Table of Contents
This guide maps iTrustCapital IRA or iTrust Capital IRA in detail. We will start from the very scratch of what an IRA is, what a self directed IRA is and then try and explain iTrustCapital IRA in detail. We will discuss its features, its pros and cons and iTrustCapital IRA reviews. We will unwrap few FAQs and finally write our conclusion. Let us begin.
Also read: 7 Best crypto IRAs in 2022
What is iTrustCapital?
iTrustCapital is a Self Directed IRA (SDIRA) which allows you to invest your IRA retirement funds to high yield financial products like cryptocurrencies (Bitcoin, Ethereum, ADA, Solana, etc.) and precious metals like gold.
But what is a self-directed IRA or IRA for that matter? If you already know these answers you can skip the following sections and jump straight to the section on iTrustCapital IRA Reviews. If otherwise stick with me to unwrap the basics first.
What is an IRA?
Alright, an IRA or Individual Retirement Account is a savings account for your retirement days. The savings in your IRA account also gives you a tax advantage (though there is a limit on the annual investment amount up to which you get these tax benefits).
- It is like a 401(k) account. But, unlike 401(k), you do not need an employer to open your IRA account.
- Anyone (employed, business or freelancer) with earned income can open an IRA account.
- The IRA can be opened at a bank, an investment firm, or a broker.
- The investment in an IRA offers a tax advantage
- An IRA gives you the option to invest in different financial products like stocks, bonds, exchange-traded funds (ETFs), and mutual funds.
What is a Self-Directed IRA?
Self-directed IRAs are a type of IRA, where investors are given a bit more freedom in terms of investment decisions and investment options. Two key takeaways for Self-directed IRAs:
- Self-directed IRAs (SDIRAs) offer alternative investment options than those standard options provided by a regular IRA. Besides the general (yet more safer options) investment options provided by regular IRAs, Self-directed IRAs also give you the option to invest in precious metals, commodities, private placements, limited partnerships, tax lien certificates, real estate, crypto, and other sorts of alternative investments.
- Although SDIRAs are managed by you (you take the investment decisions), they are administered by an IRS-approved custodian.
iTrustCapital IRA Reviews
iTrustCapital offers one of the lowest fees among all the crypto IRAs. Besides you need a mere $1000 to open an account.
iTrustCapital is a trusted and easy to use IRA platform to diversify your retirement funds to cryptocurrencies, gold and silver. It is highly regarded and given high ratings by customers on trusted review platforms like Trustpilot.
- Insurance to your funds: iTrustCapital insures your digital assets via two separate channels. One is a $50 million insurance provided by Munich Re. The other one, which iTrustCapital added to its portfolio in 2021 is of Coinbase Custody which is a custodian of your digital assets up to $370 million.
- The number of cryptocurrencies iTrustCapital Crypto IRA allows investments to: 29 cryptocurrencies including Bitcoin, Ether, Litecoin, Ripple and more.
- Additional assets (besides crypto) available in the IRA for investment: iTrustCapital allows you to diversify your portfolio by investing in Gold, Silver, and other precious metals.
- The minimum amount needed to open an account: iTrustCapital requires you to at least invest $1000 to open an account. Besides a $30 minimum is needed to make any trade.
- Associated Fees: It offers one of the lowest fees among all the crypto IRAs.
Only a 1% fee is charged for cryptocurrency trading
No monthly fees
No broker fees
- Quality of Customer Services: Decent customer support services as is well evidenced in the reviews on TrustPilot and Reddit.
- Whether it allows for converting your existing IRAs to crypto IRA: Yes. You can convert your traditional, Roth, or SEP IRAs to a crypto IRA by paying an additional $75 as fees.
- Ease of setting up the account: Easy
- Security of funds in the IRA: iTrustCapital partners with Coinbase, which offers Coinbase Custody to your digital assets up to $370 million.
- Transfer cryptocurrency directly from another crypto IRA account: You can directly transfer cryptocurrencies from another of your crypto IRA accounts to the iTrustCapital IRA account. Besides you also get free fee trading for 6 months (at the time of writing this guide).
Pros and Cons
iTrust Capital Custodial Services
iTrust Capital or iTrustCapital IRA provides custodial services for the cryptocurrencies you purchased using your IRA funds. What does this mean?
You might know that there is a private key associated with the cryptocurrencies that you buy. The person or entity who has got access to this private key technically has access to your cryptocurrencies.
In a custodial service, your cryptocurrencies are securely stored (hot or cold storage) with a custodian.
iTrustCapital provides custodial services via their third-party institutional custodian-Coinbase. Owing to a lot of paper works needed for any transaction, it is almost impossible to hold your cryptocurrencies in your own non-custodial wallet.
This means that the iTrustCapital IRA securely keeps the private keys of your cryptocurrencies in a custodial wallet managed by Coinbase.
These crypto assets (as confirmed by the iTrustCapital website) are not used for any leverage, investments, borrowing, or lending by iTrustCapital as well as their custody provider-Coinbase.
Technically speaking, iTrustCapital and Coinbase hold your private keys, and hence, they have access to your funds.
This is similar to cryptocurrency exchanges like Binance and Coinbase, holding your cryptos. But iTrustCapital is here to do business. Their track record is clean and they should never steal your funds.
Besides, they are bound legally by contracts to securely store your cryptocurrencies and all your cryptocurrencies are insured.
Coinbase which securely holds your cryptocurrencies in hot and cold storage also has insurance of up to $370 million.
iTrustCapital provides Institutional grade crypto custody.
- Coinbase which is the institutional cold storage provider offers insurance of over $320 million.
- Fireblockcs offers a multi-layer approach to security which eliminates single points of failure.
iTrustCapital account 125m
iTrustCapital crypto IRA raised a $125 million in Series A funding with a post-money valuation of over $1.3 billion, according to a press release provided to CoinDesk. The funds are aimed at expanding the products and services, scale its client services and development teams, launch new marketing channels and explore potential strategic acquisitions.
iTrust Capital Staking
iTrust Capital may allow you to stake Polkadot (DOT) and earn interests up to 9.5% APY.
However, there are multiple and much broader options available for staking your cryptocurrencies. Check this.
What is staking?
As you might already know, staking refers to the phenomenon in which you lock your cryptocurrencies in a blockchain for a fixed period of time (locking period) and in return earn staking interest on your cryptocurrencies.
Your cryptocurrencies remain intact and you potentially earn interest on top of it. Somewhat similar to a bank interest account in which you earn interest on top of the money you save in the bank account.
Polkadot (DOT) Staking in iTrustCapital
iTrustCapital crypto IRA gives you the option to stake Polkadot (DOT). Currently, it needs a minimum of 5 DOT to start staking.
At the end of the staking period, which is 90 days, for now, any rewards earned by iTrustCapital by staking your Polkadot, will be distributed among those who chose the option to stake their Polkadot.
Please note that there is no guarantee of staking rewards. Staking rewards are dependent on several factors including the cryptocurrency’s current prices. The reward shown in the user interface is only indicative.
iTrustCapital charges a staking fee of 20%.
When do you choose the option to stake?
In the Portfolio dashboard, choose the Staking tab. Choose the amount and type of cryptocurrency to be staked. Read carefully all the disclaimers and Terms and Conditions.
Disclaimers to be wary of
- No guarantee of staking rewards. Staking rewards are dependent on several factors including the cryptocurrency’s current prices. The reward shown in the user interface is only indicative.
- You cannot buy or sell the cryptocurrencies you staked until the staking period. The staking period in iTrustCapital is 90 days.
- Staking fee of 20%
- Staking rewards paid in cryptocurrencies only
- Staking period of 90 days
Is iTrustCapital legit?
Headquartered in Irvine, CA, iTrustCapital was founded in 2018 with a mission and vision to disrupt the self-directed IRA industry by enabling investors to buy and sell cryptocurrencies with tax benefits.
iTrustCapital is been in business for over 4 years now (as can be confirmed in their website). It has a good and excellent review in trusted platforms like TrustPilot, Benzinga.
iTrustCapital has a verified status at Trustpilot where it also mentions its Email, phone number and complete address.
Email: [email protected]
Address: 18575 Jamboree Road
It has received 2k plus reviews on Trustpilot which vouch for its authenticity, good customer service and easy to use investment platform.
Besides, iTrustCapital was awarded the best IRA software platform to invest in cryptocurrencies. Check this announcement in their Facebook page.
What is iTrustCapital phone number?
iTrust Capital coins
iTrust Capital currently allows to invest in 29 cryptocurrencies including Bitcoin, Ether, Litecoin, Ripple and more.
iTrustCapital App or Application
iTrustCapital application is available at the Apple Store, where you can download iTrustCapital applications for iPhone and iPad. It enjoys a rating of 3.1 out of 5.
iTrustCapital is a trusted self directed IRA platform which enables you to diversify your IRA funds to cryptocurrencies, gold and silver. It is particularly good for beginner investors by providing an easy to use platform. There are self-explanatory, detailed step-by-step guides to help you open an account and start investing.
iTrustCapital IRA provides a nice and prompt customer service. You can contact the customer support executives via phone (866-308-7878), email ( [email protected]), live chat (option provided in the home screen) and social media accounts on Twitter, Instagram, LinkedIn, Facebook and Telegram.
A minimum of $1000 is needed to open an account and there is a fee of 1% per cryptocurrency trade. Disbursements at the time of retirement can be made either in cash or your preferred cryptocurrency