Cryptocurrency is a digital currency that‘s verified with blockchain technology, rather than central banks or other financial institutions. It offers many opportunities for investors to join a booming market.
If you’re looking to invest in the crypto market or use your retirement account to fund your crypto investments, learn how to go about investing in these financial assets.
Investing in Cryptocurrency: Step-By-Step Breakdown
Cryptocurrency has created waves in the investment sphere, with many big names making impressive strides. In June 2025, Coinbase was on the S&P 500, Bitcoin was trading above $100,000 and many other cryptocurrencies were growing at unprecedented rates. If you’re interested in investing in virtual currency, it’s important to educate yourself about the market.
Here’s a breakdown on how to invest in cryptocurrency for beginners:
Understand Cryptocurrency Price
Before you start investing in cryptocurrency as a beginner, it’s important to understand how it truly works. The price of cryptocurrency describes its real-time market quote per unit and is usually expressed in U.S. dollars. Several factors can contribute to the price fluctuation, such as:
- Utility and adoption: Cryptocurrencies with more uses, like decentralized finance (DeFi) and smart contracts, have the potential to build up more value over time.
- Liquidity: If a cryptocurrency has more investors buying and selling the asset, it has high liquidity, which stabilizes prices. Crypto options that have fewer buyers and sellers tend to experience more price swings.
- Supply and demand: Cryptocurrencies have a limited supply, so when demand increases, prices can skyrocket. On the other hand, if supply surpasses demand, prices drop rapidly.
- Market sentiment: Events like security breaches and investor sentiment can influence price movements, which can cause instability.
Decide on the Market Cap
Market cap is a crucial metric that provides insight into an asset’s overall dominance and stability levels. Cryptocurrencies typically fall into one of three market caps:
- Small-cap cryptocurrencies: Cryptocurrencies with a market cap under $1 billion are small-cap cryptos that can enhance growth opportunities. However, due to their volatile nature, they also come with some risks.
- Mid-cap cryptocurrencies: These have a market cap of $1 billion to $10 billion and offer higher potential but also increased risk because of their relative volatility rates.
- Large-cap cryptocurrencies: These cryptocurrencies have a market cap that exceeds $10 billion. They include big names like Ethereum (ETH) and Bitcoin (BTC) and they’re typically more stable. A key factor to consider is that these crypto options have slower growth potential.
Depending on your needs and risk tolerance, you can choose one of the caps or invest in a mix of cap options to diversify your portfolio and attempt to mitigate risk.
Pick Where to Buy
Once you have a solid understanding of cryptocurrency prices and have determined your desired market cap, you’ll need to decide where to buy your crypto. You can use an exchange marketplace or a broker app, but ensure it allows you to deposit and make purchases with U.S. dollars.
Purchasing through an exchange can feel overly complex, especially for beginners. While using most broker apps can be easier, there are typically significantly higher fees.
Accuplan offers a convenient option that allows you to purchase crypto without having to go to an exchange first. With this crypto trading platform, you can easily invest in crypto with or without a retirement account. Bear in mind that if you use an individual retirement account (IRA) to trade, you’re working with a tax-advantaged account, but without an IRA, you won’t have the same tax advantages.
Open and Verify Your Account
Depending on the platform you choose, you’ll need to follow the registration and verification steps. Typically, you’ll sign up with your email or phone and verify your identity with your ID. Once you complete the verification, you can start trading.
You’ll need to link your payment method. Keep in mind that wires can cost more and credit cards can be more expensive and potentially risky. Also, money can take a few days to clear before you can fully move or use it.
Buy Your Crypto
With so many cryptocurrency options available, it can be challenging to make a decision. Increases and drops can happen rapidly. Unlike other investments, it’s influenced by more than just interest rates. Bans and regulations can cause rapid declines, while positive media attention can cause increases. Here are some popular crypto options to consider:
- Bitcoin: Bitcoin is the original cryptocurrency. It runs on a blockchain, which logs transactions that are then dispersed across a network of computers. Bitcoin is one of the safer cryptocurrencies and has secure verification steps like a cryptographic puzzle. In August 2025, its price reached an all-time high, exceeding $111,842.71. Since its introduction, it has seen many increases.
- Tether: Tether is a stablecoin backed by fiat currencies like the U.S. dollar and the euro. A stablecoin is a crypto type that acts like a digital dollar. Unlike other cryptocurrencies, it doesn’t rapidly swing because it keeps that one-to-one value.
- Ethereum: Ethereum is both a blockchain platform and a cryptocurrency that has several applications. It’s a programmable platform that allows for the implementation of decentralized applications, smart contracts and non-fungible tokens (NFTs).
- Binance Coin: Binance Coin is one of the world’s largest crypto exchanges. It is also used for other tasks, like payment processing and travel booking arrangements. You can use this coin to trade for other forms of crypto, like Ethereum.
- U.S. Dollar Coin: This crypto is similar to Tether because it’s also a stablecoin, giving it a one-to-one ratio with the U.S. dollar. It can also be used for global transactions and provides a potentially more secure option for those wary of crypto’s volatile nature.
Why Consider Cryptocurrency for Your IRA?
There are many ways to invest in crypto as a beginner. An IRA is one of the best ways, and there are many benefits to using your IRA to invest in decentralized finance.
Cryptocurrency holdings can add more diversification to your retirement portfolio. Investing some of your retirement portfolio in crypto can help hedge against inflation. It also has high growth potential, which could take your portfolio to the next level.
Many investors prefer to add options like crypto because of its potential growth over the decades. Adding crypto holdings can strengthen your portfolio’s long-term capabilities and add a layer of growth protection.
One of the top reasons many individuals start investing in crypto with their IRA is the potential tax benefits. Including digital currencies in your retirement portfolio could help you avoid hefty capital gains taxes. Since you already paid taxes on the funds in your IRA, you can invest in crypto without the capital gains tax you would typically pay on non-IRA investments. You only pay income taxes whenever you withdraw from your IRA. Your tax bracket may also be lower after you begin withdrawing from your IRA.
Can You Hold Cryptocurrency in an IRA?
You can hold cryptocurrency in a specialized IRA. It can be a potentially lucrative investment choice, but there are a few rules to be aware of. You need a self-directed IRA to invest in crypto with your retirement portfolio.
When investing, remember that contributions will only be accepted in cash, but there is an exception for rollovers. You can move money from one retirement account, like a 401(k), but you won’t be allowed to put in more than the annual contribution limit.
Another key rule is that self-custody isn’t allowed. Holding the private keys yourself or using the assets personally can disqualify your IRA. You need a custodian or qualified trustee to control the assets. Your family members or business entities also can’t transact with your IRA. The custodian of your account must report fair market value annually to maintain compliance when you invest in crypto with your IRA.
Steps to Invest in Cryptocurrency With a Self-Directed IRA
Opening a crypto IRA is fast and straightforward, and with the right tax strategy, your portfolio can grow rapidly. Here’s how to start investing in cryptocurrency with a self-directed IRA:
1. Choose a Reputable IRA Custodian
Look for a self-directed IRA (SDIRA) custodian with experience in supporting digital assets. Research their supported coins and decide if those are investments that interest you. Always find out about the security features they have in place to protect account holders and ask about their policies on retirement investment.
A reputable IRA custodian should have years of experience working in the retirement account industry and have firsthand experience in helping crypto IRAs or other unique retirement plans flourish.
2. Open and Fund Your Self-Directed IRA
There are two main ways to fund your self-directed IRA — rollover from another 401(k) account or contribute with cash only in amounts within the IRS limits. A self-directed IRA gives you more control over your investment.
The Accuplan platform is an example of the freedom of a self-directed IRA. It’s perfect for both businesses and individuals who want to make the most of their retirement portfolios. It enables you to access top investment opportunities all in one place.
3. Select Your Cryptocurrency Investments
Once you’ve set up your IRA and you’re ready to invest, it’s important to choose the right crypto option for your needs. Some investors prefer to start with big names like Bitcoin for an added sense of security while others explore more high-risk, high-reward possibilities. The Accuplan crypto center has top options laid out in an easy-to-understand platform.
Why Work With Accuplan for Your Crypto IRA?
Whether you’re trying to figure out how to invest in crypto or just looking to diversify your portfolio with digital currencies, Accuplan has the expertise to help you. Cryptocurrencies have shown rapid and substantial growth over the past decade, so it’s no surprise that more investors are interested in tapping into this market.
We have been helping our clients with nontraditional retirements for years, so we know what you’re looking for and we have the knowledge to help you succeed in retirement investing. We offer access to many top digital assets like Bitcoin, Ethereum, Litecoin and competitive crypto IRA fees. Our clients also enjoy 24/7 support and peace of mind from our robust security measures.
With our revolutionized crypto trading platform, trading has never been simpler. You can invest in our platform with or without a retirement account. Day traders will also appreciate that our trades settle in under a minute. It offers maximum convenience since you won’t need to create a third-party trading account. Unlike other broker IRAs, we fully support direct crypto and offer our clients experienced guidance and flat fees.
FAQs
If you still have uncertainties about investing in crypto, here are some frequently asked questions to ease your mind:
How Do I Invest in Crypto for the First Time?
To invest in crypto for the first time, you’ll need to learn about cryptocurrencies and blockchain. Use a reputable crypto trading platform and get expert guidance to make decisions based on market trends while maintaining compliance. As a beginner, it’s important to start with small investments and use crypto as a tool for diversification rather than your sole investment option.
Should I Invest My IRA Into Cryptocurrency?
If you want to diversify your portfolio, it’s wise to invest in cryptocurrency. Crypto IRAs offer advantages such as tax-free profits at retirement and strong growth potential.
Is Buying Crypto Worth It?
Buying crypto is worth it for anyone who wants to participate in the demand for digital currency. Cryptocurrencies show potential to be a good long-term option. Although they can be highly volatile, they can also yield high returns, making them a worthy choice for investors who already have stable investments and are looking for a high-risk, high-reward option.
Build a Thriving Crypto IRA With Accuplan
At Accuplan, we offer custodial services for a range of IRA options, including Roth, traditional and self-directed IRAs. For over 20 years, we’ve been helping investors diversify and strengthen their portfolios. With our crypto trading platform, we can help you invest in your retirement how you want.
Our employees are all professionals with at least nine years of experience and the capacity to help you develop a balanced, diverse and strong portfolio. With our self-directed IRAs and user-friendly platforms, we give you the power to grow your retirement savings to meet your financial goals and kick back in your golden years.
To get started, open a self-directed IRA for cryptocurrency through Accuplan today.
Disclaimer: Since we are in the investment and retirement realm, we clarify that our information shouldn’t be relied upon for investment advice but that this is simply for information and educational purposes only. It is not intended to provide, nor should it be relied upon for accounting, legal, tax or investment advice. We also don’t make guarantees.
