Crypto IRA Hacked! Why Security is the #1 Advantage of Crypto Solo 401k vs Crypto IRA

If your Crypto IRA is hacked and your account value goes to zero, it doesn’t matter how much you have made investing your retirement funds in cryptocurrency.

As such, it is important to consider the security advantages of a Crypto Solo 401k vs a Crypto IRA.

CLICK HERE for the slides to Crypto IRA Hacked! Why Security is the #1 Advantage of Crypto Solo 401k vs Crypto IRA

Current Options to Invest Retirement Funds in Crypto

  • The blue chip IRA brokerages such as Fidelity, Schwab, TD Ameritrade don’t offer IRA account that allow for crypto trading.
  • At the same time, the cryptocurrency exchanges don’t offer IRA accounts.
  • To meet the demand Crypto IRA providers have opened up shop in the past year or so.
  • My Solo 401k Financial has been helping its clients invest Solo 401k funds in cryptocurrency for many years.
Crypto IRA vs Crypto Solo 401k Investment Options

Crypto IRA Requires Third Party Trustee

  • IRS Rules require that all IRA accounts be administered by a third-party bank or trust company.
  • For the Crypto IRA investor this effectively means that the Crypto IRA provider will have access to your account. 
  • If the Crypto IRA provider is hacked, this could put your crypto retirement holdings at risk.

Business Owner May Serve as Trustee of Crypto Solo 401k

  • Per IRS, the trustee of of a 401k plan may include the business owner (i.e. you).
  • For the Crypto Solo 401k investor this means that the Crypto Solo 401k provider will NOT have access to your account. 

Additional Security Considerations

  • While Crypto IRA providers typically offer only one designated platform or exchange, a Crypto Solo 401k can access many exchanges and even DeFi.
  • While a Crypto IRA must be stored with a third-party custodian, a Crypto Solo 401k offers the option to store stored at the Exchange/Cold Storage/Cold Wallet

Crypto IRA Storage Options

Crypto IRA Storage Options

Crypto Solo 401k
 Storage Options

Crypto Solo 401k Storage Options

Steps to Invest Solo 401k Funds in Cryptocurrency

Steps to Open Crypto Solo 401k

Continue the discussion in our My Community where our Owners host a daily LIVE webinar where you can ask questions and you can post questions in our forums: Cryptocurrency Forum

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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