Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Can You Own Crypto in a Roth IRA? Updated Apr 22, 2025 7-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Ben Luthi Written by Ben Luthi Expertise: Credit cards, consumer credit, student loans, personal loans, mortgage loans, investing, banking, budgeting, debt Ben Luthi is a Salt Lake City-based freelance writer who specializes in a variety of personal finance and travel topics. He worked in banking, auto financing, insurance, and financial planning before becoming a full-time writer. Learn more about Ben Luthi Reviewed by Kyle Ryan, CFP® Reviewed by Kyle Ryan, CFP® Expertise: Comprehensive financial planning, tax planning, investment planning, retirement planning, estate planning Kyle Ryan, CFP®, ChFC®, is a co-owner and financial planner at Menninger & Associates Financial Planning. He provides his clients with financial products and services, always with his client's individual needs foremost in his mind. Learn more about Kyle Ryan, CFP® Cryptocurrency is considered a speculative investment, and prices can be incredibly volatile. However, if you want to diversify your retirement savings with digital assets, it’s possible to do so. In fact, bitcoin Roth IRAs and other crypto retirement products are available from select providers. They aren’t generally offered by well-known investment firms, however, and there are potential costs and risks to consider before opening a crypto Roth IRA. Here’s what you need to know about how they work, the pros and cons, and the steps you can take to get started. Table of Contents Can you buy crypto in a Roth IRA? Can you buy bitcoin in a Roth IRA? How does a self-directed Roth IRA for crypto and bitcoin work? Pros and cons of owning crypto in a Roth IRA How to own crypto or bitcoin in a Roth IRA Can you buy crypto in a Roth IRA? Roth IRAs offer tax-free growth on your retirement savings, as long as you satisfy certain conditions. If you’d like to include some digital currencies in your investment portfolio, you may wonder whether you can buy crypto in a Roth IRA. The short answer is yes, you can. However, there are some limitations to keep in mind. Here’s what to know about the rules and availability: The IRS allows crypto IRAs: Since 2014, the federal tax agency has treated cryptocurrency as property for federal tax purposes. Once you’ve contributed to an IRA, you can invest in a variety of securities, including certain property. You can’t contribute crypto: While you can buy crypto in a retirement account, you can’t put crypto that you already own in a Roth IRA because the IRS requires all contributions other than rollovers to be made in cash. Most brokerage firms don’t allow it: While brokerage firms may allow you to invest your conventional Roth IRA money in crypto-related funds, they typically don’t allow individual cryptocurrency transactions. If you want to buy bitcoin in a Roth IRA (or any other virtual asset for that matter), you’ll need to open what’s called a self-directed IRA. These financial products allow you to invest in alternative securities, such as cryptocurrencies, that aren’t available with standard IRAs. However, they come with extra risks—more on those in a minute. If you have true conviction in crypto investments, a Roth IRA can be a wonderful account type to hold that exposure in. Just be mindful of proper diversification. Kyle Ryan , CFP®, ChFC® Can you buy bitcoin in a Roth IRA? Yes. Self-directed crypto IRAs typically allow you to invest your retirement money in bitcoin, along with other digital currencies. Many crypto IRAs are specifically called “bitcoin IRAs.” However, the same rules apply to other cryptocurrencies. While the IRS allows taxpayers to invest in bitcoin in their retirement accounts, traditional financial institutions restrict that option with a regular Roth IRA. Instead, you’ll need to open a specialized self-directed IRA that allows you to buy bitcoin with your retirement contributions. Crypto IRAs are offered by custodians that specialize in that financial product. How does a self-directed Roth IRA for crypto and bitcoin work? For the most part, self-directed Roth IRAs work similarly to conventional IRAs. However, there are some distinct differences to keep in mind before getting started with one. Here are the general features to understand: Not everyone can contribute: You can only contribute to a Roth IRA if your income is below a certain threshold. While people with higher incomes can technically contribute via the “backdoor Roth conversion” method, it’s best to consult with a tax professional before attempting that option. You’re subject to contribution limits: Like a conventional Roth IRA, the IRS limits the amount you can contribute to your bitcoin Roth IRA each year, and this threshold is subject to change from year to year. For the 2025 tax year, for instance, you can add up to $7,000 to your IRA—or up to $8,000 if you’re aged 50 or older. You’ll need a self-directed IRA: As we mentioned, you’ll need a specialized self-directed Roth IRA for crypto investments. Certain platforms, such as iTrustCapital, Bitcoin IRA, and BitIRA, offer these. If you have access to a 401(k) with a self-directed brokerage account feature, you may be able to invest your Roth or traditional 401(k) into crypto-related investments. Crypto IRAs are dedicated accounts: Standard self-directed IRAs may allow you to invest in a variety of alternative investments, such as real estate, commodities, precious metals, and more. However, most crypto IRAs only offer one asset class—iTrust Capital is the only company we’ve found that allows you to invest in crypto and another asset, like gold. If you want to diversify your retirement savings with stocks, bonds, and other assets, you’ll need to maintain more than one Roth IRA. The custodian holds your investments: By law, assets held in a self-directed IRA must be held by the custodian, which is the account provider. In other words, you can’t hold your Roth IRA bitcoin or other digital assets in your own virtual wallet or cold storage. Crypto options can vary: As with traditional brokerage firms, crypto IRA custodians differ in the assets they offer. While some may allow you to invest in hundreds of different cryptocurrencies, others may limit you to a few dozen. Investing in a Roth IRA is best for investors who understand the risk they are taking and have a long time horizon before needing to withdraw that money. Diversification is paramount—don’t let your retirement nest egg rely on the performance of a single asset class! Kyle Ryan , CFP®, ChFC® Pros and cons of owning crypto in a Roth IRA If you’re a crypto investor and like the idea of including digital assets in your retirement plan, it’s important to understand the advantages and disadvantages. Here’s what to keep in mind. Pros Diversification Investing in different types of assets can ensure that you’re not overly reliant on any single one. What’s more, unique asset classes typically come with different return potentials and risks. Including crypto assets like bitcoin in a Roth IRA can be a good way to diversify beyond traditional investment options like stocks and bonds. High return potential Due to their speculative nature, digital assets have a relatively high return potential—though that comes with some caveats and risks, such as volatile and regulatory uncertainty. Tax benefits Roth IRA contributions are made with after-tax dollars, which means you can’t deduct the money you contribute on your tax return. However, those funds grow on a tax-free basis, and qualified withdrawals are also tax-free. In contrast, traditional crypto investments are subject to capital gains tax. So if you want to include virtual currencies in your investment strategy, a Roth IRA can be a good way to do it. Cons Short-term volatility Greater return potential often comes at the cost of greater volatility, and that’s particularly true of cryptocurrency. If you’re nearing retirement age and need to minimize your risks or you’re generally more risk-averse, a crypto Roth IRA may not be a good fit for you. Costs Self-directed IRAs tend to be more expensive than conventional IRAs, and crypto IRAs are no exception. Depending on which provider you choose, you may be subject to an account opening fee, a monthly or annual fee, transaction fees, spread fees, and others. The fees may be flat or based on your portfolio balance or transaction amount. Lack of regulation Cryptocurrency is still in its infancy, and it’s not regulated the same way as stocks and other traditional investments. Additionally, your investments may not be insured in the event that the custodian fails. You’ll also be at a greater risk of falling victim to scammers. Finally, unlike traditional custodians, self-directed IRA custodians aren’t required by law to evaluate the legitimacy or quality of the investments they offer. In other words, you’re largely on your own. First and foremost, this is a retirement account. Depending on when you plan to withdraw from this account, the volatility and risk in a crypto may not be worth taking. The main benefit is the tax-free nature of the growth of a Roth IRA. This can save a ton of money in taxes if an investment with strong growth potential is held in a Roth, but can also decimate the account if purchased at the wrong time or if it sells off. The con of owning crypto in a Roth is you cannot harvest your losses for a tax deduction if it loses value. Highly volatile investments in non-qualified accounts can be beneficial from a tax perspective for that reason. Kyle Ryan , CFP®, ChFC® How to own crypto or bitcoin in a Roth IRA If you’re interested in opening a crypto Roth IRA, here’s how you can get started: Shop around: Research different bitcoin IRA providers to find the one that’s best suited to your needs and goals. You’ll want to pay special attention to fees, minimum investment requirements, crypto selection, security measures, and customer service ratings. Also, make sure the custodian you’re interested in offers Roth accounts. Open an account: The process for opening a crypto Roth IRA is similar to a conventional Roth IRA. You’ll share some basic information about yourself, along with a copy of your government-issued ID, and review and sign the account agreement. You can typically complete the process in under five minutes. Add money to your account: Follow the custodian’s instructions to fund your account. Options may include rolling over another IRA or a 401(k) into your new account or contributing cash. Remember, you’ll need to meet the minimum deposit requirement, which can range anywhere from $10 to $5,000 or more. Purchase your digital assets: Once your funds have been deposited, log in to your online account and navigate to the trading platform. From there, you can choose virtual assets from the options available and purchase them in whole or fractionally. As you shop around, some options to consider include iTrustCapital, Bitcoin IRA, and BitIRA. Before you open an account, however, it’s crucial that you evaluate your financial situation, your investment goals, and your risk tolerance to determine whether a crypto Roth IRA is the right fit for you. Read More: Check out our full list of the best crypto IRAs