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Alto Crypto IRA: Everything You Need to Know

9 mins read

Cryptocurrency changed the way people think about money. It provided the masses with another investment option which is unique and unregulated by the government. And the best thing is you can make massive money in no time. Alto Crypto IRA is the new player in town. It allows people to invest in assets using Individual Retirement Account (IRA) which are self directed. In this article, we will inform you about Alto Crypto IRA. There are many Alto reviews available but in our review, we will be a doing comprehensive breakdown of this investment method.

Alto Crypto IRA: Everything You Need to Know

Today investors are looking at different options to invest their money and earn a big profit. Alto Crypto IRA is one of those options. It allows investing in crypto as well as in art and properties. All this is mentioned in many Alto reviews but before explaining all the points let us understand Alto.

What is Alto Crypto IRA?

Alto website
Image by altoira.com

Alto can be described as a self-directed IRA custodian. What this means is that your Individual Retirement account on this platform gets the option to invest in a wider range of assets which includes investing in cryptocurrencies, artworks, farmlands, and more. Self-directed IRAs are nothing new but Alto Crypto IRA has revolutionized the field by introducing a cryptocurrency to the mix for the investors who wish to invest in it. But do not mistake the platform to be the source of investment rather it connects you with the third-party investment source.

You have the option to choose from two types of Alto accounts, the Alto IRA account or the Alto Crypto IRA account. In the former, you have 15 partners from various fields like managed crypto funds, private equity, etc. that you can invest in while the latter enables you to invest in a cryptocurrency that is not a part of any fund, and the crypto that you buy, sell or hold are through Coinbase. You can choose between either account or have both of them by paying charges for the same.

One might think that investing via Alto on Coinbase might mean that they now have a Coinbase account but that’s not the case here. Using Alto means that you are using Coinbase via it and not directly and thus you don’t need or get a Coinbase account. However, since Coinbase is the endpoint of this chain the crypto you buy, sell or hold depends on them. Only those cryptos that are available on Coinbase are the ones that you can deal in, be it small-cap or large-cap or whatever.

Your crypto holdings are stored in a digital wallet with Coinbase but since you are using it through Alto you don’t get access to the wallet and that means you can neither stake them nor transfer them to private wallets and you also don’t get any interest on your holdings.

Alto Fees

Fees section | Alto Crypto IRA
Image by altoira.com

We have learned what Alto Crypto IRA means and what Alto IRA means so it is only natural that we now turn to look at their prices. Each account commands a different charge and offers different facilities while also providing you with access to different partners. There are five types of fees involved in both these cases. Account fee, Custody fee, Trade/Partner investment fee, Account closure fee, and Outbound wire transfer fee.

So now we first look at Alto fees for the alternative account. Starting with the account fee, you pay 10 dollars a month or 100 dollars annually to get yourself the Alto Alternative account. The custody fee charged to you is 0 dollars. The partner investment fee is 10 dollars per transaction no matter which partner you use or how many times. If you want to close your account then you cough up 50 dollars and an outbound wire transfer would require you to shell out 25 dollars.

On the other hand, the crypto account comes with a 0-dollar account fee. The custody fee is also 0 dollars as was the case with the alternative account. The trade fee you pay is 1% while the account closure charge is the same at 50 dollars and an outbound wire transfer is also the same as it costs 25 dollars. So while the prices are somewhat similar the benefits offered by either account are different.

Since the Alternative account enables you to connect with 15 partners you must know that each minimum investment changes from partner to partner and you might also be required to be an accredited investor in some cases. Also, each partner has their fee structure and you can use this account to invest in stuff like private companies, startups, real estate, farmland, and art. However, you can’t invest in equities via this platform.

Apart from Alto crypto IRA and an alternative account you also had a pro plan earlier which would allow you as an investor to bring in your deal, however, it no longer exists. Also, signing up for an alternative account does not mean you are free from paying the partner’s charge. You pay a charge to Alto and the partner as well as per their charges. Let us now check out some Alto reviews.

Also Read: 21 Best Bots for Crypto Trading

Alto Reviews

Reviews section
Image by altoira.com

We know a bit about the platform and the fees that it asks of you in case of either account but the real question is if the platform is worth it. Yes, they introduced cryptos to their platform which is a good thing but they removed the pro plan which made the platform better and customer-oriented while they also don’t allow you to invest in equity. So with positives and negatives, plenty we reach a point where we need to look at the Alto reviews to see what the existing or old uses of the platform have to say about it and what that means for you.

We turned to Trustpilot, a trusted and popular rating website to check for reviews. On the platform, Auto IRA gets a strong rating of 4.5 stars from more than 1,000 reviews submitted. Of the total reviews, more than 70% of people gave Auto Crypto IRA and Auto Alternative offering platform, Auto IRA a five-star rating. The remaining votes saw the platform get a 14% four-star rating, 5% three-star rating, 3% two-star rating, and 6% one-star rating.

Good Reviews

Thomas Daly from the US gave the platform a five-star rating because it helped him rescue his funds from the traditional 401ks where his money sat idle and wasn’t being used to its full potential. But he moved his funds from there and put them in Alto and is now invested in various stuff like art, farmlands, and whatnot for which he thanks this platform.

Steve from the US who in the past had a not-so-good experience with the customer service team of Alto also gave the platform a five-star rating because, in his most recent experience, he found the team to be patient while dealing with him and also answered tons of his questions.

Karl from the US is another user who gave the platform a 5-star rating for a great experience with a customer service executive of the company. Frederick Bartholomew also gave the Alto Crypto IRA and Alternative account provider, Alto a five-star rating as he said that the signing up process was simple and easy while also mentioning how and what can be done on the platform. Let us now look at some bad Alto reviews.

Bad Reviews

Andy K from the US was not happy with Alto as he gave them a 1-star rating. The reason for this is the 50-dollar closure charge that they were forced to pay. It seems that the user forgot to read the Terms and Conditions closely and this is what led to them being left in the mud.

R. Ladue from the US would have given the platform a minus rating if that was possible as she has so many issues and complaints regarding the Alto platform. None of her transactions went through on the first attempt and her experience with the customer service team also wasn’t a favorable one as she strongly recommended not using the app.

Jeff Stone from the US also gave a one-star rating to Alto for a range of issues. The monthly statements were problematic, distributions given were labeled incorrectly, and the amount receivable of the other person was sent to their account and vice versa. Nabil from the US also had issues with Alto as he said that the website left too much to be desired while also saying he couldn’t recommend the platform to others.

So that was all on Alto reviews. A lot more reviews are out there for you to look at before you have to make a decision. Anyways we move on to the next topic.

Alto Self Directed IRA

We saw above that Alto is a self-directed IRA custodian but what do all these terms mean? While IRA stands for an individual retirement account, and in this context self-directed means more open and less limited. Together, a self-directed IRA means a more modern type of retirement account where you are allowed to invest in various assets that the traditional account wouldn’t support. With Alto self directed IRA the biggest addition or change is the introduction of crypto.

Regular IRAs where a bank or brokerage firm is your custodian don’t allow you to invest in stuff like cryptos or artwork, farmlands, and other such assets but this is where the game changer comes in. But the important thing to keep in mind is that when using Alto Crypto IRA or the alternative account the asset you buy is held by your custodian which is purchased from one of their partner platforms. You don’t hold these assets nor are they bought by the Auto IRA platform.

While there is not much to worry about when using Alto there might be stuff that you need to be aware of.

How to get yourself an Alto account?

Getting started section | Alto Crypto IRA
Image by altoira.com

At this point surely quite a few of you must be wondering about getting an Alto crypto IRA or an alternative account. Whether you get one or not is your choice to make but our job is to help you out with any and every bit of necessary detail that you might need down the line and that is why we will now tell you a bit about how you can set up or get yourself an account.

The first step would be to head to their website which would look something like as shown at the start of the article. On the top right-hand side of the page, you will see the burger menu, click on it, and in the drop-down menu you will see the option of sign up and log in.

If you select the signup page then you will be taken to a screen that looks as shown above. Here you enter your email id and password and accept the terms and conditions and create the account. Or you head to the login page if you already have an account and again enter your email id and password and click on log in.

You are now given the choice of choosing among a traditional IRA, Roth IRA, or SEP IRA. Once you are done choosing from these options the next task is to choose between Alto crypto IRA or an alternative account.

After this, you need to put funds in this account via deposit or by transferring funds from another account to this account. And with that, you are now good to go ahead and start investing in any eligible asset you wish to.

Also Read: What is Crypto Insurance? How does it Work?

Pros and Cons Alto or not

We saw positive as well as negative Alto reviews and also saw the pricing of the platform. We tried to understand what the platform is and what services it was willing to offer and the advantage or benefits that Alto has over the traditional IRA and we also saw areas where it fell short of the mark. Now since both sides of the argument are strong let us compare their pros and cons.

Pros

Alto is a significant step ahead in the IRA sector when compared to traditional IRAs. Cryptocurrency, call it a trend or a facade you can’t deny that they are the asset of the moment. Everyone seems to want a piece of it right now and that was something that the IRA was not offering until Alto stepped up and introduced the Alto Crypto IRA account that made buying, holding, and selling crypto possible. This is a hugely welcome step taken by them with the next big step being moving towards staking various cryptos.

The next big thing to consider is that apart from cryptocurrencies the platform also allows you to invest in various other assets that traditional IRAs don’t offer. Be it investing in startups, real estate, farmland, artworks, etc. This gives you a chance not only to diversify your portfolio but also to bring a lot of flexibility to the investing options for you.

The fee charged by Alto is low and the minimum investment amount is also low and which can play a huge role in attracting new users to come forward and use this platform. Also, the fee structure of the platform is flat, which means it does not change depending on the amount, and that again can be effective in pulling new users.

Cons

While the Alto crypto IRA account lets you hold cryptocurrencies there is not the same level of privacy or control that you would have with a crypto exchange. The cryptos purchased through this platform, for now, can’t be staked while beta tests are on for the same. You can’t transfer the cryptos, you don’t get paid any interest on them, you can’t put them in an external wallet, and nor do you hold the private key for the coins or tokens.

You don’t have many of the options of investment that you would have with a traditional IRA. And the most notable absence among these would be that of equities. Alto does not allow you to invest in equities and that has to be one of the biggest reasons to consider when opting for it as many old people might still not have made a switch from equities to cryptos yet.

While the options to invest in are many, the risks they bring are also many. You need to have an idea about all the alternative fields that you plan to invest in. You need to do proper research and keep up with updates from all corners to be able to make the right decision to avoid losing money on any investment.

Sushma Singh

Sushma is a financial expert and online entrepreneur. With years of experience in personal finance and business management, she is dedicated to empowering individuals to take control of their finances and make smart investment decisions. Through Moneymint's website, she provides insightful tips, strategies and resources to help individuals grow their wealth and achieve financial stability. Join Sushma on the journey to financial freedom today!

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