Menu Close

IRA Financial Group Blog

How You can Hold Your Own Crypto Private Keys in a Self-Directed IRA

Crypto Private Keys
3 Minute Read

As Jack Dorsey famously said at the Bitcoin Miami conference in June 2021, “No keys – No cheese.”  Gaining the power to control your Bitcoin or other cryptocurrency private keys is essential to maximizing the security of your Self-Directed IRA or Solo 401(k) Bitcoin or crypto investments. IRA Financial is the only Self-Directed IRA provider that will allow you to buy and sell cryptos in a Self-Directed IRA or Solo 401(k) on your own through Gemini and control your own private keys.

What is a Private Key?

A private key is normally coupled with a public address where the user can receive crypto payments from others, as well as send them. If you compared the importance of the private keys to a traditional form of banking, the public address would be your bank account – and the private key would be the PIN that enables you to make withdrawals.  When you purchase cryptos on an exchange, such as Gemini or Coinbase, the private keys are actually being held by the exchange and not you.  In other words, when you hold cryptos on an exchange you are essentially receiving a promise from the exchange that they will give you your crypto coins when you ask for them, in the same manner that you have for money in a bank. According to many crypto investors, as long as you don’t own your own private keys, you don’t own your coins.

    Crypto Info Kit

    Get the Info Kit

    How to Control Your Crypto Private Keys

    IRA Financial is the first Self-Directed IRA company to allow their clients to invest in cryptocurrencies, such as Bitcoin, directly via a cryptocurrency exchange without the need for a third-party broker or the use of an LLC.

    Now, investors can use their retirement funds to buy all the major cryptocurrencies directly through Gemini, one of the leading US cryptocurrencies exchange.  IRA Financial’s new cryptocurrency solution is the first to allow retirement holders to hold cryptocurrencies in an IRA directly on an exchange.   The account is opened in the name of the IRA but controlled by you as the authorized representative on the account.  The IRA holder has 100% control over the account and can trade anytime.  IRA Financial custodies your IRA and handles all IRS reporting and Gemini custodies your cryptos. Also, the IRA holder has the option to gain 100% control over their private keys and can hold the cryptos in a cold wallet. 

    IRA Financial strongly believes in the power of taking control of your cryptos private key for added safety and security.  You can move your Bitcoin or other cryptos off the Gemini exchange and hold the coins in a cold wallet that you can hold personally somewhere safe.  You will also have the option of using your cold wallet to connect with a decentralized cryptocurrency exchange (DEX), such as Uniswap, to trade cryptos.  IRA Financial is the only full feature self-directed retirement account provider that allows you to control your cryptos private keys and also use a DEX.

    How Does the IRAFI-Gemini Crypto Solution work?

    Our partnership with Gemini allows you to open your exchange account in the name of your retirement plan. That is an important feature for tax purposes. The IRS has recently cracked down on crypto investors by issuing John Doe summons to the popular exchanges. When they see the exchange account is owned by an IRA or 401(k) plan, they no there are no taxes due! If the account is in your name, you are subject to capital gains taxes.

    As we mentioned earlier, you have total control of your crypto private keys. The ability to move cryptos off of the exchange is an important aspect for investors. Setting up a Bitcoin IRA or 401(k) with IRA Financial is easy, fast and secure!

    invest in cryptos


    Everyone has the right to control their retirement investment choices. If cryptocurrency, like Bitcoin, is something you want to invest in, you should also have control of your crypto private keys. The IRA Financial-Gemini partnership allows you to safely and securely invest your IRA or 401(k) in cryptos.

    Best of all, you can get started in just a few minutes with the new and approved IRA Financial app! Get Started Now!

    Related Articles