Many firms will tout “Bitcoin IRAs” with flashy claims—“zero fees,” “IRS approved,” “guaranteed returns.” Frequently, these are marketing ploys rather than evidence of legitimacy.
One red flag is any claim of “IRS approval” or that the IRA is “pre-approved” by federal agencies. The IRS explicitly does not review or endorse specific investments for IRAs. CFTC
Another warning sign is excessive secrecy around custody. If a provider won’t clearly state how your crypto is stored (cold wallet, multi-sig, insurance), that’s suspicious. Legitimate IRAs are upfront about security.
Also beware if they push you to control the private keys personally. That can violate IRA custody rules and expose you to prohibited transactions.
Some providers bury fees in small print or present “hidden markups.” Always request a full fee schedule from day one.
A helpful guide to understanding legitimacy standards is Are “Bitcoin IRAs” Legit? What Legitimacy Really Means. It lays out what good providers should disclose and what claims you should question.
If a provider’s pitch seems too good to be true, run it through that legitimacy checklist. That’s how you avoid marketing traps and preserve your retirement capital.