A Crypto IRA is a self-directed individual retirement account (SDIRA) that allows investors to hold cryptocurrency assets like Bitcoin and Ethereum with tax-advantaged status under IRS rules. By utilizing Traditional or Roth structures, account holders secure tax-deferred growth or tax-free withdrawals while accessing digital asset spot markets via qualified institutional custodians. Feature Crypto IRA Standard Traditional IRA Allowed Assets Bitcoin, Altcoins, Stocks, Bonds Stocks, Bonds, ETFs, Mutual Funds Tax Treatment Tax-Deferred (Traditional) or Tax-Free (Roth) Tax-Deferred (Traditional) or Tax-Free (Roth) Custody Requirement IRS-Approved Institutional Custodian Brokerage / Custodian Trading Access 24/7 Digital Asset Exchanges Standard Market Hours Contribution Limits (2026) $7,000 (Under 50) / $8,000 (50+) $7,000 (Under 50) / $8,000 (50+) How to Open and Fund a Crypto Individual Retirement Account For a step-by-step overview, see our guide on how to execute a Fidelity Crypto Rollover IRA. 5. Execute Asset Purchases: Once funds arrive in your account, access the integrated trading dashboard to buy, sell, or hold approved cryptocurrencies 24/7. Fee Structures, Minimums, and Institutional Custody Costs Provider Type Setup Fee Monthly / Maintenance Fee Trading Fee Structure Minimum Investment Percentage-Based Brokers $0 – $240 $20 – $30 / month 1.00% – 5.00% per trade $3,000 – $10,000 Flat-Fee SDIRA Custodians $50 – $100 $0 – $15 / month 1.00% flat transaction fee $1,000 Checkbook Control LLCs $1,000 – $2,000 $300 – $600 / year Exchange spot fees (0.1% – 0.6%) $10,000+ For a detailed breakdown of account fees, trading costs, and minimum requirements, see our guide to Fidelity Crypto IRA fees and minimums. Crypto IRA vs Bitcoin ETF vs Standard Crypto Exchanges Dimension Crypto IRA Bitcoin Spot ETF Direct Exchange (e.g., Coinbase) Tax Advantage Tax-Deferred or Tax-Free Capital Gains Tax-Deferred or Tax-Free (if in IRA) Taxable Event on Every Trade/Sale Asset Variety Broad Crypto Selection (BTC, ETH, SOL, etc.) Limited to Single Asset (BTC, ETH) Complete Crypto Market Access Custody Control Institutional Custodian (Cold Storage) ETF Sponsor Trust Custody Self-Custody or Exchange Hot Wallet Trading Hours 24/7/365 Stock Market Hours Only (9:30-4:00 EST) 24/7/365 In-Kind Distributions Supported by Select Providers Cash-Only Redemptions Fully Supported Tax Rules, IRS Compliance, and Distribution Guidelines Under IRS Notice 2014-21, cryptocurrency is treated as property for federal tax purposes. Holding digital assets inside a Crypto IRA changes how transactions are handled: Transfer Delays, Custody Friction, and Troubleshooting If you are planning an IRA transfer or rollover, review our guide on how to avoid delays during Crypto IRA and SDIRA rollovers. Frequently Asked Questions (FAQ)
