Holding cryptocurrencies inside a self-directed IRA allows growth to be tax-deferred or tax-free depending on whether a traditional or Roth structure is used, so buying, selling, or trading within the account generally doesn’t trigger immediate taxation.
Many providers also support rollovers from 401(k)s or existing IRAs into self-directed crypto IRAs, enabling diversification of retirement portfolios with digital assets while maintaining tax efficiency.
Holding cryptocurrencies inside a self-directed IRA allows growth to be tax-deferred or tax-free depending on whether a traditional or Roth structure is used, so buying, selling, or trading within the account generally doesn’t trigger immediate taxation.
For long-term investors, that tax treatment can preserve more capital for reinvestment and potentially boost overall returns.
Many providers also support rollovers from 401(k)s or existing IRAs into self-directed crypto IRAs, enabling diversification of retirement portfolios with digital assets while maintaining tax efficiency.