If you are a current Midland Trust client, please click here to log in to your account. Looking for account resources? Click here.

View All

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in pages
Filter by Categories
Cryptocurrency Investing
ETC News
Featured Your Story
Investor Insights Blog
Managing Your Account
News and Trends
Precious Metals Investing
Press Release
Private Equity and Entity Investing
Promissory Note Investing
Real Estate
Real Life Examples
Roth IRA
Self-Directed IRA Concepts
Small Business Plans
Tax Insights
Tax-Advantaged Accounts

Investor Insights Blog|Cryptocurrency in an IRA: How it Works

Cryptocurrency Investing

Cryptocurrency in an IRA: How it Works

Are you considering investing in cryptocurrency in an IRA? Here’s what you should know before you get started.

Why Hold Cryptocurrency in a Self-Directed IRA?

Potential Tax Advantages

While investors have a variety of reasons for holding cryptocurrency, such as Bitcoin, in a self-directed IRA, one of the top possible reasons would be the tax advantages.

Investments within a self-directed account grow tax-deferred or tax-free, depending on the account type and as long as IRS guidelines are followed.

How Does Cryptocurrency in an IRA Work?

All IRAs must be held by a custodial entity, such as a bank or a trust company, approved by the IRS. Through a predecessor company, Equity Trust has been an IRS approved custodian since 1983.

As a leading provider of self-directed IRAs, Equity Trust has more than $34 billion in assets under custody and administration (as of 8/31/2021).

Pertaining to cryptocurrency, once a retirement account is open and funded, you can establish a digital currency (cryptocurrency) trading account within our Digital Asset Platform.

As you direct, the funds in your IRA are transferred to the Digital Asset Platform. When cryptocurrency is sold, funds are transferred from the platform back to the IRA.

Digital Currency Investing Guide

How are funds transferred to Equity Trust?

Cash funds can be transferred via check or wire. All other assets are transferred either ACATS or non-ACATS.


What investments can I make using a self-directed IRA?

With a self-directed IRA, your investments are up to you, within the bounds of the IRS rules and guidelines. The IRS does not provide guidance on what investment types are permitted, but dictates only what is NOT permitted. Examples of prohibited IRA investments include collectible (such as artwork, stamps, rugs, antiques and gems), certain coins and life insurance. See IRS Publication 590 for more information about prohibited investments.

Related Posts

Join over 100,000 subscribers who receive investing and wealth-building news and education in their inbox.

This field is for validation purposes and should be left unchanged.