An In-depth Look at iTrust Capital: A Critical Review

iTrustCapital logo on a computer screen

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If you’re exploring options to rejuvenate your retirement portfolio with cryptocurrency and precious metals, iTrust Capital offers a specialized platform for this purpose. But how reliable and user-friendly is it, and what are the costs? This article provides a thoughtful critique of iTrust Capital, dissecting its features, fees, and ease of use to equip you with the knowledge required to make an informed decision. With an eye for detail and a critical perspective, let’s dive into the world of iTrust Capital.

Key Takeaways

  • iTrust Capital offers a tax-advantaged way to include cryptocurrencies and precious metals in retirement portfolios, with features like low fees and a straightforward account setup, but they avoid providing investment, legal, or tax advice.

  • Security at iTrustCapital is robust, offering institutional-grade custody and FDIC insurance on USD funds, with an emphasis on customer security measures such as two-factor authentication, but investors don’t control the private keys to their crypto assets.

  • The platform has a transparent and competitive fee structure, charging no account setup or maintenance fees and a flat 1% trading fee for cryptocurrency transactions, although investing in cryptocurrencies remains inherently risky.

Initial Impressions of iTrust Capital

iTrustCapital logo on a computer screen

At first glance, iTrustCapital presents itself as an enticing platform, primarily targeting individuals interested in diversifying their retirement portfolios with speculative investments like cryptocurrencies and precious metals. The company boasts tax benefits through its tax-advantaged cryptocurrency accounts, which could potentially provide tax-free or tax-deferred gains. But are these claims too good to be true? We’re about to find out.

iTrust Capital offers the following features:

  • iTrust Capital Low fees

  • Excellent customer service

  • Easy account setup

  • High level of customer support

As we explore the software platform further, it will become clear whether these claims are substantiated.

The platform also offers educational resources and market insights to aid users in investment decisions. However, they emphasize that the information is solely for informational purposes and should not be construed as investment advice. This leads us to wonder: how much guidance can one expect from the platform? Let’s discover.

The Unique Selling Points of iTrust Capital

One of iTrustCapital’s unique selling points is its neutral market position. The platform does not affiliate with any specific cryptocurrency, precious metal, or investment strategy. This neutrality could be advantageous for investors who prefer a platform that does not push any particular investment.

iTrust Capital provides IRA trust and custodial services through Fortress Trust LLC. Fortress Trust LLC is a regulated, qualified custodian and a Nevada chartered trust company. Fortress Trust operates as a third-party Qualified Custodian for iTrust Capital, securing client assets in individual retirement accounts. This arrangement might add an extra layer of security for investors.

On the flip side, iTrustCapital offers the following services:

  • It refrains from giving its clients legal, investment, or tax advice.

  • It does not guarantee profits from transactions, including conditional transactions.

  • It does not assume responsibility for any potential tax implications.

This hands-off approach might be a downside for those who seek more guidance in their investment journey, such as working with an investment advisor.

Setting Up Your iTrust Capital Account

Opening an iTrustCapital account seems straightforward. The process involves:

  1. Selecting the type of IRA

  2. Choosing a funding method

  3. Inputting personal information

  4. Submitting the application for review

But what about funding the account?

iTrustCapital offers several options to fund an account, including funding a traditional IRA:

  • Perform an IRA transfer from an existing IRA

  • Roll over an employer plan

  • Make a direct contribution

  • In-kind transfers, enabling wallet-to-wallet transfers of cryptocurrency assets from another IRA without needing to liquidate them to fiat currency first, effectively allowing you to transfer funds seamlessly

However, rolling over an employer plan to iTrustCapital can take 2-4 weeks due to the processing involving physical checks from employers.

Direct contributions to an iTrust Capital IRA, including SEP IRA, can be made in USD up to $6,500 for those under 50 and $7,500 for those 50 or older, with Roth IRA contributions subject to specific income limits. But one drawback is iTrust Capital does not allow funding via credit or debit cards, only bank wire or check. This restriction could be a hurdle for some potential users.

“Navigating the iTrustCapital Platform”

Investors trading on a digital platform

The iTrust Capital platform prioritizes ease of use, making it accessible for both novice and experienced investors. The intuitive layout simplifies the inclusion of digital assets in retirement plans. If users encounter any issues, there’s a detailed guide on the iTrustCapital website to assist them.

The official crypto platform offers the following features:

  • Operational 24/7

  • Allows users to execute real-time trades and immediately see the impact on their account balances

  • Offers a selection of 28 cryptocurrencies, including popular ones like Bitcoin, Ethereum, and Cardano

  • Users can monitor their portfolio balance and performance in real-time via the dashboard, thanks to the platform’s real-time tracking tools.

However, the limitation of iTrust Capital to an iOS app may restrict its accessibility to Android users. The lack of a dedicated Android app means some potential users might miss out on the convenience of managing their investments on the go.

“Security Measures at iTrustCapital”

Security measures in a digital environment

Regarding security, iTrust Capital seems to pull out all the stops. The platform partners with institutional-grade custody providers Curv and Coinbase Custody, ensuring encrypted cryptocurrency keys and secure cold storage with additional insurance for client assets. Digital currencies are stored using third-party institutional storage wallet providers like BitGo and Fireblocks, which offer Multi-Party Computation (MPC) and Offline Cold Storage.

USD funds held by the third-party Qualified Custodian, Fortress Trust, are insured by the FDIC, adding another layer of security for users’ funds. iTrustCapital also offers two-factor authentication for user accounts and conducts regular security and financial audits, retaining SOC 2 Type II certification.

In the unfortunate event of company closure, iTrust Capital and Fortress Trust have a business continuity plan to ensure clients retain ownership and control of their accounts and alternative assets. However, the platform’s reliance on custodial wallets implies that investors lack control over the private keys, posing a risk for those who value personal autonomy over their crypto assets. To mitigate this risk, it’s essential to leverage client assets effectively.

“Assessing iTrustCapital’s Fee Structure”

Transparent fee structure on a chart

iTrust Capital has a transparent fee structure, charging a standard 1% trading fee for cryptocurrency transactions. This fee structure is competitive, especially when compared to other cryptocurrency IRA providers. For instance, Bitcoin IRA charges up to 3.99% in various fees, while iTrustCapital sticks to its flat 1% trading fee.

The affordable fee structure becomes even more appealing when you consider that iTrust Capital does not charge account setup or maintenance fees. This lack of additional fees could make iTrust Capital more appealing to cost-conscious investors.

However, despite its competitive fee structure, one must remember that investing in cryptocurrencies inherently involves risk. As with any investment, potential returns should always be weighed against potential losses.

Investment Safety and Risks with iTrust Capital

While iTrustCapital offers a unique way to invest in cryptocurrencies and precious metals through a crypto IRA, it’s important to remember that these are considered speculative investments with a high risk of loss. The IRS and other regulatory agencies have not endorsed the self-directed purchase and sale of cryptocurrency through crypto IRAs. Additionally, this activity is not backed by the United States government.

Moreover, iTrustCapital has the following limitations:

  • It does not offer the ability to earn interest on crypto assets.

  • There is no demo account, which means investors miss out on potential interest earnings and face real trading risks.

  • The platform uses custodial wallets, which means investors do not control the private keys, presenting a risk for those who prioritize personal control over their crypto assets.

iTrustCapital is best suited for investors comfortable with the high volatility and risks of cryptocurrency investments for long-term holds within a retirement portfolio. Potential investors, though, should be aware of possible regulatory actions, such as SEC charges against crypto platforms and the uncertain consequences if the platform were to shut down.

iTrust Capital: Worth Your Investment?

Diverse investment portfolio with cryptocurrencies and precious metals

So, is iTrust Capital worth your investment? Many clients seem to think so, valuing the capability to trade cryptocurrency within an IRA setup. Users report satisfaction with iTrustCapital due to its ease of use and the unique benefit of combining cryptocurrency investments with retirement savings.

There’s an absence of available information regarding negative feedback or deficiencies directly relating to the investment value or performance of iTrust Capital. Comparing iTrustCapital with other similar investment services, customers appreciate the advantages offered, indicating good value for money, particularly in the context of crypto-based IRAs.

As with any investment, though, it’s paramount to carry out thorough research before deciding if it aligns with your needs. Remember that investing in cryptocurrencies and precious metals carries a certain degree of risk, and it’s important to be prepared for potential losses.

Summary

In conclusion, iTrust Capital offers a unique way to diversify your retirement portfolio with cryptocurrencies and precious metals. The platform stands out for its ease of use, transparent fee structure, and impressive security measures. However, potential investors should be aware of the speculative nature of these investments, the lack of an interest-bearing account, and the use of custodial wallets.

While iTrust Capital provides a promising platform for investing in cryptocurrencies within a retirement setup, it’s not without its potential risks and drawbacks. As always, prospective investors should carefully consider their risk tolerance, investment goals, and financial situation before diving into the world of cryptocurrency investments.

Frequently Asked Questions

Is iTrust Capital trustworthy?

Yes, iTrustCapital is trustworthy and an excellent choice for crypto enthusiasts.

Who is the CEO of iTrust Capital?

The CEO of iTrustCapital is Todd Southwick.

What bank does iTrust Capital use?

iTrustCapital uses a third-party custodian called Fortress Trust, a regulated state-chartered trust company, to custody client assets. Fortress Trust holds client assets in individual retirement accounts solely for the benefit of each client.

Is iTrust Capital available in Hawaii?

No, iTrustCapital is not available in Hawaii. It’s accessible to eligible investors in the United States, with the exception of New York and Hawaii.

What is iTrust Capital?

iTrustCapital is a platform for Crypto IRA retirement, allowing individuals to invest in digital assets for their retirement.

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