This guide conducts a 360-degree Prime Trust Crypto IRA review. If you have clicked on this guide, I understand you already know what is an IRA, what is a self-directed IRA, and what is a crypto IRA.
If not please check this guide here, which explains all these concepts.
Crypto IRAs are gaining in popularity. Rather than limiting an IRA account holder to invest only in traditional investment products like stocks, bonds, or other traditional asset classes, crypto IRA allows to invest IRA funds into cryptocurrencies.
Since cryptocurrencies are rapidly gaining traction and going mainstream, it is likely that funds invested now in cryptocurrencies can bring in huge returns when one turns 59 years and 6 months of age.
The worthiness of a crypto IRA like Prime Trust Crypto depends on a few crucial factors like:
- The number of cryptocurrencies the crypto IRA allows investments into
- Additional assets (besides crypto) available in the IRA for investment
- Minimum Account Balance you need to maintain to start your investments
- Fees and charges like set-up fee, maintenance fee, transaction fee
- Quality and promptness of Customer Services
- Ease of setting up the account and the most important
- Security and insurance of funds in the IRA
Let us unwrap all these aspects for Prime Trust Crypto IRA, one by one.
Table of Contents
What is Prime Trust Crypto IRA?
Prime Trust Crypto IRA is a self-directed crypto IRA that allows you to diversify and invest your retirement IRA funds into high-risk and high-return investment products, i.e. cryptocurrencies.
Prime Trust is a leading infrastructure provider for players in the digital asset economy like crypto exchanges, custodians, lending and borrowing, and more.
Prime Trust Crypto IRA review
1)Number of cryptocurrencies and alternate investment options
Prime Trust Crypto IRA mainly supports BTC, ETH, ADA, AVAX, LTC, SOL, as of now.
2)Fees and the minimum amount needed to open an account
Not found in the website.
4)Ease of setting up the account
Prime Trust offers an institutional grade financial API technology for compliance, custody, payment rails, crypto trading and settlement resources. It provides a one stop easy to use and intuitive dashboard for all the different requirements.
5)Security and insurance of funds in the IRA
The storage architecture of the digital assets in the Prime Trust Crypto IRA is supported by MPC Technology.
Cryptocurrency investments are taxable. Cryptocurrencies are treated as an asset or property and a Capital Gains Tax (CGT) is levied on them.
But when you buy and sell cryptocurrencies using a crypto IRA platform like Prime Trust crypto IRA, BitIRA or iTrustCapital or Alto IRA, you get the same tax advantage as you enjoy in your traditional IRA accounts.
This means that the amount of cryptocurrency investments you made in the year using the Prime trust crypto IRA platform will be deducted from your taxable income.
Say your taxable income is $10,000 for the year and you made an investment of $2000 in the Prime trust crypto IRA, buying cryptocurrencies. Then $2000 is deducted from your taxable income of $10,000 to calculate your net taxable income, i.e. $8000.
However, please note there is a set or defined limit on the amount of money you can claim for tax savings in a year in your IRA account.
8)Rollover from traditional IRA accounts
Prime Trust Crypto IRA supports both Traditional IRAs as well as ROTH IRAs. It supports the rollover (transfer without any tax implications) from like their 401k, 403b, Pension, or Thrift Savings Plan.
They can also Transfer In assets from the same account type at a different institution, such as Traditional IRA to Traditional IRA.
9)Intuitive dashboards and educational materials
Prime Trust Crypto IRA provides complete IRA statements and tax reports via API. It provides an institutional grade API for custody, compliance, payment rails, crypto trading and settlement resources.
Prime Trust Crypto IRA- Pros and Cons
Prime Trust which is one of the leaders in providing financial infrastructure to fintech and digital assets companies has launched its crypto IRA, namely Prime Trust crypto IRA. The crypto IRA allows you to diversify by investing your IRA (retirement) funds into cryptocurrencies.
With the printing of US dollars like never before, inflation in the economy is quite imminent. It might lead to a recession. Investors are using cryptocurrencies like Bitcoin, Ether, ADA, etc. as the hedge against the currency.
Cryptocurrencies are treated as an asset or capital and Capital Gains Taxes are levied on them. Crypto IRAs like Prime Trust Crypto IRA provide an option to deter taxes on cryptocurrency investments.
However Prime trust crypto IRA is new to the market. It will be interesting to note its performance in the coming times in various aspects of fees charged, customer services, security offered, ease of setting up and using the account and more.
Nevertheless, Prime Trust has already proved its worth in the digital economy by providing a suite of APIs for compliance, payment rails, liquidity, settlement to fintech and digital asset innovators.