What do you think about Bitcoin IRAs?

Hi All, @ivan, and @filip,

The IRS is cracking down on crypto asset taxes here in the US and auditing is happening more. Every TX has to be documented and taxed accordingly here in the US and it can become quite a task keeping up with the income and/or capital gains taxes depending on how long the asset is held. Also, the fines for not reporting crypto assets are hefty!

I really like the idea of a Roth IRA so that I can have that tracked, trade more (with amateur limitations) and only pay taxes on the income and not the long term gains. Especially the Roth, for those who qualify, as a way of investing in BTC and alts and minimizing TX fees and taxes?

What do you think of Bitcoin IRAs? Do you invest with an Crypto IRA? Have you thought about it? Do you have any experiences with them and with which companies?

I’d love to hear your thoughts


Continuing the discussion from Bisq Decentralized Exchange:

I am no expert on finances, and I know little about traditional IRAs, but here are a few of my concerns with crypto IRA options:

The first would be fees (not transaction fees, but “service fees” charged by the IRA company). Being a fairly new industry, crypto IRAs can charge higher fees than standard IRAs; I have seen some options with fees of 15% to purchase digital assets with your capitol. While contributions from existing IRAs (401k, Roth, etc) are tax-free, withdrawals are taxable. Most options I have seen do not allow personal access to spending assets until a taxable withdrawal is made.

The second tacks on the first point; the crypto IRA market is quite new. Even with experience in traditional finance, there are nuances that are present in crypto not ever before seen in traditional finance. Most IRA companies started in “legacy” finance, so their understanding of markets may or may not lend well towards crypto.

Lastly, the fact that these account are controlled by central companies is a step backwards in my opinion. Decentralization is a huge narrative in the crypto space, and these IRAs are far from it.

All these points are why I believe Defi within smart contract chains seems to be a better answer as far as low (possibly 0) taxes, yet the TX fees are the only thing to worry about. Having a good plan of what Defi tactics to use can ensure the fewest transactions take place.

Ethereum has many money markets that YOU personally can maintain. WOW!

If you haven’t already, check out the Defi 101 and 201 courses at the Academy.


Defi is the fastest growing crypto industry and this track will teach you everything you need to know to start succeeding in this movement.

Again, keep in mind these are my opinions and may be formed on incomplete information, but should mostly hold true.

Reposted from other discussion


On the other discussion, your question was more general, so let me address taxes more directly.

First of, @ivan nor @filip are not USA based, and may have little info on how things are working here.

I imagine most of your concern spurs from IRS letters that have been going round. It is highly controversial, and many believe the IRS is overstepping. Having no control over your digital wallets, it appears scare tactics work best for coaxing payments out of users. Remember this, the IRS doesn’t write laws, and nothing clear has been established for crypto other than crypto is to be claimed as property, not currency.

Transferring crypto is not a taxable event, nor is buying crypto with fiat. The most comprehensive resource I have seen can be found here.

Most people are concerned about gains, but your losses are reported too, and can save you money!

Overall, it is best to consult a tax specialist for further guidance. There is much controversy in this topic, but it appears most people experiencing issues from the IRS are those living off crypto and have not filed taxes, but nothing in this post should be taken as legal nor financial advise. Consult the pros!

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Thanks for your input here mr_e!
I do plan on taking the Defi courses as they are part of my track of coursework (just finishing up my second course right now) here on the academy so I am very much looking forward to learning more about these other ways of making money in crypto.


Thanks for your reply here mr_e!
This is a great video on crypto tax reporting. Many thanks for this!

Defi has been my favourite so far. I’ve took so much from it. @amadeobrands the man !!!