Investing your retirement savings in cryptocurrency with Roth IRAs is a smart decision that can give you many tax advantages.
These are unique retirement savings vehicles that allow you to invest money tax-free. By trading cryptocurrency with a Roth IRA instead of common exchanges, you can enjoy many of the same benefits as traditional investments, but with added security and flexibility.
The advantage of Alto CryptoIRA for US customers is that it’s a unique self-directed IRA provider that enables crypto IRA investing with ease. This opens up a new world of investment opportunities and diversification strategies for individuals looking to secure their financial future with non-traditional strategies.
In this article, we will take an in-depth look at what it might look like for you to open your own new Alto CryptoIRA, including fees, investment options, security measures, and customer support to help you determine if it is the right crypto self-directed ira for you.
What is Alto Crypto IRA and Who Is It For?
It is a cutting-edge platform for retirement savings, established in 2018 by Alto Global Management LLC, in response to a growing demand for a self-directed ira provider that could make alternative investments easier.
The founder and CEO of Alto, Eric Satz, recognized the limitations of traditional IRA options and wondered if it was possible for individuals to use their tax-advantaged retirement funds in cryptocurrencies. This led to the creation of Alto IRA, a self-directed IRA platform that streamlines the process of investing in alternative assets. Two years later, Alto CryptoIRA was introduced as a specialized version of the platform, exclusively for customers that wanted to put their retirement funds in crypto.
Alto IRA vs Alto CryptoIRA: What is the Difference?
These are two different account types that enable investing in different asset classes. While Alto IRA facilitates a broad range of alternative investments, such as precious metals, private equity, fine art securities, non-public securities, and pre-IPO shares, Alto CryptoIRA specializes in providing access to over 200 different cryptocurrencies through Alto’s dashboard on the online trading platform, with more being added.
How Alto CryptoIRA is a Game-Changer for Retirement Investors
With Alto Crypto IRA, individuals have a secure and convenient option for maximizing their retirement savings through investment in the growing digital asset market.
The purpose of the trust is to provide shareholders in the United States (excluding Hawaii) with exposure to the mainstream cryptocurrency markets while providing them with the protections and benefits of an IRA account.
Traditional Roth IRA providers often have limited investment options, typically restricted to stocks, bonds, and mutual funds. Alto’s CryptoIRA platform allows individuals to make cryptocurrencies a part of their retirement savings portfolio. This opens up new avenues for diversification and investment strategies, giving individuals the ability to potentially maximize their retirement savings through investment in a growing and innovative market.
Whether you’re a seasoned investor looking for a way to gain exposure to the growing cryptocurrency market, or you’re just getting started and want to try a crypto investment account that enables tax advantages, Alto CryptoIRA could be perfect for you.
The Benefits of Investing in Crypto with Alto CryptoIRA
Investing in crypto with Alto enables a wide range of benefits and important features investors appreciate, including a large selection of cryptocurrencies, tax sheltering, 24/7, on-the-go trading, low, transparent fees, market and limit orders, and secure storage options. These benefits make Alto Crypto IRA an attractive option for individuals looking to invest in crypto in their Roth IRA or Traditional IRA to maximize their retirement savings.
Earn More Tax-Free
First and foremost, crypto IRAs are tax-advantaged retirement accounts that provide many benefits that are not available with traditional IRA accounts. With a self-directed IRA, individuals can use their tax-sheltered retirement funds to allocate a portion of their portfolios into cryptocurrency. This means that they can avoid capital gains taxes on their crypto earnings and take advantage of other tax benefits enjoyed by traditional IRAs, Roth and SEP IRAs.
Convenient Trading Experience with 24/7 Availability
An account provides individuals with the ability to buy and sell crypto anytime, anywhere. The platform offers real-time trading on any web browser (desktop or mobile) for on-the-go access).
This allows individuals to take advantage of market opportunities as they arise, without having to wait until business hours.
Compared to other self-directed IRA accounts, Alto’s 24/7 trading capabilities set it apart in terms of convenience and accessibility. Not all platforms have real-time trading features or mobile apps, which can limit the accessibility of an investment portfolio. With these flexible investment options and features, investors have the peace of mind of knowing they can manage their portfolios and make trades from anywhere, at any time.
Gain More Control with Market and Limit Orders
Investors love being able to place both market orders at current prices and limit orders to buy or sell at a future price. This provides individuals the flexibility to trade crypto based on their investment goals and risk tolerance.
Cryptocurrency Options On The Platform
You have more chances to tap into potential future gains with Alto because of its large and diverse range of cryptocurrencies, providing individuals with the ability to ta variety of alternative investments that align with their goals and strategies.
What coins can be held in the Alto CryptoIRA? Choose from Over 200 Cryptocurrencies
Alto is the only crypto IRA that offers investors access to over 200 different cryptocurrencies through its integration with Coinbase. This offers a wide range of investment options and the ability to diversify an individual’s portfolio.
Essentially, instead of opening a separate Coinbase account, you can access its offerings and make trades through the platform.
Choose from established cryptocurrencies such as Bitcoin and Ethereum to an extensive list of altcoins (these up-and-coming digital assets have high growth potential). In addition, the platform regularly evaluates and adds new cryptocurrencies to its investment offerings, giving individuals the ability to stay on top of the latest developments in the digital asset market.
Not all coins are available in every jurisdiction. See details on their website explaining each coins’ description. Some coins and tokens are available for limit orders only.
With its wide range of investment options, individual investors enjoy the flexibility and choice needed to build a well-rounded and diversified portfolio for their retirement savings.
Fees: Understanding How Much It Costs For a Cryptocurrency IRA
It is important for individuals to understand the fees associated with their holdings, as they can impact the overall return on investment.
Affordable and Transparent Fees
Unlike many crypto IRA companies, Alto does not charge hidden fees or impose high minimums. Instead, it offers a straightforward, transparent fee structure on crypto transfers that makes it easier for investors to understand the costs associated with their investments.
What are Alto CryptoIRA Fees For Roth IRA Crypto Retirement Accounts?
- There are no fees associated with opening an account or monthly management fees
- You’ll incur low fees if you close your account or request an outbound wire transfer to send funds to another bank account.
- Closing account: $50 fee
- Outbound wire transfer: $25 fee
- Unlike many other companies, there are no ongoing account or custodial fees
- You’ll only pay a trade fee of 1% for each buy or sell order
Compare Fees with Other Roth IRA Providers
It is important to compare the low fees associated with Alto to get a better understanding of the costs of investing.
In general, traditional Roth IRA providers charge fees that are similar to those of Alto, but they may differ in terms of the specific fees assessed and the amount of the fees.
For example, Bitcoin IRA charges a setup fee, a 2% trading fee, and monthly management fees in comparison. It was one of the earliest to the space and many newcomers have entered the market trying to differentiate from its huge value proposition (paying monthly interest for additional earnings).
It is recommended to review the fees associated with all crypto IRA providers to determine which option is the best fit for an individual’s investment goals and budget.
Security: Protecting Your Crypto For Peace of Mind
Security is a crucial aspect of retirement planning, as it helps to protect an individual’s investments and ensure that they are able to accumulate savings for the future.
Security measures play a critical role in ensuring safety and stability. When choosing a Roth IRA provider, it is important to review the security measures in place and consider the impact of security on the overall investment portfolio.
Overview of Security Measures
Client portfolio security is of the utmost importance. The platform employs several measures to ensure the safety and security of accounts, including secure storage of funds in cold wallets, multi-factor authentication for access to accounts, and regular security audits. They also provide insurance coverage, offering additional peace of mind in the event of any unforeseen circumstances.
Secure Crypto IRA Storage with FDIC-Insured Cash Holdings
Alto IRA for crypto offers secure storage of assets, with FDIC-insured accounts for cash holdings and hot and cold storage options for crypto holdings. This provides peace of mind for individuals looking to include crypto IRA investing in their retirement strategy.
FAQ’s
On your hunt for the best crypto ira providers, consider these common crypto IRA investing questions and key areas of consideration.
What Are Alternatives?
Some alternate competitor crypto IRA providers are also a great choice to consider like Bitcoin IRA, iTrustCapital, My Digital Money, Rocket Dollar, BitIRA, Choice, and other self-directed IRAs generally don’t have crypto-specific platforms but can handle trades by phone during business days.
How does Alto compare to Bitcoin IRA?
BitcoinIRA has a higher crypto trading fee but also has an edge in terms of its unique Bitcoin IRA Earn feature that allows investors to earn up to 6% APY on their cryptocurrency holdings.
This feature is particularly attractive to those looking to maximize their returns on their investments, as it provides a way to earn passive income without having to actively trade or sell assets. With the current low-interest rate environment, earning 6% APY is a significant advantage for investors looking for a higher return.
However, it’s worth noting that the interest-earning offering is limited to Bitcoin, Ethereum, and cash. Alto still offers a wider range of cryptocurrencies, making it a more diversified option for investors seeking to diversify.
What is the difference from Rocket Dollar?
It’s worth noting that the main difference between Rocket Dollar and Alto is that opening an LLC to manage your self-directed IRA is required. This has its benefits but also adds extra maintenance. It has more options and Rocket Dollar ability to “bring your own deal”.
Does Alto compare to iTrustCapital?
Yes, it compares, with similar 1% trade fees and no monthly maintenance fees, but has many hundreds more tokens to choose from.
Who Is Eligible To Open an Alto CryptoIRA Account?
This account is open to all U.S. citizens and permanent residents who are at least 18 years old and have a valid Social Security Number. In addition, you must have a qualifying income and meet certain other eligibility requirements.
What Is The Account Minimum?
The minimum to open a retirement account at many companies is usually rather high, but you can get started with a $10 account minimum, so it’s within reach for just about everyone eligible to participate. Even traditional IRA accounts often require more.
How Does Alto Crypto IRA Work?
With the setup of your Alto IRA account for cryptocurrencies, you have the option to either transfer funds directly from your personal bank account via ACH or roll over assets from a prior retirement account, thereby allowing you to begin investing in digital assets on the platform.
You’ll be able to choose from over 200 cryptocurrency assets, all thanks to their Coinbase integration, Alto IRA is able to provide a huge selection. This plan includes investment opportunities in various crypto fund partners and blockchain startups.
What are other Alto alternative investment options?
There are other account types for investing in different funds on Alto’s site. Alto’s new Cryptoira was created after Alto’s main IRA had been on the market, which enables investors to explore alternative self-directed options.
Alto IRA’s various investing partners allow alternative assets such as artwork, crowdfunding, farmland, fine wine, music royalties, real estate, sports, startups, private equity, and venture capital (usually limited to accredited investors and not generally available to the public).
Alto IRA provides access to different crypto fund partners and blockchain startups such as Grayscale Bitcoin Trust or Ethereum Trust. However, the partners may have varying investment minimums, with many starting at $5,000 to $25,000, which can be a downside for beginner investors.
Can I invest in gold or silver?
It doesn’t appear that you can buy or sell gold or silver in the same account as your crypto. You’d have to open a separate Alto IRA account.
What is an Alto IRA account?
Alto’s regular IRA account is a self-directed individual retirement account. Current account options include enabling customers use their tax-advantaged retirement funds in precious metals, securities in fine art, and other non-public securities and pre-IPO shares.
With an Alto IRA, customers have complete control over their retirement holdings, allowing them to tailor their portfolios to their specific investment goals and preferences. The platform streamlines the self-directed IRA process, making it easier for individuals to give alternative assets a try and grow their retirement savings.
How Much Does Alto IRA Cost?
Alto supports clients with a variety of options and has a different cost structure for each account type. Alto’s regular IRA that opens up access to other asset classes outside of crypto will have a $10/mo account fee or $100/year (because it doesn’t incur a crypto trading fee).
What are the customer service hours and contact details for Alto CryptoIRA?
You can contact the Alto IRA customer service team by calling (877) 673-1557 during the week, Monday through Friday during customer service hours of 8 AM to 5 PM (CT). The team can assist with inquiries or issues. Additionally, customers can also access various resources and support tools on Alto CryptoIRA’s website to help them manage their accounts and investments.
How to Get Started
There are dozens of cryptocurrency exchanges, but don’t start there if you’re wanting to save crypto taxes by leveraging a Roth IRA.
Start by first opening a user account at Alto IRA with your best email address. Once you have an account, you can deposit funds into your Roth by sending them to the account’s designated address.
A lot of funding methods take 7 to 8 business days to process, though rollovers and transfers can take much longer.
At present, one limitation is that transferring assets from your own crypto wallet is not yet supported, though it would be a valuable addition to the platform in the future.
You will then be able to trade all of the cryptocurrencies that Alto supports from your account and enjoy all of the same tax benefits as the traditional route. And you can contact an Alto team member if you need help.
