Digital Currency with an IRA
Invest in popular digital currency with your IRA on Equity Trust’s Digital Asset Platform
You can now invest your IRA in Bitcoin and other popular digital currencies (also referred to as cryptocurrency) on Equity Trust’s digital asset platform – a robust and user-friendly platform backed by industry leading security protocols.
Investments within a self-directed IRA can grow in a tax-advantaged environment, allowing you to build future wealth. Below are some frequently asked questions about investing in a self-directed IRA in Bitcoin, or other cryptocurrencies, and Equity Trust’s digital asset platform.
FAQs about investing IRAs in Digital Currency
What is Digital Currency (or Cryptocurrency)?
A digital currency is designed to work as a medium of exchange.
To do this, it uses cryptography to secure and verify transactions as well as control the creation of new units of a currency.
Essentially, digital currencies are limited entries in a database that no one can change unless specific conditions are fulfilled
What are potential benefits of using an IRA to invest in digital currency?
A possible benefit of investing digital currencies with an IRA includes the potential tax advantages of using a qualified retirement account.
What types of digital currencies are available on Equity Trust’s digital asset platform?
Equity Trust Company currently supports the following currencies to be held in your self-directed account:
How do you get started on the Equity Trust digital asset platform?
There are three steps to getting started:
Open and fund an Equity Trust account. You can open the account using our online application.
Complete the digital asset platform disclosure. It includes critical information about digital currency risks and associated fees.
Begin purchasing digital currency. You can begin buying and selling digital currency. Note: The platform does not allow users to use digital currency to purchase goods/services.
How long does it take to purchase and for a transaction to settle?
After your digital asset transaction is submitted through the Digital Asset Platform, the transaction will settle on the trade date plus one (“T+1”), or next day settlement.
How secure is my digital currency and where is it held?
Equity Trust’s digital asset platform has industry leading security protocols, including multi-factor authentication for platform access and multi-signature wallet access verification. Your digital currency will be held in a secure offline “cold storage” vault that is not connected to internet. We partnered with Vo1t, a digital asset custodian, who uses cybersecurity best practices to create a secure vault for your assets.
What is Equity Trust Company’s role in the process?
Equity Trust Company facilitates the purchase and sale of digital currencies.
During the purchase process, Equity Trust ensures the funds are pulled from your IRA and used to purchase digital currency from a digital currency liquidity provider (Genesis Global Trading) or exchange. After the purchase is made on the exchange, Equity Trust ensures your currency is safely and securely sent to a digital asset vault (Vo1t), and your assets are properly recorded within your IRA account;
During the sale process, Equity Trust ensures that the digital currencies requested to be sold are pulled from the secure vault (Vo1t), and sold with a digital currency liquidity provider (Genesis Global Trading) or exchange. Equity Trust receives the cash proceeds from the sale and places the funds into your IRA account.
What are the fees associated with Equity Trust’s digital asset platform?
Low minimum balance to get started, including no "transfer in" fee, and one low platform establishment fee regardless of account size. See the entire fee schedule for details.
What are Genesis commissions?
Genesis does not charge a commission on any transaction. Rather, you will be quoted a spread to the index that is competitive with the market. The price quoted is net to the counterparty and there are no additional fees charged by Genesis.
Fill out the form below to discover more or call our digital team at 855-372-3289!
Prior to making any investment decisions, please consult with the appropriate legal, tax, and/or investment professionals for advice. As a self-directed IRA custodian, ETC will not provide investment advice or risk assessment of any investment. The digital currency market may experience a high degree of volatility and clients should consult with an investment professional before any investment is made.