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Fidelity Crypto Explained: The Ultimate Beginner’s Guide to Buy, Trade, and Invest Securely

1 week ago

684 7 minutes read

Cryptocurrency has transitioned from a niche interest to a mainstream investment option. Fidelity Investments, a renowned name in the financial industry, has embraced this shift by introducing Fidelity Crypto®. This platform allows investors to engage with digital assets directly through their existing Fidelity accounts, ensuring a seamless and secure experience.

With the rise in demand for digital assets, Fidelity Crypto® provides a trusted avenue for both novice and experienced investors to explore the world of cryptocurrencies. Its integration within Fidelity’s robust infrastructure ensures that users have access to comprehensive tools and resources to make informed decisions.

What Is Fidelity Crypto®?

Fidelity Crypto® is a service offered by Fidelity Investments that enables individual investors to buy, sell, and hold cryptocurrencies directly through the Fidelity platform. Currently, the platform supports major digital assets like Bitcoin (BTC) and Ethereum (ETH), with plans to expand its offerings in the future.

The platform is designed to provide a secure and straightforward experience for users. By leveraging Fidelity’s existing infrastructure, investors can manage their crypto holdings alongside their traditional investments, ensuring a holistic view of their portfolio.

How to Open a Fidelity Crypto® Account

Opening a Fidelity Crypto® account is a straightforward process:

Sign Up or Log In: Visit Fidelity’s official website and either sign up for a new account or log in to your existing one.
Access Fidelity Crypto®: Navigate to the ‘Crypto’ section on the dashboard.
Complete the Application: Fill out the necessary information, including personal details and financial background.
Agree to Terms: Review and accept the terms and conditions associated with crypto trading.
Fund Your Account: Transfer funds into your Fidelity account to start trading.

Once these steps are completed, you’ll have access to Fidelity Crypto®, allowing you to buy and sell supported cryptocurrencies directly.

Supported Cryptocurrencies and Trading Options

As of now, Fidelity Crypto® supports trading for Bitcoin (BTC) and Ethereum (ETH). These two cryptocurrencies are among the most established and widely recognized in the market.

Fidelity is committed to expanding its crypto offerings, with plans to introduce additional digital assets in the future. This expansion will provide investors with more opportunities to diversify their crypto portfolios within the Fidelity ecosystem.

Fees and Costs of Trading Crypto on Fidelity

Fidelity Crypto® offers commission-free trading for cryptocurrencies. However, it’s essential to note that a spread of up to 1% is applied to each trade.

This spread represents the difference between the buy and sell prices and is a standard practice in the industry. Compared to other platforms, Fidelity’s fee structure is competitive, ensuring that investors can trade with minimal costs.

Fidelity Crypto® Security and Custody

Security is a top priority for Fidelity Crypto®. The platform leverages Fidelity Digital Assets® to provide institutional-grade custody solutions.

Key security features include:

Cold Storage: The majority of digital assets are stored offline, reducing exposure to potential online threats.
Multi-Factor Authentication: Users are required to verify their identity through multiple methods, adding an extra layer of security.
24/7 Monitoring: Continuous monitoring ensures that any suspicious activities are promptly detected and addressed.

These measures ensure that investors’ assets are protected against potential threats.

Fidelity Crypto® for Retirement Accounts

Fidelity offers the option to include cryptocurrencies in retirement accounts through the Fidelity Crypto® IRA. This allows investors to diversify their retirement portfolios by adding digital assets.

Key features of the Fidelity Crypto® IRA include:

No Account Fees: There are no fees to open or maintain the account.
Tax Advantages: Depending on the type of IRA, investors can benefit from tax-deferred or tax-free growth.
Secure Custody: Assets are held securely through Fidelity Digital Assets®.

This offering provides a unique opportunity for investors to integrate cryptocurrencies into their long-term financial planning.

Fidelity Crypto® vs. Other Platforms

When comparing Fidelity Crypto® to other platforms, several distinctions emerge:

Integration with Traditional Investments: Fidelity allows users to manage crypto and traditional assets within a single platform.
Competitive Fees: With a spread of up to 1% and no additional commissions, Fidelity offers a cost-effective trading environment.
Security Measures: Institutional-grade security protocols ensure the safety of users’ assets.

While other platforms may offer a broader range of cryptocurrencies, Fidelity’s emphasis on security, integration, and competitive fees makes it a compelling choice for many investors.

Fidelity Crypto® Education and Support

Fidelity places a strong emphasis on educating its users about cryptocurrencies. The platform offers a range of resources, including:

Educational Articles: Detailed guides on various aspects of crypto investing.
Webinars and Videos: Interactive sessions led by experts to provide insights into the crypto market.
24/7 Customer Support: Dedicated support teams are available around the clock to assist with any queries.

How to Buy Crypto with Fidelity

Buying crypto with Fidelity is simple and secure, especially for those who already have a Fidelity brokerage account.

Here’s how you can buy crypto through Fidelity in a few easy steps:

Log into your Fidelity account and navigate to the Fidelity Crypto section.
Choose which cryptocurrency you want to purchase—Bitcoin or Ethereum.
Enter the amount you’d like to invest (you can start with as little as $1).
Review the trade details and confirm your purchase.

One of the best parts of using Fidelity for crypto is that you don’t need a separate wallet or platform. Your fidelity crypto account integrates directly into your Fidelity dashboard, making it extremely user-friendly. This is especially appealing for long-term investors who prefer managing all their assets in one place.

Also, Fidelity does not charge trading commissions for crypto transactions, which is a major plus. Just keep in mind, a 1% spread is applied on each trade to cover costs.

How to Trade Crypto on Fidelity

Trading crypto on Fidelity is designed to be smooth—even for beginners.

Once your Fidelity Crypto account is active and funded, you can access real-time price charts, place market orders, and track your crypto assets alongside your stocks, ETFs, mutual funds, and retirement plans.

Here’s what makes Fidelity crypto trading stand out:

No external wallet required – Your assets are custodied through Fidelity Digital Assets®.
Institutional-grade execution – Fidelity uses smart order routing to give you the best available pricing.
Integrated portfolio management – You can track your performance, tax documents, and historical trades all within the Fidelity platform.

For active traders or long-term HODLers, this setup makes it easy to trade crypto on Fidelity without switching between multiple apps or wallets.

Fidelity Crypto App and User Experience

The Fidelity Investments app offers full functionality for crypto users. With it, you can:

Monitor prices and performance
Buy crypto on Fidelity instantly
Review your order history
Access educational resources

The mobile interface is clean, beginner-friendly, and backed by the same user experience team that powers Fidelity’s award-winning investment platform.

Whether you’re using a desktop or the mobile app, crypto on Fidelity is accessible, intuitive, and fully integrated into your investment journey.

Who Should Use Fidelity for Crypto?

Fidelity Crypto is ideal for:

Long-term investors looking to hold crypto in a secure, well-regulated environment
Beginners who want a simplified way to start with Bitcoin or Ethereum
Existing Fidelity clients who want to manage crypto alongside their retirement, stock, and mutual fund investments
Security-conscious investors seeking custody solutions backed by one of the biggest financial firms in the world

If you’re a trader who needs high-frequency or altcoin trading across dozens of tokens, Fidelity might not (yet) be the right fit. But if you want a regulated, reputable place to buy crypto with Fidelity, it’s one of the most reliable platforms available in the U.S.

Fidelity Crypto Traders: What to Expect

Fidelity crypto traders benefit from:

A simplified interface that removes the confusion often seen on other exchanges
Secure custody of digital assets with cold storage and institutional controls
Insightful research and tools to make better investment decisions

Unlike many traditional crypto exchanges that focus on day-trading and leverage, Fidelity for crypto is designed with the long-term investor in mind. That means fewer distractions, more education, and a strong emphasis on safety.

If you’re serious about diversifying your portfolio and value trust, buying crypto through Fidelity offers a balanced and professional experience.

Pros and Cons of Fidelity Crypto

✅ Pros

Regulated U.S. broker with a decades-long reputation
Zero trading commissions
Integrated dashboard for stocks, crypto, retirement, and more
Secure digital asset custody via Fidelity Digital Assets
No need for third-party wallets
Robust educational resources for new crypto investors

❌ Cons

Only two crypto assets supported (Bitcoin & Ethereum)
Limited advanced trading tools compared to crypto-native exchanges
No support for staking or DeFi-related activities
No crypto-to-crypto swaps (BTC to ETH, for example)

Is Fidelity Safe for Crypto?

Absolutely. One of the biggest concerns for anyone entering the crypto space is safety. With Fidelity, you’re working with a company that has managed trillions in assets over the years.

Here’s how Fidelity ensures your crypto is protected:

Cold storage for the majority of funds
Multi-signature wallet technology
Internal auditing and compliance with U.S. regulations
Fidelity Digital Assets, a subsidiary focused exclusively on crypto custody

While no platform is entirely risk-free, crypto in Fidelity is as secure as it gets for retail investors seeking peace of mind.

Fidelity Crypto Tax Reporting

One big bonus of using Fidelity for crypto is their built-in tax reporting tools.

At the end of the year, Fidelity provides:

1099-B forms for capital gains/losses
Historical trade data
Portfolio summaries

This makes it easier for U.S. investors to stay compliant with the IRS and avoid surprises during tax season. Few crypto-native exchanges offer the same level of detailed reporting.

Future of Crypto on Fidelity

Fidelity has always been forward-thinking. They were one of the first traditional asset managers to research blockchain technology and enter the crypto space in 2018 through Fidelity Digital Assets.

As more institutional and retail investors turn toward crypto, Fidelity is expected to:

Expand the number of supported cryptocurrencies
Introduce staking capabilities
Offer new crypto investment products like ETFs or mutual funds
Deepen integration of crypto with retirement accounts

If you’re planning to invest in crypto for the long haul, it’s clear that Fidelity crypto trading will remain at the forefront of this financial evolution.

Final Thoughts

Fidelity Crypto is the perfect entry point for investors who value security, simplicity, and institutional trust. Whether you’re looking to buy crypto with Fidelity, trade crypto on Fidelity, or simply hold it alongside your retirement investments—this platform checks nearly all the boxes.

While it’s currently limited to Bitcoin and Ethereum, the roadmap ahead looks promising. Fidelity’s reputation, technology infrastructure, and customer-first approach make it a strong contender for both first-time buyers and serious investors alike.

FAQs about Fidelity Crypto

Q: Can I buy crypto through my Fidelity IRA?
Yes! Fidelity allows you to add crypto exposure through a dedicated Fidelity Crypto IRA.

Q: What cryptos can I buy on Fidelity?
Currently, only Bitcoin and Ethereum are supported.

Q: Is there a minimum amount required to start?
You can start trading crypto on Fidelity with as little as $1.

Q: Is Fidelity crypto trading available in all U.S. states?
Not yet. As of now, residents of New York and a few other states may not be eligible. Always check Fidelity’s website for updated availability.