Can You Hold Crypto in an IRA? Understanding the Rules and Options

Updated October 2026: This article has been reviewed and updated to provide current information and additional educational context about holding cryptocurrency in a self-directed IRA.

Cryptocurrency has become another investment option for retirement investors looking beyond traditional assets such as stocks and bonds.

But holding cryptocurrency in an IRA works differently than buying and holding crypto personally.

Certain self-directed IRAs can hold cryptocurrency. With an Equity Crypto IRA investors can access digital currency within a retirement account and choose between self-trading cryptocurrency or exploring an automated, algorithmic investing approach.

Here’s what you should know about investing in cryptocurrency within an IRA, including how a crypto IRA works, important rules to consider, and the options available through Equity Trust.

Can You Buy Crypto in an IRA?

Yes, cryptocurrency can be held within certain IRAs. However, many conventional financial institutions limit retirement accounts to traditional investments such as stocks, bonds, and mutual funds.

A self-directed IRA with a custodian that supports digital currency can provide access to cryptocurrency and other alternative investments, such as real estate and precious metals.

With an Equity Crypto IRA, eligible investors can access cryptocurrency within an IRA while Equity Trust serves as custodian.

How Does a Crypto IRA Work?

Cryptocurrency held within an Equity Crypto IRA remains an asset of the IRA rather than being held personally by the account owner.

This distinction is important. IRA-held cryptocurrency cannot be transferred to a personal wallet or used to purchase goods or services. Investors can monitor their IRA and investment activity through the easy-to-use Digital Trading Platform via myEQUITY.

Digital assets are held using cold-wallet storage with applicable specialty insurance coverage. As with other assets held within an IRA, investors should understand the rules associated with retirement accounts before making investment decisions or moving assets.

Traditional vs. Roth IRA for Cryptocurrency

Cryptocurrency may be held in different types of IRAs, including Traditional and Roth IRAs. The primary differences involve how contributions and distributions are treated for tax purposes.

• A Traditional IRA may provide tax-deferred growth, meaning taxes on investment earnings are generally deferred until distributions are taken. Contributions may be deductible depending on eligibility and individual circumstances, and required minimum distribution rules may apply.
• A Roth IRA is funded with after-tax contributions. Qualified distributions may be tax-free, subject to IRS requirements. Roth IRAs also do not require lifetime required minimum distributions for the original account owner.

These differences apply to the IRA itself rather than cryptocurrency specifically. Eligibility, contribution limits, distribution rules, and tax treatment vary. Consider consulting with a qualified tax or financial professional to determine how IRA rules apply to your circumstances.

Cryptocurrency and Prohibited Transactions

The prohibited-transaction rules that apply to other investments in a self-directed IRA also apply when the account holds cryptocurrency. In general, IRA owners cannot use IRA assets for their personal benefit or engage in certain transactions between the IRA and a disqualified person. For cryptocurrency investors, this makes it important to keep IRA-owned digital assets separate from cryptocurrency held or used personally.

In addition to these IRS rules, Equity Trust has requirements for cryptocurrency held within its accounts. Account holders may buy and sell digital currency within the account, but cryptocurrency cannot be transferred into or out of the account, distributed directly to the account holder, or used to purchase goods or services. To move cryptocurrency purchased through Equity Trust to another custodian, the cryptocurrency must first be liquidated.

Prohibited transactions can have significant tax consequences, including potentially affecting an IRA’s tax-advantaged status. If you have questions about whether a transaction is permitted or how these rules apply to your situation, consider consulting with a qualified tax or legal professional.

How Can You Invest in Crypto through an Equity Crypto IRA?

Equity Trust offers two ways to access cryptocurrency within an IRA: self-trading and automated investing.

• Self-Trading option: For investors who prefer to make their own cryptocurrency trading decisions, the self-trading option provides access to available digital currencies through an Equity Crypto IRA. Investors determine which available cryptocurrencies they want to buy or sell and make their own trading decisions within the IRA. There is no minimum investment to get started.
• Automated Investing option: For Investors interested in an automated approach can explore the Automated Crypto IRA powered by Animus Technologies. The company developed an algorithmic, AI-based cryptocurrency investment approach that evaluates market conditions and provides trading instructions for Bitcoin, Ethereum, and cash positions according to its predefined investment methodology. Equity Trust serves as custodian of the IRA. There is a minimum investment of $25,000.

Learn more about Equity Crypto IRAs

Whether you’re interested in placing your own cryptocurrency trades or learning more about an automated investing approach, Equity Trust offers options for accessing cryptocurrency within a self-directed IRA.

Explore Equity Crypto IRA options to learn how cryptocurrency investing within an IRA works, compare the available approaches, and review the steps for getting started.

Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.