Alto CryptoIRA Review

Alto CryptoIRA is a cost-effective way to leverage tax-advantaged retirement accounts to invest in crypto.

It’s best for investors seeking diversification. While Alto is affordable and easy to use, it lacks transparency over safety and security.

Read more to understand what Alto has to offer.

The Verdict for Alto CryptoIRA

I’ve given them a rating of 8 out of 10.

Alto is a SDIRA custodian that is well-regarded for its adoption of technology and eye towards the future.

While the CryptoIRA gives investors the chance to add alternative assets to their portfolio for a low fee, a lack of transparency regarding security protocols is a risk investors should weigh.

Evaluate whether or not an Alto CryptoIRA aligns with your financial goals before investing.

Criteria	Rating (out of 10)
Security Standards	8
Pricing & Fees	9
Asset Segregation	7
Insurance Coverage	8
Services & Offerings	8
Regulatory Compliance	6
Onboarding & Integration	8
Overall Rating	8

In this review of Alto CryptoIRA, I’ve followed BIC’s detailed criteria for evaluating the crypto IRA custodian.

About Alto CryptoIRA

Alto was founded in 2015 by Eric Satz. The company is led by a team of finance industry veterans who bring decades of experience working in finance and tech. 

In 2018, Alto IRA launched to make it  easier for investors to add alternative assets to their portfolios.

The CryptoIRA is an account Alto offers to help investors diversify by trading more than 200 cryptocurrencies.

The company’s mission is to make investing accessible to everyone while empowering investors to diversify assets to prepare for the future.

The CryptoIRA does this by giving investors access to alternative assets in tax-advantaged accounts.

Alto is a respected custodian of self-directed IRAs that works with more than 27,000 investors and has $1.4 billion in assets under management.

CryptoIRA is available to adults in every state in the United States except Hawaii.

Alto has been accredited with the Better Business Bureau since 2020 and has an A+ rating.

Security Standards

Alto CryptoIRAs are encrypted with 256-bit SSL certification trading. The company follows industry standards for P2SH and BIP32 to provide financial privacy.

Two-factor authentication is also offered to further secure accounts.

Assets purchased in a CryptoIRA are held with Coinbase. While assets are held in both hot and cold wallets, the majority of Coinbase’s assets are held in cold storage.

Cash is held at an FDIC-insured account with BankProv.

Coinbase provides crime insurance up to $320 million. Alto provides a $3 million cyber crime insurance policy on top of that.

The company does not disclose its policy for detecting and responding to security breaches, or information about security compliance, however Coinbase maintains strict security protocols to safeguard user data.

Pricing & Fees

Alto offers simple and transparent pricing for its CryptoIRA. According to its fee schedule, there is no setup fee and accounts can be opened for as low as $10.

Alto does not charge an annual maintenance fee. It only charges a 1% trading fee on crypto trades.

This includes the cost of making trades through Coinbase.

Outgoing Wire	$25
Outgoing Check	$50
Roth Conversion	$50
Account Closure	$50
In-kind Transfer	$100

Alto is a low-cost option compared to its competitors who charge a percentage of your account’s value to cover the set-up fee, annual maintenance, and any trades you make.

Its minimum investment requirement to open an account is also considerably less than other crypto IRA providers.

Asset Segregation

Alto partners with Coinbase Prime to facilitate trades in a CryptoIRA account.

Assets are held on your behalf in an institutional-grade Coinbase wallet. Coinbase uses a combination of both hot and cold wallets to store digital assets.

Assets held in an individual investor’s account are held separate from both Coinbase and Alto. Cash balances are stored in a separate FDIC-insured bank account with BankProv.

Alto does not provide information about how it audits its accounts to verify asset segregation.

Coinbase is a publicly traded company that is subject to auditing and reporting to government agencies.

While assets held through Coinbase are insured and are regulated, Alto does not have any legal protections in place to ensure asset segregation between investors.

Insurance Coverage

Both Alto and Coinbase offer insurance coverage to protect investors. Coinbase carries a $320 million cyber crime insurance policy while Alto maintains a separate $3 million cyber crime policy.

The company also carries an Errors & Omission policy. While the policy won’t protect you as an investor, it helps Alto recover from a data breach should one occur.

Alto has not experienced a cyber incident to date so it is unclear how a breach would be handled and what investors should anticipate if a claim needs to be filed.

Services & Offerings

The CryptoIRA is a self-directed IRA investment account managed by Alto.

It does not act as a hot wallet, but it provides hot and cold wallet storage through Coinbase. Crypto held with Coinbase is stored in 1:1 institutional-grade wallets.

While you can trade your crypto at any time through Alto, you do not directly own your crypto. You can’t stake your crypto or transfer it to your own wallet.

When you open a CryptoIRA with Alto you also get access to Alto IRA. This gives you the opportunity to invest in other alternative assets like artwork, precious metals, or real estate.

Investors can open different types of tax-advantaged accounts including traditional, Roth, or SEP IRAs. Alto maintains a mobile app to give you access to 24/7 trading.

Alto has a team of in-house experts who are available to help you open an account or answer any questions you have about the process.

Customer support is available Monday through Friday 8:00 am – 5:00 pm CT at 877-673-1557.

Regulatory Compliance

Alto is registered by the New Mexico Financial Institutions Division Regulation and Licensing Department (NMRLD) where it is required to undergo periodic regulatory compliance reviews.

It maintains a strict anti-money laundering policy to comply with federal regulations.

Alto serves as an administrator of self-directed IRA accounts, including the CryptoIRA account, but it is not a licensed broker dealer.

The company does not disclose its regulatory reporting standards or if it’s had any previous regulatory compliance issues.

Onboarding & Integration

Alto provides a streamlined onboarding process:

1. Create a username and password
2. Verify your identity with a government issued ID and your Social Security Number
3. Select an account type to open
4. Fund your account with an ACH transfer or account rollover
5. Select assets to invest in

Depending on how you fund your account, it can take between a week and a month to complete the full setup process.

If you experience any technical issues during setup, you can reach out to a customer support specialist for assistance.

While Alto’s CryptoIRA is supported by Coinbase, it does not offer additional integrations to manage your portfolio off the platform.

Alto CryptoIRA Alternatives

Alto CryptoIRA is a low-cost option for crypto investors, but there are other platforms to consider.

iTrustCapital

iTrustCapital is best for investors who want to pair gold investments with crypto. It offers a similar trading fee as Alto and provides trading in partnership with Coinbase.

Compared to Alto, it requires a $1,000 minimum investment and only gives you access to 30 different types of cryptocurrencies.

Open an account with iTrustCapital today

Bitcoin IRA

Bitcoin IRA is best for investors who want a seamless experience. Investors can open an account in less than three minutes, however, that comes at a cost.

Bitcoin IRA charges a 2% trading fee, a 0.08% account maintenance fee, and a 2.99% setup fee. Bitcoin IRA also has a $3,000 account minimum to begin investing.

Open a Bitcoin IRA account in just 3 minutes!

BitIRA

BitIRA is ideal for investors who want high security. BitIRA only stores digital assets in cold wallets and offers end-to-end insurance coverage.

While it doesn’t offer nearly as many cryptocurrencies to invest in as Alto, it provides peace of mind for risk-conscious investors.

Get a free Ledger Nano from BitIRA

Is Alto CryptoIRA a custodian you can trust?

Alto CryptoIRA is a legitimate option for crypto investments. It gives you an easy way to add crypto to your portfolio.

While you don’t own your digital assets directly, Alto makes it possible to invest in a tax-advantaged account with low fees.

If crypto investing aligns with your financial goals, compare Alto CryptoIRA to other crypto investing options to see if it’s the right fit for you.

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