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Best SMSF Crypto Wallets[Step by Step Complete Guide]


SMSF are increasingly investing in cryptocurrencies for diversity and hedging reasons, but very few SMSF members, trustees are aware of securing their crypto assets with the best SMSF crypto wallet options.

Just like with collectible assets such as gold and diamonds; which must be held at arm’s length, SMSFs holding cryptocurrency must ensure their wallets are separate from their personal crypto investment holdings.

Surprisingly, there are many funds that are still mixing personal crypto with SMSF crypto holdings by using the same Ledger or Trezor cold wallet to store both personal and SMSF crypto. This is a clear breach of the ‘separation of assets’ requirements under the super laws, which may result in fines, penalties, and a loss of the fund’s compliance status with all assets taxed at a 45% tax rate.

Investing in cryptocurrencies in an SMSF comes with, volatility, complexity, and security risks, so it’s worth getting the best SMSF crypto wallet practices in place.

Types of SMSF Crypto Wallets:

The two best SMSF crypto wallet solutions are the following.

  • Exchange (HOT) wallet

These are wallets provided by the exchange, where SMSF members hold their crypto assets. They are the least secure as SMSF holders don’t actually control or own the assets, just like in a retail or industry fund where super members are beneficial owners.

Many crypto investors are familiar with the phrase ‘ Not your keys, not your crypto’ this is the alarming fact about crypto held in an exchange’s hot wallet.

  • COLD wallet – Ledger, Trezor, or Similar Wallets

cold storage wallets offer the best security against cyber attacks, exchange hacks, and key person risks. Further, you own and control your crypto when your SMSF holds crypto on a cold storage wallet.

Some of the Best SMSF crypto wallet options include:

  • The ledger Nano S, X, or Blue
  • The Trezor
  • The Keep key wallet

In order to observe the ‘ separation of assets ‘; in section 4.09a; of the super laws, SMSFs must purchase a cold wallet using funds from the SMSF cash account and ensure that the cold wallet only holds the funds SMSF crypto assets on behalf of its members.


Managing an SMSF with crypto assets, requires, knowledge and experience. In order to set up a fund and manage its yearly activities, which include.

  • Setting up a fund
  • Reviewing and updating the SMSF Investment strategy
  • Financial statements, accounting, and arranging a yearly My SMSF uses a panel of independent auditors and accountants to attend to our clients

Fixed cost SMSF online accounting providers like My SMSF / My SMSF Property provide a range of tools for most self-directed SMSF members.

Purchasing Cryptocurrency in an SMSF:

Once you have set up your SMSF, it is time to make the initial crypto investment for your SMSF. Cryptocurrency assets ( Coins) should be purchased through an Australian-based exchange in the name of your SMSF. My SMSF does not impose any crypto exchange restrictions or restrictions on the type of coins you purchase.

My SMSF’s crypto establishment package is an option for many SMSFs that want the best SMSF crypto wallet solutions.

We assist with the exchange account setup provide the fund with a Ledger or Trezor Cold wallet We provide members with a setup guide

These steps ensure the SMSF is compliant and set up properly for its SMSF members with the best SMSF Wallet solutions.

Setting up your SMSF Crypto Wallet:

After you make your initial crypto purchase in the name of your SMSF through an Australian-based exchange. The next step is to use the My SMSFs set up guide or service to transfer your crypto assets from the exchange’s hot wallet to the best SMSF wallet solution, which is a Cold storage wallet like a Trezor or Ledger wallet.

Next, you need to generate the RECEIVE address from your Ledger wallet and copy it or QR scan the address to the exchange hot wallet. Make sure you generate an address for the coin you are transferring. Such as the Bitcoin RECEIVE address for Bitcoin.

For annual audit purposes, take a screenshot of the assets held in your Ledger wallet via the Ledger ‘Live’ App and email this to us at tax time.

There are other proofs, that our tax agents and auditors will request, to verify that you hold your crypto assets in your wallet.

Auditing SMSF Crypto Wallets:

A challenge that most providers face is ensuring there is proof of the wallet purchase by the SMSF.

At My SMSF, we have the experience and knowledge on all matters crypto and for SMSF members that purchase our crypto setup service, you’ll have peace of mind that we have verified the following steps:

  • An exchange account is set up in the name of the fund
  • Wallet purchased using funds from the SMSFs cash account

At audit time, our clients are prompted to sign a document, which confirms that the crypto wallet is owned by their SMSF. My SMSF clients can use our SMSF Crypto Portfolio Valuation tool which generates a Valuation report based on accounting standards.

SMSF Related Party Transactions:

As with maintaining a separation of assets to ensure compliance, the super laws prohibit members from transferring funds from personal wallets to SMSF crypto wallets, unless it’s deemed a contribution to the SMSF subject to the contribution laws. Seek legal advice on all crypto transactions


  • Your SMSFs may obtain the investment returns expected by its
  • Even if you and your SMSF trustees decide to get professional help, no matter what happens, you will be held liable for all.
  • Crypto Assets are extremely volatile, subject to changes in legislation, complex to secure and hold, and therefore are deemed extremely risk.
  • Key person risks, hacks, loss of private key, counterparty risks are further considerable risks with crypto investing.
  • The AFCA (Australian Financial Complaints Authority) offers special compensation for retail and industry super funds in case of theft or fraud. This does not apply to SMSFs holding crypto assets.

Obtaining the best SMSF Crypto wallet solution and advice can help safeguard your SMSF crypto assets and your SMSFs retirement goals.


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