies present a compelling and relatively untapped opportunity as a retirement investment option. To fortify your portfolio, it is advisable to diversify across different cryptocurrencies. When considering investments, it is vital to conduct thorough research on the historical performance of each crypto, their respective market capitalization, key currency features, and potential upcoming developments. By aligning your investment choices with your portfolio diversification goals and understanding your risk tolerance, you can make informed investment decisions in the cryptocurrency space.


Frequently Asked Questions

Q: Can you invest in crypto with a retirement account?

A: It’s possible to invest in crypto with a retirement account such as a self-directed IRA. Companies such as Bitcoin IRA specialize in self-directed crypto IRAs.


Q: Can a self-directed IRA invest in crypto?

A: Yes, you can invest in crypto with a self-directed IRA. However, you cannot directly contribute current crypto holdings into an IRA.


Q: How many types of crypto are there?

A: The types of crypto have the potential to vary depending on category specifications. Although over 20,000 cryptocurrencies are available, virtual currencies typically fall within two categories such as coins or tokens. A coin usually functions similarly to a currency while a token often indicates ownership.




1Bitcoin 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. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.


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