iTrustCapital vs. BitIRA

Written by Banks Editorial Team
4 min. read
Written by Banks Editorial Team
4 min. read

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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 and companies. 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. 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.

Invest In Crypto for Retirement

2187 Reviews
Learn how you can invest in cryptocurrency as part of your retirement plan using the self-trading platform iTrustCapital.

What Does iTrustCapital Offer?

iTrustCapital offers traditional IRA, Roth IRA, and SEP IRA solutions. In these retirement accounts, you can purchase cryptocurrency or physical gold and silver. iTrustCapital currently offers over 25 cryptocurrencies. The company also lets investors buy physical gold and silver, two historically reliable inflation hedges.

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 25 choices. BitIRA has IRA accounts for roughly 20 cryptocurrencies. iTrustCapital has slightly 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 trade cryptocurrencies. You won’t have to pay any additional fees for iTrustCapital. The company has a $1,000 minimum investment 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.

iTrustCapital vs. BitIRA: Security

Both companies insure their crypto holdings and have several security protections. BitIRA focuses on cold storage to take your crypto off the grid. iTrustCapital leans on cold storage, multi-factor authentication, institutional wallet 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.

Invest In Crypto for Retirement

2187 Reviews
Learn how you can invest in cryptocurrency as part of your retirement plan using the self-trading platform iTrustCapital.

Advantages and Disadvantages of iTrustCapital

An iTrustCapital crypto IRA gives you a wide selection of cryptocurrencies. You can select from over 25 virtual currencies and accumulate tax-free capital gains. iTrustCapital comes with great security features and lower minimum investment than average. Some crypto IRAs require $20,000 to get started, while iTrustCapital only requests a $1,000 minimum investment. 

iTrustCapital has a reliable 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, precious metals, equities, and other assets.

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 turn those dollars into crypto. If you want to invest your existing crypto in a self-directed Roth IRA, you have to sell your crypto first and then invest the proceeds. The problem with this approach is that you will trigger capital gains taxes on profitable investments. You can’t take a well-timed crypto investment from several years ago and park it inside a crypto IRA you recently created.

iTrustCapital was established in 2019, giving it only a few years of experience. Granted, iTrustCapital has hit the ground running and has helped create over 150,000 individual retirement accounts. The company recently received a $1.3 billion valuation. 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.

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 visiting their website. Click “Open Account,” fill in the details, and wait for your confirmation email. After clicking the confirmation email link, you will get directed to the crypto IRA application. iTrustCapital will ask you for important details such as your funding source and beneficiaries. After getting approved, you can start investing in crypto and get tax-free capital gains.

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 get 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.

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