iTrustCapital vs BitcoinIRA
Crypto IRAs like iTrustCapital and Bitcoin IRA offer tax-free or tax-deferred options to invest in crypto for retirement. But which is right for you?
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There's no guarantee what crypto will be doing next year, let alone in 20 or 30. However, interest in crypto as a retirement investment has seen a big uptick.
Bitcoin IRA and iTrustCapital are two crypto IRAs at the forefront of that trend.
In this in-depth review, see how iTrustCapital and Bitcoin IRA compare in security, fees, and other important factors.
What are Bitcoin IRA and iTrustCapital?
iTrustCapital was founded by CEO Morgan Steckler in 2018, and is headquartered in Irvine, California. It aims to provide an avenue for investors to keep cryptocurrency in their retirement accounts.
Retirement investing provides tax advantages—either through tax-deferred or tax-free accounts. iTrustCapital lets users to trade crypto and precious metals real-time while benefitting from the special allowances given to retirement accounts.
iTrustCapital is IRS and SEC-compliant, and they have positive user reviews on Trustpilot, the Business Consumer Alliance, and Facebook.
Bitcoin IRA is one of the leading names in crypto IRAs. They were founded in Los Angeles in 2016 and were the first to offer crypto IRAs. Despite the name, Bitcoin IRA doesn't just offer Bitcoin.
Users can invest in a range of cryptocurrencies to fund their retirement accounts. It's easy to open an account in just a few minutes.
Their trading platform is accessible 24/7 to new or experienced traders, available through the web or their mobile app, and can begin within 3-5 days of account funding.
They also offer a Bitcoin 401(k) in addition to their Bitcoin IRAs. Users can supplement their crypto accounts with investments in gold.
What Cryptocurrencies Do They Support?
What you're able to trade can be heavily impacted by the platform you choose. In the case of iTrustCapital and Bitcoin IRA, iTrustCapital has a far greater range of coins to trade.
iTrustCapital offers the following, with more promised:[1]
- Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Stellar, Polkadot, Chainlink, Cardano, Uniswap, Sushi, Compound, Yearn Finance, Polygon, EOS, Dogecoin, Aave, Solana, Curve DAO, Basic Attention Token, Enjin Coin, Algorand, Cosmos, Tezos
- Users can also invest in gold and silver
Bitcoin IRA offers the following:[2]
- 60+ cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Zcash, Stellar Lumens, Cardano, Dogecoin, and more.
- Users can also invest in digital gold
Where are They Available?
iTrustCapital is only available to U.S. citizens.
Bitcoin IRA is only available to U.S. citizens.
Trading
Each platform offers a variety of different services for investors and crypto enthusiasts. Let's take a look at their exchanges and other features to see how they compare.
iTrustCapital operates a relatively limited exchange that supports around 29 of the most widely traded crypto coins, with more added periodically. They have a quite high minimum investment and strict trading requirements:
- Minimum Investment: $1,000 minimum to begin, with minimum $500 additional contributions.[3]
- Trade Minimum: $30[4]
They charge a flat 1% on trades.[5]
iTrustCapital users can also trade gold and silver.
Bitcoin IRA offers more cryptocurrencies than iTrustCapital. Their minimum investment is higher than iTrustCapital's, unless you take advantage of their Saver IRA, which allows you to set up regular $100 investments through a linked bank account.
Minimum Investment: $3,000,[6] or $100 a month through their Saver IRA via linked bank account
There is a one-time set-up fee that's 0.99% to 2.99% of your investment amount, and then a 0.08% monthly fee. The trading fee is 2%.
You can't buy your cryptocurrency on other exchanges or custodians and transfer it. Nor can you transfer in coins you already own. It all must be purchased through Bitcoin IRA due to rules set by the IRS.
Bitcoin IRA users can trade digital gold.
Other Features
iTrustCapital does not offer many features not related to its main purpose of helping users open and manage crypto IRAs. They offer the following services:
- IRA setup
- Help funding IRA via transfer, rollover, or contribution
- IRS/tax reporting
- Unlimited storage with institutional custody partners
- iTrustCapital platform support and maintenance
iTrustCapital does not have any financial advisors on staff.
Bitcoin IRA
- IRA setup
- Support services for rollover of retirement funds (IRA, Roth IRA, SEP IRA, SIMPLE IRA, 403(b), or 401(k))
- Help setting up self-directed retirement account with BitGo Trust
Fees to Look Out For
iTrustCapital charges a simple set of fees:
- 1% per transaction on crypto trades
- $50 over spot (market price) on gold
- $2.50 over spot on silver
- $0 monthly fee
- $1,000 account minimum
Bitcoin IRA
Bitcoin IRA's fees are:
- 0.99% to 2.99% (based on account size) set-up fee
- 2% trading fee
- 0.08% monthly fee
- $3,000 account minimum
Fees are the same for crypto and gold.
With Bitcoin IRA's set-up fee and much higher purchase fee, it will prove more costly to traders than iTrustCapital.
Security
Both platforms take extreme care in managing the safety of your coins. Let's take a look at some of their security features.
iTrustCapital[8]
- Digital assets are secured by Coinbase Custody
- Two-Factor Authentication (2FA) powered by Authy
- Gold and silver are held at the Royal Canadian Mint and traded on VaultChain, a secure blockchain distributed ledger
- Insurance:
- $50 million insurance policy from Munich Re
- Total insurance up to $370 million including policy with Coinbase Custody and Curv
- $50 million insurance policy from Munich Re
- Insurance: Digital assets are insured by BitGo Trust for up to $700 million
- Cold Storage: Coins are stored safely offline
- Encryption: 256-bit SSL Encryption
- Gold is insured at Brink's bullion vault facility as well as in transit
Bottom Line
Both iTrustCapital and Bitcoin IRA are popular choices for crypto-focused retirement investing.
Overall, while Bitcoin IRA is a perfectly reasonable platform to choose, iTrustCapital has more to offer investors.
You can invest in both silver and gold, they have a lower minimum investment, and their purchase fee is 1% compared to the 2% charged at Bitcoin IRA.
Bitcoin IRA also charges other fees that iTrustCapital doesn't, including an undisclosed fee on initial investments.
References
- ^ "Cryptocurrency": iTrustCapital, 2021.
- ^ Bitcoin IRA Crytocurrencies, Retreived 2/8/22
- ^ iTrust Capital, Inc. What is the minimum account balance in order to start an IRA with iTrustCapital?, Retrieved 6/14/2022
- ^ iTrust Capital, Inc. Is there a minimum or maximum per transaction?, Retrieved 6/14/2022
- ^ iTrust Capital, Inc. Fees, Retrieved 6/14/2022
- ^ Bitcoin IRA. Are there minimums and investment caps?, Retrieved 6/14/2022
- ^ Internal Revenue Service. IRA FAQs - Distributions (Withdrawals), Retrieved 6/14/2022
- ^ "Security": iTrustCapital, 2021.
- ^ "How it Works": Bitcoin IRA, 2021.
- ^ "BitGo's $700 million crypto custody insurance program": The Block, 2021.
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Jeremy Harshman is a creative assistant at CreditDonkey, a crypto comparison and reviews website. Write to Jeremy Harshman at jeremy.harshman@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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