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BitcoinIRA Fees: Top Things to Know in 2024

In this guide, we uncover BitcoinIRA fees and expose hidden costs and complex jargon. We’ll go over BitcoinIRA custodial, management, onboarding, trading, and security fees in May of 2024.

Drew
Drew
Mar 4, 2024March 4, 20247 min read7 minutes read

Bitcoin and crypto IRAs have become a big deal for millions of American’s planning for retirement.

So, which is best in 2024?

In this article, we uncover all the enigmatic fees of BitcoinIRA, including custodial, management, and account maintenance fees, along with onboarding, funding, transfers, trading, transaction, and security fees.

Quick Facts About BitcoinIRA

Not all BitcoinIRA providers are created equal. BitcoinIRA has received flak for its sneaky fees, concealed in fine print and complex jargon.

Account Mminimum: $3,000
Investment Options: +60 cryptocurrencies
Fees: 2% plus 5.99% setup fee + 0.08% monthly fee with a $100 minimum
Custody Provider: BitGo Trust
Trustpilot Rating: 4.3/5 from 28 reviews
Apple App Store: 4.5/5 from 964 reviews
Google Play Store: 4.4/5 from 1.95k reviews, +100,000 downloads

BitcoinIRA Trustpilot Rating
  • Founded in 2016

  • Headquartered in Sherman Oaks, California

  • Assets: $2 billion of assets in custody

What people like about it

  1. Ability to invest in various alternative cryptocurrencies all from one IRA account

  2. Been in business since 2016

What people dislike about it

  1. Hidden fees

  2. The volatility and risk of various cryptocurrencies promoted

  3. Regulatory uncertainty surrounding cryptocurrencies platformed

  4. Limited investment options to Bitcoin and cryptocurrencies only vs. traditional IRAs

Swan Bitcoin IRA

Swan Bitcoin IRA

Bitcoin is the ultimate asset for your retirement. Create a tax shelter for exponential returns! Get started in less than 2 minutes. Book a call with one of our Bitcoin IRA specialists today!

Schedule a Call

BitcoinIRA Hidden Fees

In the following section, we will meticulously dissect the fees within the realm of BitcoinIRA, totaling an astonishing 8%, covering everything from account setup to trades and transactions, equipping you with the knowledge needed for informed decision-making.

When it comes to fees, BitcoinIRA leaves much to be desired in terms of transparency. They make it difficult for investors to get a clear picture of their fee structure, forcing them to reach out to representatives for more information. 

This approach can be bothersome since many other Bitcoin IRA providers like Swan Bitcoin readily provide comprehensive fee information online.

Custodial, Management, and Account Fees — 1%

BitcoinIRA annually charges a custodial fee of 1.00% for the custody of clients' portfolios.

These fees are typically calculated as a percentage of the total value of the assets held in the IRA.

Investors should carefully consider these fees, as they can accumulate over time and significantly impact the overall returns and review the fee structure to understand how it may impact their long-term returns.

Setup Onboarding Fee — 0.99% to 4.99%

BitcoinIRA allows users to convert their existing IRAs into cryptocurrency IRAs. BitcoinIRA has a one-time service fee that it charges up front, ranging from 0.99% to 4.99%.

These fees are substantial, and among the highest of any BitcoinIRA provider. In contrast, Swan Bitcoin charges 0% to onboard and transfer funds. 

Transaction Fee — 2%

BitcoinIRA charges a 2% transaction fee which is incurred when executing transactions within the BitcoinIRA platform.

This includes buying or selling Bitcoin or other cryptocurrencies, transferring funds, or conducting other transactions related to managing the IRA account.

It’s important for investors to be aware of these transaction fees as they can impact the overall cost and potential returns of their cryptocurrency investments within the Bitcoin IRA.

Security Fee — 0.8%

These fees cover the costs of implementing robust security measures, employing encryption technologies, maintaining secure storage facilities — helping provide peace of mind to investors by mitigating the risks of hacking, theft, or unauthorized access to their digital assets within the BitcoinIRA platform.

BitcoinIRA Promoting Risky Altcoins and Lawsuits

Despite branding itself as a Bitcoin IRA company, BitcoinIRA promotes +60 cryptocurrencies and alternative assets within its crypto IRA platform. Adding to the scrutiny, the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against major cryptocurrency exchanges such as Binance and Coinbase.

In these legal actions, the SEC has explicitly identified around 67 alternative cryptocurrencies that it considers unregistered securities. Interestingly, many of these tokens are included in BitcoinIRA’s product offerings.

This alignment of the SEC’s concerns with BitcoinIRA’s portfolio raises further questions about the company’s compliance with regulatory requirements and the potential risks investors face.

BitcoinIRA Fees vs. Swan Bitcoin IRA Fees Example

While a 5.99% fee might not seem like much to the casual investor, the difference is extraordinary over a decade and multi-decade periods. 

Swan IRA vs. BitcoinIRA Fees

BitcoinIRA: 5.99% per deposit fee
Swan Bitcoin IRA: No deposit fee

If I deposit $6,000 annually into BitcoinIRA’s product, instead of Swan, what is the % difference over twenty years from deposit fees alone?

BitcoinIRA 

Fee per deposit = $6,000 × 5.99% = $359.40 
Number of deposits over 20 years = 20 deposits (assuming one deposit per year)
Total fees paid for BitcoinIRA = $59.90 / deposit × 20 deposits = $7,188

Swan Bitcoin IRA

No deposit fee, so the total fee paid for Swan Bitcoin is $0…

Total fees for Swan Bitcoin / Total fees for BitcoinIRA × 100
Percentage difference = ($7,188 — $0) / $7,188) × 100

Percentage Difference: ≈100%
Dollar difference:
$7,188

Recent Developments

On November 15th, BitcoinIRA announced a strategic acquisition of Shrimpy.io.

Shrimpy.io. allows users to connect your exchanges and wallets to completely transform the way you invest in crypto. 

BitcoinIRA’s Upgraded Platform Features

Portfolio rebalancing: Clients will be able to automate asset reallocation to consistently align their portfolio with their retirement objectives.

Recurring buys: Clients will get access to tried-and-true investment tactics, reimagined for the digital investment landscape.

Conditional orders & stop loss orders: Instill an extra layer of security to shield your investments from drastic market downturns.

Trade history downloads & advanced reporting: Gain an unparalleled depth of insight into your investments with comprehensive analytics and transparent reporting.

Let’s Wrap Up 

In a nutshell, BitcoinIRA’s fee structure is a cause for concern, primarily due to its startling lack of transparency and exorbitant fees that can reach as high as 8%. This combination of hidden costs and sky-high fees can significantly impact an investor’s returns and hinder their ability to achieve their financial goals.

It’s imperative for individuals to carefully evaluate and compare fee structures among different IRA providers to ensure they are making informed decisions and maximizing the potential of their investments.

In contrast, Swan prioritizes transparency, offering clear and comprehensive fee breakdowns upfront.

By choosing a provider that values transparency and provides a clear understanding of costs, investors can make more informed decisions and have greater confidence in their Bitcoin IRA investments.

Swan is a leading Bitcoin financial services company with more than 120,000 clients and 170 employees, operating globally. Established in 2019, Swan helps individuals and institutions to understand and invest in Bitcoin. The Swan app simplifies Bitcoin purchases with instant and recurring buys. Swan IRA provides a tax-advantaged solution for saving Bitcoin in retirement accounts.

For HNWIs and businesses, Swan Private provides white-glove service for large purchases, treasury solutions, and employee Bitcoin benefits. With Swan Vault, clients can easily custody their own Bitcoin with peace of mind. Financial advisors trust Swan Advisor for client Bitcoin allocations, backed by world-class custody and educational content.

Swan Managed Mining provides clients with fully segregated and dedicated mining operations, catering to their unique requirements, opportunities, and strategic advantages. Swan prides itself on exceptional client service, making Bitcoin accessible to all. For more information, please visit swan.com.

Drew

Drew

Drew, a class of 2013 Bitcoiner, is a Research Analyst for Swan Bitcoin.

He has worked in institutional VC/PE, FinTech, and DLT consulting for over six years. He also brings over twelve years of experience working with national nonprofits and start-ups in education and software development in several leadership roles.

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