iTrustCapital Review: Low-Cost Crypto IRAs

iTrustCapital has some of the lowest fees of any cryptocurrency IRA. If you're looking for a tax-leveraged cryptocurrency account with good customer service, iTrustCapital is worth a look. Find out whether it might be right for you in our in-depth iTrustCapital review.

This cryptocurrency IRA broker is a good fit for: People who wants to add cryptocurrencies to their retirement portfolio.

Top perks

Tax-advantaged cryptocurrency accounts

iTrustCapital makes it easy to put cryptocurrency into an IRA. Its user-friendly system lets you buy and sell cryptocurrencies, gold, and silver. You can use a self-directed IRA to put some of your retirement savings into cryptocurrency. Choose between a Roth IRA, a traditional IRA, and a SEP IRA for either tax-free or tax-deferred gains on your crypto investments.

Customer service

iTrustCapital has good reviews on Trustpilot and forums like Reddit. Customers praise the smooth and easy account setup, as well as the high level of customer service. You can schedule a call with a representative or message them online.

In-kind transfers

If you already hold crypto in a different IRA, you don't have to convert it into a fiat (traditional) currency before you transfer it to your new iTrustCapital account. Plus, you'll get six month's fee-free trading if you do. When you retire and take distributions, you can also take them in-kind, which is ideal if you are holding for the long term and don't want to sell.

You can't make in-kind crypto transfers to your IRA from a wallet or cryptocurrency exchange account, however. IRS rules don't allow you to transfer these directly into your IRA.

What could be improved

Available cryptocurrencies

You can only buy 28 cryptocurrencies with iTrustCapital, although it says more will come soon. It does offer all the most popular digital currencies, including Bitcoin, Ethereum, and Cardano. However, cryptocurrency exchanges have much bigger selections, so if you want to invest in a broad selection of coins, you may need to look elsewhere.

Fees and account minimums

iTrustCapital compares well with other cryptocurrency IRAs when it comes to account minimums and fees. It has some of the lowest crypto IRA fees around.

However, if you look at it alongside ordinary brokerages and crypto exchanges, it's less appealing. Many top IRA accounts offer commission-free trading with no account minimums -- though you can't buy crypto. And several cryptocurrency exchanges charge less per transaction, have no account minimums, and don't charge monthly fees.

No interest-bearing account

Some cryptocurrency accounts, including other crypto IRAs, let you earn interest on your crypto assets. This means you benefit from any appreciation in value as well as interest payments. It's a bit like dividend-paying stocks. iTrustCapital does not pay interest on your cryptocurrencies, which is something else to factor into your decision.

Custodial wallet: You don't control the keys

Old-school crypto investors who've experienced large-scale crypto exchange hacks, failures, and scams firmly believe that you need to control the keys to your crypto. What does that mean? When you buy cryptocurrency, there's a private key associated with it -- a bit like your signature.

You need that key if you want to buy, sell, or trade your coins. If your cryptocurrencies are held in a custodial wallet, somebody else controls those keys. It's a bit like allowing your bank manager to sign checks for you.

However, the paperwork involved would make it almost impossible to maintain a self-directed IRA in your own non-custodial account. iTrustCapital keeps your funds in a custodial wallet and does the paperwork for you. Unless you're a tax whiz, if you want the tax advantages of a self-directed IRA, you need to keep your cryptocurrencies with the crypto IRA where you bought them. Plus, these days, crypto exchanges are a lot more secure than they used to be.

iTrustCapital will help you set up a self-directed IRA (SIDRA), which is the only way to put cryptocurrency into an IRA account. You can buy cryptocurrencies, gold, and silver through iTrustCapital. You'll need to decide whether your SIDRA should be a Roth or traditional IRA.

• Roth IRA: You fund a Roth IRA with post-tax dollars, and then your future withdrawals are tax free.
• Traditional, simple, or SEP IRA: These are tax-deferred accounts. You fund them with pre-tax dollars and pay tax on the money you withdraw.

As with any IRA, there are limits on how much you can invest each year and you'll pay a penalty if you withdraw funds early. It's also worth bearing in mind that you can have more than one IRA. Cryptocurrencies are highly volatile investment vehicles, so it isn't a great idea to put all the money you may need in retirement into crypto. However, if you want to diversify some of your retirement investments into cryptocurrency, iTrustCapital is a good option.

It's easy to set up an iTrustCapital account. You can transfer funds from an existing IRA, roll over an employer plan (such as a 401k), or contribute new funds.

It can take up to four weeks to roll over an employer plan, whereas direct contributions can be processed in a couple of days. You can't use a credit or debit card to pay money into your account, it has to be done by bank wire or a check.

You'll also need to give iTrustCapital information about your beneficiaries. This is another benefit to opening an iTrustCapital IRA. In the event of your death, the company will ensure your beneficiaries can access your assets without complications.

iTrustCapital's fee structure is very straightforward and lower than other cryptocurrency IRA accounts. Here is a rundown of the common fees and minimums accountholders would expect.

iTrustCapital has 28 cryptocurrencies and promises to offer two more very soon. You'll find the most popular digital coins like Bitcoin and Ethereum, but this is not a cryptocurrency exchange where you can trade a wide range of coins.

Security is a big concern for cryptocurrency investors, especially when we're talking about your retirement savings. And even more so when you have to leave your assets in a custodial wallet that's controlled by the exchange.

iTrustCapital has partnered with a company called Curv to secure its customers' assets. Curv boasts institutional-grade software that encrypts your cryptocurrency keys. It means neither a hacker nor iTrustCapital can easily access the keys to your coins. Curv has an insurance deal with Munich Re against exchange hacks.

Another partnership with Coinbase Custody means assets can be stored in cold storage and provides additional insurance against theft. Any funds stored that you keep in U.S. dollars are FDIC-insured. In addition, you'll find the personal account protections you'd expect, such as two-factor authentications.

One note of caution. iTrustCapital's website doesn't give information about what would happen if the company has to close down.

That's not unusual for cryptocurrency exchanges -- but it is worth being aware that you don't have the same protections as you would with traditional retirement accounts.

• You want to put cryptocurrency or gold into your retirement portfolio.
• You want to hold crypto long term and aren't looking for a wide range of coins.

You're comfortable with the volatility and risks involved in cryptocurrency investments.