Individual retirement accounts help millions of people plan their financial futures. Most investors think about stocks and mutual funds, but you can invest in alternative assets in self-directed IRAs. The alternative assets class covers significant ground, from real estate and precious metals to crypto. Crypto IRAs enable investors to build cryptocurrency positions without paying taxes on capital gains. Investors who believe Bitcoin and other digital currencies have more room to run may like this choice. The past financial performance of cryptos like Bitcoin surpasses the stock market and other investments, although past performance is no guarantee of future results. Getting a similar return on Bitcoin or an altcoin without having to pay taxes can provide you with substantial retirement savings.
iTrustCapital and BitIRA both offer cryptocurrency IRAs. The tax advantage of IRAs provides many opportunities, but picking the wrong IRA can lead to hefty fees. We’ll share the advantages and disadvantages of both options, so you know which one is right for you.
Best Crypto Exchange Apps
Kraken is a Bitcoin and cryptocurrency exchange platform to sell, buy and trade cryptocurrencies no matter your trading experience level.
Gemini is a cryptocurrency exchange, digital wallet, and custodian to securely store crypto and easily buy and sell cryptocurrencies.
Nexo is helping crypto holders earn interest on crypto and borrow cash and stablecoins. In this Nexo review, learn what the company offers.
Coinbase is a cryptocurrency exchange app to sell and buy crypto as an individual or as an expert crypto trader using Coinbase Pro.
What Does iTrustCapital Offer?
iTrustCapital is a leading fintech software platform for alternative assets. The company provides 24/7 access to digital assets, cryptocurrencies, and precious metals through self-directed, tax-advantaged IRA, and Non-IRA account options. iTrustCapital provides traditional IRA, Roth IRA, and SEP IRA plans from which you can invest in crypto and other alternative assets. They also have a Premium Custody Account,(PCA), a non-IRA (non-retirement) account that allows clients to buy and sell crypto 24/7. Unlike their Crypto IRAs, PCAs have no maximum contribution limits, and transactions are taxable. iTrustCapital makes it particularly easy to invest in physical gold and silver, two historically reliable inflation hedges. The company charges a 1% transaction fee and does not charge setup or monthly payments.
What Does BitIRA Offer?
BitIRA is an early player in the Bitcoin IRA industry. They have insured cold storage to keep your digital currencies safe. As a result, your cryptocurrencies can grow tax-free. Investors won’t have to worry about capital gains when it’s time to sell assets. A BitIRA custodian will look over your account, and you can trade crypto through BitIRA’s exchange. The IRA custodian acts as a guardian, but you get the final say and full control of every decision. You won’t have to worry about private keys, storage, or the other technical elements of cryptocurrencies.
iTrustCapital vs. BitIRA: Supported Cryptocurrencies
iTrustCapital and BitIRA each support Bitcoin and Ethereum, the two largest cryptocurrencies. iTrustCapital’s library of cryptocurrencies extends to over 80 choices. BitIRA has IRA accounts for roughly 20 cryptocurrencies. iTrustCapital has more options, but most crypto investors will be happy with the choices that both companies provide.
iTrustCapital vs. BitIRA: Fees and Minimum Investment
iTrustCapital charges a 1% transaction fee each time you buy and sell cryptocurrencies. You won’t have to pay any additional fees for iTrustCapital. The company has a minimum investment of $1,000, which is lower than most crypto IRAs. BitIRA has a $5,000 minimum investment, which is also lower than average, but iTrustCapital provides a lower barrier to entry. You’ll also have to contend with a $50 setup fee for a BitIRA account. BitIRA has trading fees that vary based on partners and order volume. You can also expect a 0.05% per month storage fee from BitIRA.
Best Crypto Exchange Apps
Kraken is a Bitcoin and cryptocurrency exchange platform to sell, buy and trade cryptocurrencies no matter your trading experience level.
Gemini is a cryptocurrency exchange, digital wallet, and custodian to securely store crypto and easily buy and sell cryptocurrencies.
Nexo is helping crypto holders earn interest on crypto and borrow cash and stablecoins. In this Nexo review, learn what the company offers.
Coinbase is a cryptocurrency exchange app to sell and buy crypto as an individual or as an expert crypto trader using Coinbase Pro.
iTrustCapital vs. BitIRA: Security
BitIRA focuses on cold storage to take your crypto off the grid. iTrustCapital leans on cold storage, multi-factor authentication, third-party institutional storage providers, and video conferencing authentication. For example, if you make a large withdrawal, you will have to prove your identity in a video call. This extra step makes it difficult for hackers to steal funds from your account. Hackers may find your ID online and get enough details to trick someone, but video proof makes it nearly impossible for hackers to deceive the system.
Advantages and Disadvantages of iTrustCapital
An iTrustCapital crypto IRA gives you a wide selection of cryptocurrencies. You can select from over 80 virtual currencies and accumulate tax-free capital gains. iTrustCapital comes with great security features and a lower minimum investment than average. Some crypto IRAs require $20,000 to get started, while iTrustCapital has a $1,000 minimum investment.
iTrustCapital has a reliable, award-winning US-based customer service team that responds to emails and phone calls. In addition, the company provides several support articles that explore common questions. You can also browse through their learning articles to develop an investment strategy and discover new cryptocurrencies. iTrustCapital makes it easy to diversify your portfolio with crypto and precious metals.
While iTrustCapital has several advantages, it has a few disadvantages to keep in mind. Most crypto IRAs will not take your existing crypto, including iTrustCapital. You have to invest U.S. dollars or another fiat currency into your crypto IRA and then buy and sell crypto. If you want to invest your existing crypto in an IRA, you can only do so if you are transferring from another crypto IRA provider.iTrustCapital was established in 2018, giving it only a few years of experience. Some people may want to work with a company with more experience, but others can look the other way if the company makes significant progress in a short timeframe.
Best Crypto Exchange Apps
Kraken is a Bitcoin and cryptocurrency exchange platform to sell, buy and trade cryptocurrencies no matter your trading experience level.
Gemini is a cryptocurrency exchange, digital wallet, and custodian to securely store crypto and easily buy and sell cryptocurrencies.
Nexo is helping crypto holders earn interest on crypto and borrow cash and stablecoins. In this Nexo review, learn what the company offers.
Coinbase is a cryptocurrency exchange app to sell and buy crypto as an individual or as an expert crypto trader using Coinbase Pro.
Advantages and Disadvantages of BitIRA
BitIRA offers mainstream cryptocurrencies and several altcoins. You can choose from almost 20 cryptocurrencies for your IRA. Most investors will be happy with the selections from BitIRA and iTrustCapital. BitIRA has a $5,000 minimum investment, which exceeds iTrustCapital, but the minimum investment is lower than the industry’s average. BitIRA uses cold storage and eliminates the technical concerns of crypto. You don’t have to worry about keeping your private key or storing your crypto.
BitIRA has a dedicated customer support team that answers emails and phone calls. They also provide support articles and educational resources to answer more of your questions. The company has a useful Cryptocurrency Allocation Engine that calculates the return on your investment over a set number of years. BitIRA was founded in 2017 as the first insured crypto IRA, giving them more experience than iTrustCapital. Both companies are relatively new, which is understandable since cryptocurrencies are a new asset class.
Investors considering BitIRA should ask about the fees. BitIRA states some of its fees, such as the 0.05% monthly storage fee and $50 setup fee. iTrustCapital clients avoid these fees and have a 1% transaction fee on every trade. BitIRA doesn’t have a set transaction fee on each trade. It varies based on several factors, and you’ll have to reach out to someone to figure out how much these fees will cost for your personal account.
How To Open an Account with iTrustCapital
You can create an iTrustCapital account by accessing their website or mobile app. Click “Open Account,” fill in the details, and wait for your confirmation email. After clicking the confirmation email link, you will be directed to the crypto IRA application. iTrustCapital will ask you for important details, such as your funding source and beneficiaries. After getting approved and funding your account, you can start investing in crypto with get tax-free capital gains.
Best Crypto Exchange Apps
Kraken is a Bitcoin and cryptocurrency exchange platform to sell, buy and trade cryptocurrencies no matter your trading experience level.
Gemini is a cryptocurrency exchange, digital wallet, and custodian to securely store crypto and easily buy and sell cryptocurrencies.
Nexo is helping crypto holders earn interest on crypto and borrow cash and stablecoins. In this Nexo review, learn what the company offers.
Coinbase is a cryptocurrency exchange app to sell and buy crypto as an individual or as an expert crypto trader using Coinbase Pro.
How To Get Started with BitIRA
Creating a BitIRA account isn’t as straightforward as the other crypto IRAs. You will have to enter your details to request the company’s free info guide. This guide walks readers through digital IRAs and comes with no obligation. You’ll then be presented with the option to create a crypto IRA account through BitIRA. It’s a little more convoluted to reach the objective, but you get a helpful resource that educates you on investing in a crypto IRA.
