2. How bitcoin IRA works
Bitcoin IRAs, in some ways, work like regular IRAs. While you can set up one with any amount of funds, the IRS has set annual contribution limits: for 2020 and 2021, you can only contribute $6,000 a year (or $7,000 a year if you are 50 or older). Any returns, profits, or profits produced by the investments within them are tax-free.