Investing in cryptocurrency is not as complex as you might think. Sure, it’s a new currency that the average person knows little or nothing about. But like all other forms of investing, cryptocurrency is straightforward once you’re equipped with the appropriate knowledge.
Over recent years, it’s moved into the mainstream and has become recognized as an investment asset class encompassing various investment vehicles, one of which is Alto CryptoIRA.
Simply put, CryptoIRA is a form of investing in your retirement using cryptocurrency. It is a self-directed IRA that allows you to invest in your retirement through crypto.
So, if you’re in the market to start investing in your retirement, Alta CryptoIRA is a promising option. Below is a comprehensive review that goes over its pros and cons and how it can work for you.
Let’s get into it.
What is Cryptocurrency?
Cryptocurrency is a digital currency that doesn’t rely on a centralized authority to verify transactions. Rather, it depends on cryptography for verification and to prevent counterfeiting.
To go a little more in-depth, blockchain technology supports cryptocurrency and is necessary to guarantee its validity and authenticity. A blockchain consists of individual data blocks that collect and store information about anything, such as transactions made with cryptocurrency.
The process of gathering information is straightforward when explained in its simplest form. Each data block refers to the previous block, creating a blockchain. The reference uses cryptography to ensure the chain remains immutable, so hackers cannot change data. There are thousands of cryptocurrencies that exist at the moment.
Who Can Benefit from Using Alto CryptoIRA?
Anyone interested in investing in their retirement can benefit from investing in Alto CryptoIRA. It is a self-managed and directed tool that allows you to use your retirement savings to buy, sell, and trade 200+ coins and tokens directly through Coinbase. Coinbase is the platform that makes all the transactions possible, and that’s a good thing because it’s already such a hugely trusted name in the crypto space.
Since Alto is a state-chartered trust company tightly regulated by the Financial Institutions Division of the State of New Mexico, it is a safe and straightforward way to invest in crypto.
If you’re an investor looking for a safe crypto retirement account, you can benefit from using Alto CryptoIRA.
Crypto IRA vs traditional IRA risks
Both crypto IRAs and traditional IRAs come with their own set of risks, so it’s important to consider both options carefully.
One risk associated with crypto IRAs is the volatility of the cryptocurrency market. Cryptocurrencies can be highly volatile, and their values can change dramatically in a short period of time. This means that if you invest in a crypto IRA, you could potentially lose a significant portion of your investment if the value of the cryptocurrency drops.
On the other hand, traditional IRAs are subject to the risks associated with the stock market. While the stock market has historically provided strong returns over the long term, there is always the risk of market volatility and economic downturns that could negatively impact your investment.
Another risk with crypto IRAs is the security of the cryptocurrency itself. Cryptocurrencies are digital assets that are stored on blockchain networks, which are vulnerable to hacking and other cyber attacks. If your cryptocurrency is stolen, it may be difficult or impossible to recover.
Traditional IRAs, on the other hand, are subject to the risk of inflation. The purchasing power of your retirement savings could be eroded over time due to inflation, which could reduce your standard of living in retirement.
What Cryptocurrencies does Alto CryptoIRA Support?
One of the most attractive benefits of using Alto for investment trading is that it supports over 100 cryptocurrencies. Here is a list of some of the cryptos they support:
- Boba Network
- Axie Infinity
- Gemini Dollar
- Many More!
As you can see, their long list of supported cryptos offers investors many popular options, allowing them to be as diverse with their investing as they prefer.
How much does Alto CryptoIRA cost?
Fortunately for Alto investors, CryptoIRA has an attractive administrative fee structure.
|Outbound Wire Transfer||$25.00|
In addition to these attractive fees, there is only a $10 investment minimum. While this may not hold value to investors with large portfolios, it is more than ideal for new investors who invest merely a tiny share of their crypto portfolios or the risk-averse investor.
When it comes to the reasonable administrative fee structure, it’s a win for Alto CryotoIRA.
Alto CryptoIRA is recognized as one of the safest companies to invest in crypto for your retirement. Since they partner with Coinbase as the trading platform, Coinbase is where the investors’ crypto is stored.
Coinbase maintains internal systems, like a bank or a broker; therefore, checks and balances are in place. But the difference between Coinbase and a traditional bank is that they will never repurpose your money unless you specifically instruct them to. Consider your crypto particularly safe with Coinbase.
Benefits of partnering with Coinbase as it relates to safety and security:
- It carries crime insurance for up to $320 million.
- It includes a cybercrime insurance policy.
In addition, it has its own errors & omissions and cyber liability insurance is passed on to all investors. Alto investors can rest easy that their investments are safe, thanks to the multi-layered insurance protection plan. To conclude, every investor’s cash secured in their account is FDIC-insured up to $250,000.
Pros and cons of Alto CryptoIRA: The pros
Like all other cryptocurrencies, Alta has benefits and drawbacks. Let’s review some of the more revered benefits.
Multiple Account Types
Fortunately for Alto users, there are multiple account types to choose from, and they all come with tax advantages, further incentivizing the use of Alto crypto accounts. The current account type options include:
- Roth IRA
- SEP IRA
- Traditional IRA
As you may have noticed, Alto does not support 401(k) accounts, but that doesn’t mean it won’t be an option in the future. But considering there are three account types to choose from, investors have more than enough options to decide between.
Straightforward Trading Process
For the average investor, simple investing is the gold standard. Fortunately, Alto CryptoIRA designed a streamlined process that makes investing with them relatively simple.
Unlike other crypto IRA companies, Alto exclusively uses Coinbase, which we explained above as a platform on which transactions occur. This gives users access to a diverse portfolio of cryptos to choose from.
Something to keep in mind, though, is that users cannot access all Coinbase features, such as crypto staking, which could be considered a drawback. However, they are welcome to open a Coinbase account, separate from Alto, and explore the many other options with other funds.
Alto’s partnership with Coinbase is an invaluable benefit to the investor because they will not be required to open an LLC or deal with regulatory standards, which can discourage people from investing altogether.
Another benefit to using Alto is that it is self-managed and directed, meaning the investor can access their account anytime they need to. Account holders can access around-the-clock crypto trading through Alto’s user-friendly dashboard.
Alto’s signup process couldn’t be more straightforward. The user signs up using an email and then is prompted to select if they want its regular IRA product or CryptoIRA. From there, they are required to verify their identity by providing personal details such as an address, SSN, and so on. Verification usually occurs instantly, and Alto will send an email if it requires additional information.
From this point, it’s time to begin investing. Investors can make cash contributions to activate their account through a few methods:
- An Automated Clearing House (ACH)
- Traditional check
- Wire transfer
- Rollovers and IRA transfers.
Users will be notified that most funding methods take 7 to 8 business days, with the exception of rollovers and IRA transfers, which typically take up to 20 business days.
Generally, an investor’s account will be active in less than one month, depending on the cash contribution processing time. The process doesn’t get any more straightforward than this.
Pros and cons of Alto CryptoIRA: The cons
Every investing company and platform has drawbacks, and Alto is not immune. While its investing process is straightforward and the fees are attractive, there are a few significant drawbacks we would like to go over.
Limited Options for Exchange Partners
We mentioned above that Alto partners exclusively with Coinbase as the only option for their investors. While Coinbase is one of the preferred trading platforms because of its high level of security, investors generally prefer options when it comes to investing their money in the market. But who knows, they could be working in the background on securing a few more partnerships. Until then, Coinbase is the only option.
While Alto has generally positive reviews, it’s important to note that Coinbase, which processes all of Alto’s customer transactions, has some unfavorable reviews.
Although Coinbase has a user-friendly interface and educational resources and content that users prefer, the popular crypto exchange platform is known for its less-than-stellar customer service.
Until Alto expands their partnership program to other digital platforms, it will continue to be a drawback for some potential users.
Alto Crypto IRA vs. iTrustCapital
If you are interested in an IRA in cryptocurrency, also check out iTrustCapital. While Alto IRA offers more options in terms of the number of coins you can invest in, iTrustCapital only offers the more popular coins. There are also some key differences in fee structures between Alto Crypto IRA and iTrustCapital. Depending on what you would like to invest in, one may be better than the other.
You can check out our full review of iTrustCapital.
Alto CryptoIRA is a highly respected company that facilitates digital IRA solutions and provides the comfort of regulatory compliance for all three account types: Roth, SEP, and Traditional IRAs.
If you’re an investor who prefers the ability to invest in cryptocurrencies, Alto CryptoIRA has nearly 150 cryptocurrencies to choose from. If you don’t find this too overwhelming, Alto is a great company to start your retirement investing.
And when it comes to the safety and security of your investments, Alto has you covered. Alto CryptoIRA definitely has its place in retirement investing, bridging the divide between conventional retirement investing and not-so-conventional crypto investing.
If you’ve had any experience with Alto CryptoIRA, let us know! We’d love to hear all about it.