One of the greatest points of divergence between legitimate and shaky Bitcoin IRAs is custody. Good custody is the foundation of safety; weak custody invites risk.
Legitimate Bitcoin IRAs partition client assets, store Bitcoin offline (cold storage), use multi-signature wallets or key splits, and carry insurance for losses. Some also provide regular security audits and public attestations. These are not optional extras — they’re baseline requirements if you want to treat the IRA as a serious custodian structure.
In contrast, some providers advertise Bitcoin IRAs but delegate custody to platforms with weak protections. That may leave assets vulnerable to hacks, insolvency, or misappropriation.
To see how custody practices tie into legitimacy, refer to Are “Bitcoin IRAs” Legit? What Legitimacy Really Means. It helps you translate marketing language into custody checks you can verify.
If a provider can’t clearly explain how your Bitcoin is protected, don’t hand over your retirement funds. Custody is the difference between structure and speculation.