Last Updated on April 17, 2024 by Ben

Can I Put My 401k In Bitcoin?

Bitcoin has recently gained a lot of attention. The digital currency has seen a meteoric rise in value, and many people wonder if they should invest in it. But what about your 401k? Maybe you are also wondering, “Can I put my 401k in Bitcoin?” In this blog post, we will explore the possibility of investing in Bitcoin through your 401k. We’ll discuss the advantages and disadvantages of doing so and help you decide if it’s right for you.

Investing In Bitcoin With Your 401(k)

Some people believe that investing in Bitcoin is a good idea because it is a new and innovative technology. They also see the potential for Bitcoin to become a global currency. However, others believe that the volatile nature of the currency makes it too risky to invest in.

Another consideration is whether or not your employer offers a 401k plan that allows you to invest in Bitcoin. If they do not, you need to rollover your 401k into an IRA, which can be a complicated and time-consuming process.

Before investing in Bitcoin through your 401k, it’s essential to weigh the pros and cons. Consider your personal views on the currency and the risks involved. Speak with a financial advisor to get more information. Ultimately, the decision is up to you.

Reasons to Pay Your Employer To Be Conservative With 401(K)

◉  Most 401(k) plans have limited investment choices.

The typical 401(k) plan offers participants a selection of mutual funds and professionally managed portfolios of stocks and bonds. Some 401(k) plans also offer participants the opportunity to invest in company stock, and a few Plans offer participants the opportunity to invest in a self-directed brokerage account.

Generally, the investment choices offered in 401(k) plans are not as diverse as an investor’s investment choices if they were investing in a personal brokerage account. This is because employers want to offer their employees a retirement savings plan that is simple to understand and easy to administer.

Offering a wide variety of investment choices would make the 401(k) plan more complicated and require the employer to provide employees with more education about investing. Most employers are not willing to make this commitment, and as a result, most 401(k) plans offer a limited selection of investment choices.

◉  401(k) plans are subject to ERISA rules and regulations.

ERISA is federal legislation that establishes essential criteria for most freely created retirement and health plans in the private sector to protect participants. Under ERISA, employers who offer 401(k) plans must adhere to certain rules and regulations regarding the plan’s operation, including the selection of investment options. As a result of these rules and regulations, employers are generally conservative regarding the investment options they offer in their 401(k) plans.

◉  Most employers match a portion of their employees’ contributions.

Suppose an employer offers a 401(k) plan with a 50% match on employee contributions, and an employee contributes $100 per month to the plan. The employer would contribute $50 per month to the plan. The employer’s contribution is usually invested conservatively because the employer wants to ensure that the money they contribute to the plan is not at risk of being lost.

◉  Provides more job security to employees.

Finding a job with an employer that offers a 401(k) plan is often simpler than finding a job with an employer that does not offer a 401(k) plan. This is because employers who offer 401(k) plans are typically larger, and they tend to be more stable than smaller employers. As a result, employees who have a 401(k) plan through their employer are usually more secure in their jobs than employees who do not have a 401(k) plan.

◉   401(k)s offer tax breaks.

The money in your 401(k) grows tax-deferred, so you don’t have to pay taxes until you withdraw it. This might be a considerable benefit if you expect to be in a higher tax bracket when you retire.

◉  401(k)s force you to save for retirement.

If your employer offers a 401(k) match, that’s free money! Not taking advantage of it would be like leaving money on the table.

◉  401(k)s are easy to set up and contribute to.

You have to sign up for an account and start contributing. And if your employer offers automatic payroll deduction, it’s even easier because the money will be deducted from your paycheck before you even see it.

◉  You can borrow from your 401(k).

You may normally borrow money from your 401(k) without paying any taxes or penalties if you need money for a financial emergency. Just make sure you pay back the debt in five years.

◉  You can cash out your 401(k) when you retire.

When you retire, you can choose to cash out your 401(k) or roll it over into an IRA. If you cash out, you’ll have to pay taxes on the money, but you can avoid paying taxes if you roll it over.

Ways To Invest Retirement Savings in Bitcoin

Many people are wondering if they can put their 401k in Bitcoin. While there are a few ways to do this, it’s important to know the risks involved before investing in retirement savings. Here are four ways to invest retirement savings in Bitcoin:

  • Bitcoin IRA: A Bitcoin IRA is an Individual Retirement Account that allows you to hold and invest in Bitcoin. There are a few different Bitcoin IRAs, but they all work similarly to traditional IRAs. The main difference is that you can invest in cryptocurrency instead of stocks or mutual funds with a Bitcoin IRA.
  • Bitcoin Futures: Bitcoin futures are contracts that allow you to buy or sell Bitcoin at a set price at a future date. These contracts are traded on exchanges and can be used to hedge against the price of Bitcoin.
  • Bitcoin ETFs: A Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin. ETFs are a type of investment vehicle that allows you to invest in a basket of assets, and they trade on major stock exchanges.
  • Bitcoin Mining: Verifying and uploading transactions to the blockchain is all about bitcoin mining. Miners are rewarded with Bitcoin in exchange for their work, which they may sell for cash. Mining is a risky business, but it might be a feasible way to make money with Bitcoin if you have the resources and know-how.
  • Buy Bitcoin directly: sites like Coinbase and Gemini allow you to buy Bitcoin directly with your fiat currency (i.e., USD).
  • Put your 401k into Bitcoin: some retirement plans allow you to invest directly in Bitcoin. To discover if this is a possibility, check with your plan administrator.
  • Lend Bitcoin to earn interest: sites like Bitbond and BTCjam allow you to lend Bitcoin to others and earn interest on your loan.
  • Trade Bitcoin on an exchange: numerous online exchanges will enable you to buy and sell Bitcoin. Choose a reliable firm with a proven track record.
  • Hold your Bitcoin: sometimes, the best thing is to hold onto your Bitcoin and wait for the price to go up. This is known as “HODLing” in the Bitcoin community.

Pros and Cons of Investing in Bitcoin IRAs

There are several alternatives accessible when it comes to retirement investment. With the current rise in popularity of cryptocurrencies, you may be asking if your 401(k) may be invested in Bitcoin. Before making any decisions, it’s essential to weigh the pros and cons of any investment. So, let’s take a look at some of the potential benefits and risks of investing in Bitcoin IRAs.


  • The possibility of high returns. If you’re investing in a traditional IRA, you’re limited to the stock market’s average return of around 12%. With a Bitcoin IRA, however, you have the potential to see much higher returns.
  • The ability to hedge against inflation. Because it is not susceptible to the same dynamics as traditional investments, Bitcoin is sometimes viewed as a tool to protect against inflation. If inflation does happen, your investment will be worth more in Bitcoin than it would be in dollars.
  • The possibility of diversifying your portfolio. If you’re invested in a traditional IRA, you’re likely only invested in stocks and bonds. By investing in a Bitcoin IRA, you can add another asset class to your portfolio, which could help balance out any losses you might experience elsewhere.


  • The volatility of Bitcoin. While the potential for high returns is there, so is the potential for high losses. If the price of Bitcoin goes down, you could lose a significant amount of money.
  • The lack of regulation. Because Bitcoin is still relatively new, it’s not yet regulated by the government. If something goes wrong, you may not have any recourse.
  • The potential for scams. Because Bitcoin is still relatively new and unregulated, there are a lot of scams out there. Be sure to do your research before investing in anything.

Steps to Take to Convert Your 401(k) Savings Into Bitcoin

If you’re thinking about converting your 401(k) savings into bitcoin, there are a few things you need to know before taking the plunge. Here are a few steps you should take to make sure the process goes smoothly:

➤  Open and fund a self-directed digital IRA.

Most 401(k) plans don’t give you the option to invest in alternative assets like cryptocurrency. Opening a self-directed Individual Retirement Account (IRA) is one approach to get around this (IRA). With a self-directed IRA, you can choose to invest your retirement savings in any asset allowed by the IRS, including Bitcoin and other digital assets.

➤  Use Bitcoin Exchange Partner Genesis

Genesis is the premier bitcoin exchange partner for those looking to convert their 401(k) savings into bitcoin. The process is simple: first, set up and fund your account with Genesis, then use their easy-to-use platform to convert your savings into bitcoin.

➤  Store your bitcoin in a digital wallet.

Once you’ve converted your 401(k) to bitcoin, you’ll need to store it safely. Using a digital or bitcoin wallet is the easiest method to achieve this. This piece of software allows you to store, send, and receive bitcoin. There are many different wallets available, so be sure to choose one that’s reputable and easy to use.

Final Thoughts – Can I Put My 401k In Bitcoin?

You can put your 401k into Bitcoin – but you should only do so if you’re comfortable with the risks involved. If you’re not sure if cryptocurrency is ideal for you, go to a financial adviser, and they’ll be able to assist you in making the best decision for your situation.

Scroll to Top