Where can I buy bitcoin (BTC)?

Summary

You can buy bitcoin through a a Crypto IRA, or a Premium Custody Account at iTrustCapital, or a cryptocurrency exchange. Exchanges provide immediate access to bitcoin but typically create taxable events when assets are sold and may expose users to additional custody risks. Crypto IRAs offer tax-advantaged growth for retirement investing, while Premium Custody Accounts provide a secure, taxable way to buy and sell bitcoin. The right option depends on your investment goals, tax considerations, and security preferences.

Whether you're dipping your toes in the crypto industry for the first time and are interested in bitcoin or you're an experienced investor, it's important to know the different avenues for acquiring this cryptocurrency.

What Are the Two Main Ways to Buy Bitcoin?

Two primary methods of acquiring bitcoin are buying through an Individual Retirement Account (IRA) or an exchange. We'll go over the differences and similarities with each method.

IRA: With an IRA at iTrustCapital you can access bitcoin 24/7, and these types of accounts are designed to be tax-sheltered. The earnings within IRAs are not immediately taxable, making it an appealing choice for those interested in long-term investment strategies. This setup can enable assets to appreciate without incurring annual capital gains tax. Furthermore, assets are managed Off-Balance Sheet—meaning client assets are not recorded on the company's financial statements and are never commingled with business operating funds—through a certified chartered trust. As for security measures, withdrawing funds from an IRA involves a specialized authentication procedure to ensure the safe release of your assets.
Exchange: Obtaining bitcoin via an exchange parallels the experience of trading stocks on conventional stock markets. Like with stocks, profits earned from selling bitcoin this way could come with tax consequences. In contrast to an IRA, the majority of exchanges like Coinbase and Kraken run On-Balance Sheet operations—where client assets are recorded on the company's financial statements and may be tied to the financial health of the exchange, potentially mixing client assets with their own funds. In addition, exchanges are frequently targeted by hackers, leaving accounts more vulnerable to unauthorized access and potential asset depletion. Not to mention, most exchanges do not have live customer service representatives. Therefore, if an issue occurs, one may be frustrated with no help.
Premium Custody Account (PCA): A Premium Custody Account at iTrustCapital provides a taxable way to buy and sell bitcoin while prioritizing security. Unlike many traditional crypto platforms, PCA operates as a closed-loop system. USD is held with regulated banks and custodians, and digital assets are held with institutional storage providers utilizing cold storage, HSM, and MPC.

Key Advantages of Each Method

iTrustCapital IRA Advantages:

Tax-deferred or tax-free growth (depending on Traditional or Roth IRA)
Assets held off-balance sheet and never commingled with company funds
Institutional-grade custody through regulated trust companies
Live U.S.-based customer support

Exchange Advantages:

Quick and easy account setup
Immediate access to buy and sell bitcoin
Convenient external connections
Wide variety of trading pairs and features

Premium Custody Account Advantages:

Off-balance sheet custody structure
Institutional-grade custody partners
24/7 access on desktop and mobile
Live U.S.-based customer support

Comparison

Feature	Crypto IRA	Premium Custody Account	Exchange
Tax Treatment	Tax-deferred or tax-free potential	Taxable account	Taxable account
Asset Custody	Off-balance sheet	Off-balance sheet	Often on-balance sheet
External Wallet Access	No	No	Usually yes
Security	Institutional custody	Secure closed loop system. USD held with regulated banks and custodians, and crypto assets are secured with institutional storage providers	Varies by platform
Customer Support	Live support	Live support	Often limited
Best For	Retirement investing	Long-term taxable investing	Active trading

You Decide

Now that you understand the different ways to buy bitcoin, you can choose the option that best aligns with your goals.

For retirement-focused investors, a Crypto IRA may offer valuable tax advantages through tax-deferred or potentially tax-free growth. For investors seeking a taxable account with enhanced security, a Premium Custody Account at iTrustCapital provides a closed-loop custody model that eliminates external wallet connections while maintaining 24/7 access to bitcoin. For those prioritizing wallet transfers and active trading features, traditional exchanges may be an option, although they often come with additional security and tax considerations.

Whether you are investing for retirement or building long-term exposure to bitcoin in a taxable account, iTrustCapital offers solutions designed around security, transparency, and simplicity.

Why Choose iTrustCapital?

iTrustCapital offers a comprehensive Crypto IRA platform with specific features designed for long-term investors:

Access to 100+ cryptocurrencies including Bitcoin, Ethereum, Solana, XRP, and more
24/7 access on desktop and mobile platforms
1% transaction fee on crypto buys and sells with no monthly or annual fees
$1,000 minimum to open an account
Institutional custody partners including Coinbase Custody and Fireblocks
U.S.-based live customer support to help clients every step of the way

Not to mention, iTrustCapital provides a customer support team dedicated to helping clients along the way.

Interested in opening an account and buying and selling in an IRA or PCA?

Create an account and log in!

Frequently Asked Questions

Can I buy bitcoin in a Roth IRA?

Yes, you can buy bitcoin in a Roth IRA through a self-directed IRA platform like iTrustCapital. With a Roth IRA, you contribute after-tax dollars, but qualified withdrawals in retirement, including any gains from bitcoin appreciation, are completely tax-free, provided you meet IRS requirements (reaching age 59½ and account open for at least five years).

Is buying bitcoin on an exchange safe?

Buying bitcoin on an exchange carries certain risks. Exchanges are frequently targeted by hackers, and many operate on-balance sheet, meaning client assets may be commingled with company funds. Additionally, most exchanges lack live customer support. For enhanced security, consider platforms that hold assets off-balance sheet with institutional-grade custody.

What are the tax implications of buying bitcoin?

When you buy and sell bitcoin on a traditional exchange, any profits are subject to capital gains tax. Short-term gains (assets held less than one year) are taxed as ordinary income, while long-term gains receive more favorable tax treatment. In contrast, buying bitcoin within an IRA allows for tax-deferred growth (Traditional IRA) or potentially tax-free growth (Roth IRA).

What does "off-balance sheet" mean for my bitcoin?

Off-balance sheet means your bitcoin assets are not recorded on the company's financial statements and are not used to impact the company's financial ratios or leverage. Your assets remain separate from business operating funds and are never commingled, providing an added layer of security and protection.

What does "on-balance sheet" mean for exchanges?

On-balance sheet means client assets are recorded on the exchange's financial statements and may be tied to the financial health of the company. In this setup, client assets could potentially be leveraged for the company's business operations, which has led to losses for customers when some exchanges have faced financial difficulties.

How much do I need to start buying bitcoin in an IRA?

At iTrustCapital, the minimum to open a Crypto IRA is $1,000. There are no setup fees, monthly fees, or annual fees, only a 1% transaction fee when you buy or sell cryptocurrency.

Can I buy bitcoin at iTrustCapital without using an IRA?

Yes. In addition to Crypto IRAs, iTrustCapital offers Premium Custody Accounts that allow individuals to buy and sell bitcoin in a taxable account. Premium Custody Accounts provide access to bitcoin through a secure, closed-loop system while maintaining the same focus on institutional-grade custody and client asset protection. This gives investors the flexibility to choose the account structure that best fits their financial goals.

Categories:

Cryptocurrency

DISCLAIMER

This article is for informational purposes only and is not intended to constitute investment advice in any way or constitute an offer to buy or sell any cryptocurrency, digital asset or security or to participate in any investment strategy.

iTrustCapital is a fintech software platform for alternative assets. iTrustCapital is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

Investing in any digital asset or cryptocurrency (including meme coins) carries significant risks due to their speculative and highly volatile nature. Past performance is not an indication of future results. No investment is completely risk-free, and every investment carries the potential for losing some or all of the principal amount invested. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Digital asset (Cryptocurrency) deposits held with institutional storage providers are never FDIC insured and may lose value. Clients do not receive a choice of custody partner.

Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Conduct your own research and consult with a qualified legal, investment, or tax professional to assess your own risk tolerance prior to investing.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and does not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.