Why crypto IRAs are a SCAM

I have been looking into crypto IRAs such as choice app and iTrust capital and would like to give you my honest opinion on them. The same issue I have with crypto IRAs is the same issue I have with traditional IRAs. Once you deploy your funds into an IRA, they aren’t really yours anymore. I mean, they say they are yours but can the company you deployed that capital into show POR (proof of reserves)!? The answer is no. You are basically swapping your funds from one custodian in a bank to another custodian in a private company that may or may not be insured or FDIC-approved up to a certain amount. A bank or an IRA are not safe options, and they find ways to exploit customers with hidden fees and maintenance fees. Below I have listed the pros and cons of a crypto IRA, bank, and holding your crypto yourself.

Crypto IRA


  • Nontaxable trading
  • For customers that don’t want to self-custody assets
  • Cold storage and private key options available
  • Some have the option to view your funds on chain to ensure proof of reserves


  • Annual maintenance fees
  • High trading fees
  • Cold storage and private key options are usually multisig
  • Fees to move funds
  • Have to wait until you are 59 ½ years old to take out funds without any penalties
  • Crypto IRAs are private institutions that may or may not be FDIC insured or have insurance policies
  • There is no guarantee that these companies will exist decades from now when you plan to retire
  • Not all IRAs show POR



  • FDIC insured or some form of insurance policy
  • Convenient for many
  • Many different services available 
  • EMI's (electronic money institutions) are really fast with less transactional friction



  • Assets are not in your custody
  • Slow
  • Maintenance fees
  • Transaction fees can be expensive especially cross border payments
  • Low interest rate payments for savings accounts and other services
  • Assets lose value overtime to inflation

Holding Crypto


  • Assets can be in your custody via cold storage 
  • POS (proof of stake) crypto assets pay you yield in the form of equity
  • Assets are transparent and visible on chain in an open source ledger
  • Most networks have low transaction fees
  • Assets  like Bitcoin won’t go bankrupt and have proven to beat the rate of inflation overtime
  • Bitcoin is the most secure network in the world and has never been hacked or had downtime
  • Send assets to anyone around the word with no intermediary
  • Sell assets when you want without a “penalty”
  • Fastest velocity of value transfer 


  • If you lose your private keys, you lose your assets
  • Trading crypto can be a taxable event depending on how you are structured
  • Being your own custodian is a learning curve


Although crypto IRAs are suitable for those who may not want to learn the true power of self custody, I still wouldn’t suggest for anyone to do so. The biggest fear one can have is the lack of full transparency and the anxiety you get not knowing if your funds are 100% safe or if the company will go insolvent before you retire. Investing in yourself and your own retirement and planning for your own future is best. Take the time to understand and invest in courses, communities, and mentors that can help you on your journey. Send us an email for more information and schedule a free consultation.

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