How Crypto IRAs Work (with iTrustCapital as Example)

A Crypto IRA is a retirement account that allows you to invest in digital assets like Bitcoin, Ethereum, and other cryptocurrencies, while still keeping the tax advantages of a traditional IRA. iTrustCapital is one of the most popular platforms that makes this process simple and secure.

1. Open Your IRA Account

With iTrustCapital, you first choose the type of IRA that fits your financial goals:

  • Traditional IRA – Contributions may be tax-deductible; withdrawals are taxed in retirement.
  • Roth IRA – Contributions are after-tax; withdrawals are tax-free after retirement.
  • SEP IRA – Designed for self-employed individuals, offering higher contribution limits.

2. Fund Your Account

You can add money to your IRA in two ways:

  1. Rollover – Transfer funds from an existing IRA or 401(k) without triggering taxes.
  2. New Contributions – Deposit cash up to IRS limits ($6,500 per year under 50; $7,500 if 50+ in 2026).

iTrustCapital guides users through rollovers step by step to make the process easy and compliant.

3. Buy and Sell Crypto

Once your IRA is funded, you can trade cryptocurrencies and precious metals directly inside the account:

  • Crypto assets – Bitcoin, Ethereum, and other popular coins.
  • Precious metals – Gold and silver can also be held in the IRA.
  • Recurring purchases – Automate investments to reduce the effects of market volatility.

All trades are executed inside the IRA, meaning gains grow tax-deferred or tax-free, depending on your IRA type.

4. Secure Custody of Assets

iTrustCapital uses institutional-grade custodians to hold your crypto and metals, so your assets are protected and compliant with IRS rules:

  • Cold storage keeps crypto offline and secure.
  • Multi-factor authentication (2FA) protects your account.
  • Professional custody services like Coinbase Custody ensure safety and reliability.

5. Benefits of a Crypto IRA with iTrustCapital

  • Tax Advantages – Grow crypto or metals without paying taxes on gains until withdrawal (Traditional) or not at all (Roth).
  • Portfolio Diversification – Add crypto and precious metals alongside traditional investments.
  • Beginner-Friendly Platform – Easy interface for buying, selling, and tracking assets.

6. Keep in Mind

  • Volatility – Cryptocurrency prices can swing widely; this is a long-term investment.
  • Contribution Limits – Stay within IRS annual limits to avoid penalties.
  • Long-Term Horizon – Crypto IRAs are best for retirement planning, not day trading.

💡 Quick Example:
Invest $5,000 in Bitcoin through a Roth Crypto IRA on iTrustCapital. If the value grows over 10 years, all gains can be withdrawn tax-free, assuming IRS rules are followed.