Crypto IRA Explained: Is Fidelity Crypto & iTrustCapital Worth It?

 

• Ever wondered how to invest in crypto for retirement without the tax headache?
• Discover how a crypto IRA can grow your wealth tax-free or tax-deferred!
• Curious if Fidelity Crypto or iTrustCapital is the right choice for your future?

Introduction

Imagine securing your retirement with the explosive potential of crypto—without the usual tax sting. A crypto IRA lets you invest in digital assets like Bitcoin and Ethereum within a retirement account, offering tax advantages that could supercharge your savings. In this article, we’ll break down what a crypto IRA is, explore top providers like Fidelity Crypto and iTrustCapital, and help you decide if they’re worth your investment. Get ready to unlock the secrets of crypto retirement planning!

What Is a Crypto IRA and Why Should You Care?

A crypto IRA is a self-directed individual retirement account that allows you to hold cryptocurrencies like Bitcoin, Ethereum, and Litecoin. Unlike traditional IRAs limited to stocks and bonds, a crypto IRA opens the door to digital assets, offering potential tax benefits. With the crypto market’s volatility and growth, these accounts are gaining traction among forward-thinking investors.

How Does a Crypto IRA Work?

A crypto IRA operates like a standard IRA but requires a custodian to manage your digital assets. You can choose a Roth, Traditional, or Rollover IRA, each with unique tax implications. Contributions are made through a linked brokerage account, and crypto is held in secure digital wallets, often in cold storage for safety.

Why Consider a Crypto IRA?

• Tax Advantages: Roth crypto IRAs offer tax-free growth, while Traditional IRAs provide tax-deferred gains.
• Diversification: Adding crypto to your portfolio can reduce reliance on traditional assets.
• Growth Potential: Crypto has shown significant returns, with Bitcoin’s value rising over 300% in the past five years.
  However, crypto’s volatility means it’s best suited for those with a high risk tolerance.

Fidelity Crypto: A Trusted Name in Crypto IRAs

Fidelity Crypto, offered by Fidelity Digital Assets, is a heavyweight in the crypto IRA space. Launched in April 2025, it allows investors to trade Bitcoin, Ethereum, and Litecoin in Roth, Traditional, or Rollover IRAs. With no account opening or maintenance fees, it’s an accessible entry point for crypto enthusiasts.

Key Features of Fidelity Crypto

• No Minimum Investment: Start with as little as $1, making it beginner-friendly.
• Secure Storage: Assets are held in cold storage, minimizing hacking risks.
• Trusted Custodian: Fidelity’s reputation, built since 2018, ensures reliability.
• 1% Spread Fee: A 1% fee applies to buy and sell transactions, competitive but not the lowest.

Pros and Cons of Fidelity Crypto

Pros:

• No setup or maintenance fees.
• Backed by Fidelity’s institutional-grade security.
• Simple account setup with a linked brokerage IRA.
  Cons:
• Limited to three cryptocurrencies: Bitcoin, Ethereum, and Litecoin.
• 1% spread fee can add up for frequent traders.
• Not available in states like California and Oregon.

Fidelity Crypto is ideal for investors who value security and trust a well-known brand but may fall short for those seeking a broader crypto selection.

iTrustCapital: The Crypto IRA Leader with Variety

iTrustCapital is a top choice for crypto IRA investors, boasting over 80 cryptocurrencies and precious metals like gold and silver. Founded in 2018, it’s known for low fees, robust security, and a user-friendly platform, making it a favorite for diversified retirement portfolios.

What Makes iTrustCapital Stand Out?

• Wide Asset Selection: Trade over 80 crypto assets, including Solana, XRP, and Dogecoin.
• Low Fees: A flat 1% transaction fee and no monthly maintenance costs.
• Precious Metals Option: Combine crypto with gold and silver for added diversification.
• Institutional Custody: Partners with Coinbase Custody, Fireblocks, and Fidelity Digital Assets for top-tier security.

Pros and Cons of iTrustCapital

Pros:

• Extensive crypto selection, far beyond Bitcoin and Ethereum.
• Competitive 1% transaction fee with no setup or storage fees.
• 24/7 trading platform with real-time order execution.
  Cons:
• $1,000 minimum deposit, higher than Fidelity Crypto.
• Limited to U.S. investors only.
• No phone trading support, which may frustrate some users.

iTrustCapital shines for investors who want variety and flexibility in their crypto IRA, especially those interested in altcoins or precious metals.

Comparing Fidelity Crypto and iTrustCapital

Choosing between Fidelity Crypto and iTrustCapital depends on your investment goals. Here’s a detailed comparison to help you decide which crypto IRA provider suits you best.

Asset Selection

Fidelity Crypto offers only Bitcoin, Ethereum, and Litecoin, catering to investors focused on major cryptocurrencies. In contrast, iTrustCapital provides over 80 crypto options, including altcoins like Solana and meme coins like Dogecoin, plus precious metals. If diversification is your goal, iTrustCapital is the clear winner.

Fees and Costs

Both platforms avoid setup and maintenance fees, but Fidelity Crypto charges a 1% spread fee per transaction, while iTrustCapital charges a flat 1% transaction fee. For precious metals, iTrustCapital adds a $2.50 per ounce fee, which can be competitive depending on order size. For cost-conscious investors, iTrustCapital may edge out slightly due to its transparent fee structure.

Security and Custody

Fidelity Crypto uses in-house cold storage through Fidelity Digital Assets, a trusted name since 2018. iTrustCapital partners with third-party custodians like Coinbase Custody and Fidelity Digital Assets, offering institutional-grade security. Both are highly secure, but Fidelity Crypto’s in-house approach may appeal to those who prefer a single provider.

Accessibility and Minimums

Fidelity Crypto has no minimum investment, making it ideal for beginners, while iTrustCapital requires a $1,000 minimum deposit. Fidelity Crypto also requires a linked brokerage IRA, which adds a step but simplifies funding for existing Fidelity customers. iTrustCapital’s straightforward setup is better for those starting fresh.

User Experience

iTrustCapital is praised for its intuitive 24/7 trading platform and excellent customer service, with over 5,000 positive reviews. Fidelity Crypto offers a streamlined experience but lacks the extensive crypto options and customer support responsiveness of iTrustCapital. For ease of use, iTrustCapital often takes the lead.

Reviews and Comparisons

Both Fidelity Crypto and iTrustCapital have garnered strong reputations, but user feedback highlights key differences. Fidelity Crypto is lauded for its seamless integration with existing Fidelity accounts and robust security, with users appreciating the no-fee structure and trusted brand. However, some reviews note its limited crypto selection as a drawback, especially for altcoin enthusiasts. iTrustCapital earns high praise for its vast asset selection and responsive customer service, with over 5,000 reviews highlighting its ease of use and low fees. Some users, however, mention the $1,000 minimum as a barrier for smaller investors. Compared to competitors like Coin IRA (1.25% buy fee, 1% sell fee) or Bitcoin IRA (2% transaction fee), iTrustCapital often comes out ahead for cost and variety, while Fidelity Crypto appeals to those prioritizing brand trust and simplicity.

How to Get Started with a Crypto IRA

Ready to dive into a crypto IRA? Here’s a step-by-step guide to set up your account with Fidelity Crypto or iTrustCapital and start investing in crypto for your retirement.

Step 1: Choose Your Provider

• Fidelity Crypto: Ideal for beginners or those with existing Fidelity accounts. Requires a linked brokerage IRA.
• iTrustCapital: Best for those seeking diverse crypto and precious metals options. Needs a $1,000 minimum deposit.

Step 2: Select Your IRA Type

• Roth IRA: Tax-free growth, ideal for younger investors expecting higher future taxes.
• Traditional IRA: Tax-deferred growth, suited for those in higher tax brackets now.
• Rollover IRA: Transfer funds from an existing 401(k) or IRA for tax-deferred growth.

Step 3: Fund Your Account

• For Fidelity Crypto, transfer funds from a linked brokerage IRA. No minimum is required.
• For iTrustCapital, deposit at least $1,000 via ACH, IRA transfer, or 401(k) rollover.

Step 4: Start Trading

Use the provider’s platform to buy and sell crypto. Fidelity Crypto offers market or limit orders for Bitcoin, Ethereum, and Litecoin. iTrustCapital allows 24/7 trading across over 80 assets. Always review fees before trading.

Tips for Success

• Limit Risk: Invest only what you can afford to lose due to crypto’s volatility.
• Monitor Performance: Regularly check your portfolio to adjust allocations.
• Understand Taxes: Consult a tax professional to navigate IRA withdrawal rules.

Is a Crypto IRA Right for You?

A crypto IRA can be a game-changer, but it’s not for everyone. Consider your risk tolerance, investment goals, and timeline. If you believe in crypto’s long-term potential and want tax advantages, Fidelity Crypto or iTrustCapital could be worth exploring. However, crypto’s volatility means you should only invest what you’re comfortable losing. Always research providers and consult a financial advisor before diving in.

Conclusion

A crypto IRA offers a tax-advantaged way to invest in cryptocurrencies, with Fidelity Crypto and iTrustCapital leading the pack. Fidelity Crypto is perfect for those seeking simplicity and a trusted name, while iTrustCapital excels for investors wanting diverse crypto and precious metals options. Both platforms provide secure, low-cost solutions, but your choice depends on your priorities—brand trust or asset variety. Ready to take control of your retirement? Share your thoughts in the comments, explore these platforms, or pass this guide to a friend!

FAQ

Q1: What is a crypto IRA?
A1: A crypto IRA is a self-directed IRA that allows you to invest in cryptocurrencies like Bitcoin and Ethereum, offering tax-deferred or tax-free growth depending on the IRA type.

Q2: Is Fidelity Crypto safe for a crypto IRA?
A2: Yes, Fidelity Crypto uses cold storage and institutional-grade security through Fidelity Digital Assets, making it a secure option for crypto IRA investors.

Q3: Why choose iTrustCapital over other crypto IRA providers?
A3: iTrustCapital offers over 80 cryptocurrencies, low 1% transaction fees, and precious metals, making it ideal for investors seeking variety and cost efficiency.