Cryptocurrency has firmly established itself in the modern investment landscape, offering traders and investors opportunities driven by volatility, decentralization, and long-term growth potential. As digital assets gain mainstream traction, traditional financial institutions like Fidelity have stepped in to bridge the gap between conventional finance and the crypto economy. While Fidelity doesn’t operate like a typical cryptocurrency exchange, it provides a regulated, secure, and user-friendly platform for buying and selling select digital currencies.
This guide walks you through everything you need to know about trading crypto on Fidelity—from account setup and supported assets to fees, security, and portfolio integration.
Fidelity’s Approach To Cryptocurrency
Fidelity’s entry into the crypto space began with institutional-grade custody solutions and exposure through Bitcoin trusts and managed funds. Recognizing growing retail demand, the firm launched Fidelity Crypto, a dedicated service that allows individual investors to trade cryptocurrencies directly within their Fidelity brokerage accounts.
Unlike decentralized or offshore exchanges, Fidelity operates under strict regulatory oversight, ensuring compliance with U.S. financial standards such as Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. This makes it an attractive option for investors who prioritize security and legitimacy over advanced trading features.
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How To Set Up A Fidelity Account For Crypto Trading
To begin trading crypto on Fidelity, you must first open a brokerage account. Here’s how:
- Visit the Official Website: Go to Fidelity’s website and select “Open an Account.”
- Provide Personal Information: Enter your legal name, address, Social Security number, employment details, and financial profile.
- Identity Verification: Fidelity will verify your identity using third-party databases or by requesting documentation.
- Fund Your Account: Link your bank account or transfer funds via ACH, wire transfer, or external brokerage transfer.
- Enable Fidelity Crypto: Once approved, access the Fidelity mobile app, where crypto trading is primarily available. You may need to opt into the crypto feature manually.
Note: Not all users gain immediate access—Fidelity rolls out crypto capabilities gradually based on eligibility.
Supported Cryptocurrencies On Fidelity
As of now, Fidelity supports trading in two major cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
These are the most widely adopted and liquid digital assets, making them ideal for conservative institutional adoption. By focusing on these leaders, Fidelity ensures robust infrastructure, deep liquidity, and strong security protocols.
While there is no official timeline yet, Fidelity may expand its offerings to include additional assets like Bitcoin Cash or Litecoin as regulatory clarity improves.
For investors seeking broader altcoin exposure, other platforms may be more suitable—but Fidelity excels as a starting point for core crypto allocation.
Navigating The Fidelity Crypto Platform
The Fidelity Crypto experience is designed for simplicity and integration. Accessible primarily through the mobile app, the interface blends your crypto holdings with traditional investments like stocks, ETFs, and mutual funds.
Key features include:
- Real-time price charts with historical performance data
- Instant buy/sell functionality for BTC and ETH
- Fractional share purchases, allowing investments from as little as $1
- Portfolio overview showing crypto’s weight in your total asset mix
- In-app educational content covering blockchain basics and market trends
The platform avoids complex jargon, making it ideal for beginners while still useful for experienced investors looking to diversify conservatively.
How To Place A Crypto Trade On Fidelity
Executing a trade is straightforward:
- Open the Fidelity mobile app
- Tap on “Crypto” in the navigation menu
- Choose either Bitcoin or Ethereum
- Enter the dollar amount or quantity you wish to buy/sell
- Review the estimated price, transaction fee (spread), and final cost
- Confirm the trade
Orders typically execute instantly during normal market conditions. During periods of high volatility, slight delays may occur.
You can also set up recurring investments—ideal for dollar-cost averaging into crypto positions over time.
Fees And Pricing Structure
Fidelity does not charge commissions on crypto trades. Instead, it earns revenue through a bid-ask spread, which is built into the price you see at checkout.
This model is common across many regulated platforms and promotes transparency—there are no hidden fees. The spread varies depending on market liquidity but generally remains competitive.
Compared to some retail exchanges that advertise “zero fees” but have wider spreads or poor execution, Fidelity’s pricing is fair and clearly disclosed before every trade.
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Security And Asset Protection
Security is one of Fidelity’s strongest advantages in the crypto space.
Key protections include:
- Cold storage custody: Over 95% of customer crypto assets are stored offline in geographically dispersed vaults
- Two-factor authentication (2FA): Required for all logins and sensitive actions
- End-to-end encryption: Secures data transmission and account access
- No private key access: Unlike self-custody wallets, users don’t control private keys—but benefit from institutional-grade protection
While this means you can’t withdraw crypto to external wallets (a limitation for some), it significantly reduces the risk of theft or loss due to human error.
Fidelity also carries crime insurance covering digital assets—a rare feature among retail brokers.
Integrating Crypto Into Your Investment Portfolio
One of Fidelity’s standout benefits is portfolio unification. Instead of managing crypto separately on an exchange, you can view your BTC and ETH holdings alongside your 401(k), IRAs, taxable accounts, and stock portfolios—all in one place.
This enables:
- Holistic diversification across asset classes
- Accurate risk assessment including crypto exposure
- Simplified tax reporting, since gains/losses are tracked within a regulated environment
- Automated rebalancing tools to maintain target allocations
For long-term investors, this integrated approach supports disciplined strategies without the chaos of managing multiple platforms.
Educational Resources For New Crypto Investors
Fidelity offers extensive learning materials tailored to newcomers:
- Beginner guides on blockchain technology
- Explainers on how Bitcoin mining and Ethereum staking work
- Market updates during volatile events (e.g., halvings, regulatory shifts)
- Risk management tips for handling price swings
These resources help users build confidence before investing real money—aligning with Fidelity’s mission of responsible investing.
Limitations To Be Aware Of
While Fidelity provides a safe gateway to crypto, it’s not designed for active traders or crypto enthusiasts seeking full control. Key limitations include:
- ❌ No support for altcoins beyond BTC and ETH
- ❌ Mobile-only crypto trading (desktop access limited)
- ❌ No advanced features like margin trading, futures, staking, or DeFi integration
- ❌ No wallet withdrawals—crypto stays within Fidelity’s custodial system
These constraints reflect regulatory caution rather than technical shortcomings. For now, Fidelity serves best as a long-term holding platform, not a full-service crypto exchange.
Frequently Asked Questions (FAQ)
Q: Can I withdraw my cryptocurrency from Fidelity to an external wallet?
A: No. Currently, Fidelity does not allow withdrawals of crypto to personal wallets. Assets remain in custodial accounts.
Q: Is there a minimum amount required to start trading crypto on Fidelity?
A: No minimums apply—you can buy fractional shares starting at $1.
Q: Does Fidelity offer crypto trading on its desktop platform?
A: Crypto buying and selling are only available via the mobile app; desktop users can view balances but not execute trades.
Q: Are my crypto holdings insured on Fidelity?
A: Yes. Fidelity maintains insurance coverage for digital assets held in cold storage against theft or security breaches.
Q: Can I trade crypto in my IRA through Fidelity?
A: Not directly yet—but Fidelity offers exposure via Bitcoin trusts in certain retirement accounts.
Q: How does Fidelity make money if there are no commissions?
A: Revenue comes from the spread between buy and sell prices, which is clearly displayed before each trade.
Final Thoughts
Trading crypto on Fidelity offers a balanced blend of innovation and reliability. It’s an excellent choice for traditional investors, retirement planners, and crypto beginners who want exposure to Bitcoin and Ethereum without navigating risky or unregulated exchanges.
Though limited in scope compared to dedicated platforms, Fidelity compensates with unmatched security, regulatory compliance, and seamless portfolio integration.
As the digital asset ecosystem matures, expect Fidelity to expand its offerings—potentially adding more coins, staking options, or even self-custody features down the line.
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