Investment Options
Invest in Digital Currency Through Your Self-Directed IRA
A Self-Directed IRA can provide access to eligible digital currency investments while keeping those assets within a tax-advantaged retirement account.
Preferred Trust provides the custody and account administration needed to hold supported digital assets through a Self-Directed IRA.
Self-Directed IRAs can hold certain alternative investments, including supported digital currencies. Preferred Trust has provided digital currency custody for Self-Directed IRA clients since 2017.
Broader Investment Choice
Access supported digital assets as part of a broader Self-Directed IRA investment strategy.
Retirement Account Structure
Hold eligible digital currency within an IRA rather than through a personal trading account.
Retirement Account Admin
Preferred Trust handles the custody and administration required to hold supported digital assets within your IRA.
Digital currency involves substantial risk and price volatility. Preferred Trust does not recommend, evaluate, or endorse digital currency investments.
Custody
Security Starts With How Assets Are Held
Our digital currency custody model uses cold-storage wallet technology designed to keep supported digital assets separate from everyday online trading environments.
Self-Directed IRA
Holds the retirement funds
Digital Currency Purchase
Executed on your instructions
Unique Wallet Address
Assigned to the IRA
Cold Storage Custody
Assets held offline
No custody approach can eliminate all cybersecurity or technology risk. Investors should consider those risks before directing an IRA to purchase digital currency.
Supported Assets
Digital Currencies We Support
Preferred Trust currently supports custody for a select group of digital currencies.
Bitcoin
Ethereum
Solana
Cardano
Litecoin
Bitcoin Cash
Ethereum Classic
Dogecoin
Stellar
TRON
ZCash
XRP
BNB
Supported assets and custody requirements may change. Investors should confirm current availability with Preferred Trust before submitting an investment request. This list is not a recommendation or endorsement of any digital currency.
Process
How Digital Currency Investing Works
01
Open or Fund Your SDIRA
Establish a Preferred Trust Self-Directed IRA and fund it through an eligible transfer, rollover, or contribution.
02
Choose a Supported Digital Currency
Determine which supported digital asset you want your IRA to purchase and conduct your own due diligence.
03
Submit Your Investment Instructions
Complete the required Preferred Trust digital currency purchase documentation.
04
Preferred Trust Processes the Transaction
The transaction is processed through the applicable trading platform using IRA funds.
05
Assets Move to the IRA Wallet
The purchased digital currency is transferred to the IRA’s wallet and held in custody.
Preferred Trust currently uses Coinbase for supported purchases and sales. Trading platforms and procedures may change.
Account Access
Keep Track of Your Holdings
Digital currency holdings appear within the Preferred Trust online account portal alongside other account information.
Digital asset values in the Preferred Trust portal are updated periodically and are provided for account reporting purposes.
Investors may also use the wallet address associated with their holdings to view applicable blockchain transaction information through a blockchain explorer.
Client Portal
- Digital currency holdings
- Estimated asset values
- Account information
- Transaction history
- Other Self-Directed IRA assets
Risk
Digital Currency Requires Careful Due Diligence
Digital assets can experience significant changes in value and involve risks that differ from traditional investments. Investors are responsible for evaluating those risks before directing their IRA to purchase digital currency.
Price Volatility
Digital currency prices can change significantly over short periods of time.
Liquidity
Market conditions may affect an investor’s ability to sell an asset at a desired price or time.
Technology Risk
Digital currencies rely on blockchain networks, wallets, exchanges, software, and other technology infrastructure.
Regulatory Risk
The regulatory and tax environment surrounding digital assets continues to evolve.
Liquidity
Plan for Liquidity and Distributions
Digital currency does not generate cash simply by being held. Investors should maintain sufficient IRA liquidity for fees, transaction costs, and distributions. Supported assets may generally be sold through the IRA, and certain distributions may be taken in kind, subject to applicable requirements.
Roles
You Make the Investment Decisions
Your Role
- Select the digital asset
- Conduct due diligence
- Evaluate risk
- Provide buy or sell instructions
Preferred Trust’s Role
- Custody the IRA
- Process properly documented instructions
- Maintain account records
- Facilitate eligible transactions
- Complete applicable IRA reporting
Frequently Asked
Digital Currency IRA Questions
Can I hold Bitcoin in a Self-Directed IRA?
Which digital currencies does Preferred Trust support?
Can I keep IRA-owned cryptocurrency in my personal wallet?
Can I buy and sell digital currency?
Can I see my digital currency holdings online?
Does Preferred Trust recommend which cryptocurrency I should buy?
Get Started
Interested in Holding Digital Currency in Your IRA?
Learn how a Preferred Trust Self-Directed IRA can provide access to supported digital assets within a retirement account.