Bitcoin started the crypto boom, rising from $13.50 at the end of 2012 to an all-time high above $65,000 in 2021. Bitcoin has cooled off since its all-time high, but we also saw this pattern in 2018. The volatile, high-risk, high reward asset has provided an incredible financial performance that trounced the stock market. The major downside with high capital gains is the subsequent taxing season. The IRS will stretch out its hand and ask for some of those proceeds. If you put your Bitcoin holdings into a crypto IRA account, you won’t have to worry about taxes on your capital gains.
iTrustCapital and BlockMint each provide their users with crypto IRAs. You can accumulate Bitcoin and other cryptocurrencies without worrying about long-term taxes if you put them in a Roth IRA. Investors with more time on their hands often use products like Roth IRAs for tax protection. A flexible time horizon helps investors ride several market conditions. iTrustCapital and Blockmint offer a similar service, but they have some differences. We’ll navigate the pros and cons of each business and make a recommendation for readers.
Invest In Crypto for Retirement
iTrustCapital provides traditional IRA, Roth IRA, and SEP IRA plans from which you can invest in crypto and other alternative assets. iTrustCapital makes it particularly easy to invest in physical gold and silver, two historically reliable inflation hedges. Over 150,000 people use iTrustCapital for their retirement planning. The company has helped manage over $5 billion in transactions and charges a 1% transaction fee. The company does not charge setup or monthly payments.
How Does iTrustCapital Work?
iTrustCapital lets you invest fiat currency such as the U.S. dollar into cryptocurrency. You can trade various cryptos on the platform. iTrustCapital currently provides support for over 25 cryptocurrencies. Proceeds in your iTrustCapital Roth IRA don’t get taxed in the future. You’ll pay taxes on contributions, but capital gains and distributions are free from tax payments.
iTrustCapital uses Coinbase Custody and Fireblocks to provide assurance for crypto investors. These insurance policies provide coverage in case a hacker steals some crypto. The IRA provider has many protections that prevent this scenario, such as two-factor authentication. Users also have to jump on a video conference call to confirm their identity before making large withdrawals. While this is an extra step to get your funds, additional measures like these keep hackers away from your holdings.
BlockMint Technologies Inc. is a subsidiary of Lear Capital, a precious metals IRA provider. The parent company has managed over $2 billion in assets and has recently entered crypto IRAs. Cryptocurrency owners can trade Bitcoin, Ethereum, and Litecoin through the current version of Minter. You won’t have to worry about capital gains taxes with a self-directed IRA.
How Does BlockMint Work?
Blockmint acts as a broker between your order requests and the custodian. Blockmint helps with cold storage to keep your funds safe. Investors using Blockmint can gain exposure to Bitcoin and other cryptos without worrying about the technical elements.
iTrustCapital vs. BlockMint: Pricing and Fees
An iTrustCapital crypto IRA comes with fewer fees. You’ll only have to pay a 1% transaction fee on every trade. iTrustCapital does not charge any other fees. BlockMint charges a far higher 15% commission fee on purchases. While this commission is far higher than iTrustCapital’s 1% fee, BlockMint has discounts available for large volume orders. Even then, the 1% transaction fee is more attractive to many investors. BlockMint also charges $200 per year for storage and annual custodian service fees. These service fees vary based on your account size, the cryptos in your account, and a number of factors.
iTrustCapital vs. BlockMint: Minimum Investment Amounts
iTrustCapital and BlockMint each have minimum investment amounts, but iTrustCapital has a lower barrier to entry. iTrustCapital has a $1,000 minimum investment for a crypto IRA account. BlockMint requires at least $20,000 to open up an account with them. Investors with fewer funds can get started with iTrustCapital sooner and get access to more cryptos.
Invest In Crypto for Retirement
iTrustCapital vs. BlockMint: Features
iTrustCapital and BlockMint let you put cryptocurrencies in your retirement savings account. Both companies also give you exposure to precious metals such as gold and silver. iTrustCapital and BlockMint use several safety features to protect your crypto. iTrustCapital uses protective measures such as cold storage, insurance policies, two-factor authentication, and video conferencing for large transactions. BlockMint uses cold storage partners to keep your crypto off the grid.
Pros and Cons of iTrustCapital vs. BlockMint
Investors use iTrustCapital and BlockMint for the same reason: they want to put crypto in an individual retirement account. We’ll outline some advantages and disadvantages of each crypto IRA solution so you know which one is right for you.
Pros of iTrustCapital
Not everyone likes Bitcoin and Ethereum. iTrustCapital lets users invest in over 25 cryptocurrencies. You can buy altcoins with smaller market caps and more upside potential. Altcoins come with more risk than established cryptocurrencies, but some investors will happily take on more risk for a greater potential payoff. You should do your due diligence before investing your money in any crypto, especially altcoins. iTrustCapital has excellent security measures designed to keep your crypto safe. iTrustCapital also has a lower minimum investment and only a 1% transaction fee. You don’t have to only invest in crypto. iTrustCapital lets you invest in gold and silver, and you can also simply hold USD cash.
Cons of iTrustCapital
iTrustCapital doesn’t let you use existing crypto to fund your account. Instead, you have to invest dollars into iTrustCapital that turn into crypto. If you want to invest your existing crypto into iTrustCapital, you first have to sell it. Selling crypto can trigger significant capital gains taxes if you are sitting on a well-timed investment. iTrustCapital doesn’t have as many years of experience as its competitors. The company got launched in 2019, but it’s served over 150,000 clients and received a $1.3 billion valuation. Despite less experience, management has done an excellent job with the company and made great strides in the crypto IRA industry.
Pros of BlockMint
BlockMint also lets you invest in cryptocurrencies and get tax-free capital gains. The parent company has over two decades of experience and offers more variety with precious metals. BlockMint uses cold storage and other features to safeguard your crypto holdings.
Cons of BlockMint
BlockMint has a steep minimum investment. $20,000 is a considerable investment for many people. BlockMint also has higher transaction fees. BlockMint also charges annual fees for cold storage’s hardware and maintenance requirements. BlockMint currently lets you trade Bitcoin, Ethereum, and Litecoin. This limited pool of cryptos may discourage some investors, but BlockMint remains committed to adding more cryptocurrencies in the future.
How To Get Started with iTrustCapital
You can visit iTrustCapital’s website and click on “Open Account.” After submitting your details and clicking the link in your confirmation email, you can apply for a crypto IRA. You’ll have to fill in important details such as your funding source and beneficiaries. People with approved applications can start investing in crypto and accumulating tax-free capital gains. The past performance of crypto has attracted many investors. Some investors who believe in the continued deployment of blockchain and crypto want to make a long-term investment in the space. These investors would greatly benefit from a solution like iTrustCapital.
How To Get Started with BlockMint
You can visit BlockMint’s site and click “Get Started Now.” The company will guide you to fill in account details and will then send a confirmation email. After creating an account, you can apply for a crypto IRA. Once approved, you’ll make the minimum investment and can start contributing to your crypto IRA.