Cryptocurrency has become a cornerstone of modern investing, offering dynamic opportunities for growth, diversification, and exposure to innovative blockchain technologies. As digital assets gain mainstream acceptance, 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 crypto exchange, it provides a secure, regulated, and user-friendly way to trade major cryptocurrencies such as Bitcoin and Ethereum.
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.
Why Trade Crypto on Fidelity?
Fidelity’s entry into the crypto space reflects a growing trend: institutional adoption of digital assets. Unlike decentralized or overseas exchanges, Fidelity offers a trusted, compliant platform backed by decades of experience in wealth management and brokerage services.
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Key advantages include:
- Regulatory compliance with U.S. financial standards
- Seamless integration with existing investment accounts
- Strong security protocols, including cold storage and two-factor authentication
- Educational resources tailored to new and experienced investors
For traditional investors hesitant about entering the volatile world of crypto, Fidelity offers a familiar and safe on-ramp.
Getting Started: Setting Up Your Fidelity Account
To begin trading crypto on Fidelity, you must first open a brokerage account. The process is straightforward and designed for both new and experienced investors.
Step-by-Step Account Setup
- Visit Fidelity’s Official Website
Navigate to Fidelity.com and select “Open an Account.” Choose the appropriate account type — individual, joint, IRA, etc. - Provide Personal Information
You’ll need to submit your full name, address, date of birth, Social Security number, and employment details. - Complete Identity Verification
Fidelity uses automated checks and may request additional documentation (e.g., government-issued ID) to verify your identity. - Fund Your Account
Deposit funds via bank transfer, wire transfer, or by transferring securities from another broker. Minimum deposits vary depending on account type. - Enable Fidelity Crypto Access
Crypto trading is primarily available through the Fidelity mobile app. After logging in, navigate to the crypto section and opt-in to enable trading features.
Once activated, you can start buying and selling supported cryptocurrencies immediately.
Supported Cryptocurrencies on Fidelity
Fidelity currently supports a curated selection of major digital assets:
- Bitcoin (BTC)
- Ethereum (ETH)
These two coins represent over 60% of the total cryptocurrency market cap and are widely recognized for their long-term potential. By focusing on established assets, Fidelity minimizes risk while ensuring robust infrastructure for custody and trading.
Although altcoins and newer tokens aren’t available yet, Fidelity has signaled interest in expanding its offerings as regulatory clarity improves and demand grows.
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Navigating the Fidelity Crypto Platform
The Fidelity mobile app delivers a clean, intuitive interface that blends crypto holdings with traditional investments like stocks, ETFs, and mutual funds.
Key Features
- Real-Time Price Charts: View live price movements and historical trends for BTC and ETH.
- Fractional Purchases: Buy crypto with as little as $1 — ideal for dollar-cost averaging.
- Portfolio Overview: See your crypto assets alongside other investments for holistic financial tracking.
- Trade Execution Tools: Place instant buy/sell orders with clear pricing and fee breakdowns.
- Security Dashboard: Monitor login activity, enable 2FA, and manage alerts.
The platform emphasizes simplicity, making it especially suitable for beginners who want to dip their toes into crypto without overwhelming complexity.
How to Place a Crypto Trade on Fidelity
Executing a trade is quick and secure:
- Open the Fidelity mobile app
- Tap on “Crypto” in the main menu
- Select Bitcoin or Ethereum
- Choose “Buy” or “Sell”
- Enter the dollar amount or quantity (fractional amounts allowed)
- Review the estimated price, fees, and total cost
- Confirm the transaction
Trades typically settle instantly during normal market conditions. During high volatility periods, slight delays may occur.
Understanding Fees and Pricing Structure
Fidelity does not charge commission fees for crypto trades — a major advantage over many retail brokers.
Instead, it uses a bid-ask spread model, meaning the price you pay includes a small markup built into the quoted rate. This spread covers operational costs and liquidity provision.
While transparently displayed at checkout, frequent traders should monitor spreads closely, as they can impact profitability over time — especially with large-volume transactions.
There are no hidden fees for deposits, withdrawals (in-kind transfers), or holding crypto long-term.
Security and Asset Protection
Security is one of Fidelity’s strongest selling points. The company applies institutional-grade safeguards to protect client assets:
- Cold Storage: Over 95% of customer crypto is stored offline in geographically dispersed vaults
- Two-Factor Authentication (2FA): Required for all logins and sensitive actions
- End-to-End Encryption: All data transmissions are encrypted
- AML/KYC Compliance: Strict adherence to anti-money laundering and identity verification laws
These measures make Fidelity one of the most secure gateways for retail investors entering the crypto market.
Integrating Crypto Into Your Investment Portfolio
One of Fidelity’s standout features is portfolio integration. Unlike standalone exchanges, Fidelity allows you to view your crypto holdings alongside stocks, bonds, retirement accounts, and more.
This unified approach enables:
- Strategic Diversification: Allocate a portion of your portfolio to digital assets for risk mitigation
- Easy Rebalancing: Adjust allocations between asset classes directly within the app
- Performance Analytics: Track how crypto impacts overall returns using built-in reporting tools
For long-term investors focused on wealth preservation and growth, this holistic perspective adds significant value.
Educational Resources for New Investors
Fidelity provides extensive learning materials to help users understand cryptocurrency fundamentals and responsible investing practices.
Available resources include:
- Beginner guides on blockchain technology
- Market insights and volatility analysis
- Video tutorials on trading mechanics
- Security best practices (e.g., avoiding scams, protecting private keys)
These tools empower users to make informed decisions — reducing emotional trading and promoting disciplined strategies.
Limitations to Be Aware Of
While Fidelity offers a reliable entry point into crypto, it has some constraints:
- ❌ No altcoins or tokens beyond Bitcoin and Ethereum
- ❌ Mobile-only trading access — desktop functionality is limited
- ❌ No advanced features like margin trading, futures, staking, or DeFi integrations
Advanced traders may find these limitations restrictive and may need to supplement their activity with dedicated crypto platforms.
Frequently Asked Questions (FAQ)
Can I withdraw my crypto from Fidelity?
No — currently, Fidelity does not allow direct withdrawals of cryptocurrency to external wallets. You can only sell your holdings for cash and transfer funds to your linked bank account.
Is there a minimum investment for crypto on Fidelity?
No fixed minimum exists. Thanks to fractional shares, you can invest as little as $1 in Bitcoin or Ethereum.
Is Fidelity Crypto available internationally?
No. Fidelity’s crypto trading services are currently available only to U.S.-based customers.
Does Fidelity offer staking or yield generation?
Not at this time. Fidelity does not support staking, lending, or interest-bearing crypto accounts.
Are gains from crypto trading taxable on Fidelity?
Yes. Any sale of cryptocurrency is a taxable event. Fidelity provides annual tax forms (Form 1099-B) detailing your transactions.
How safe is my money on Fidelity Crypto?
Extremely safe. Assets are protected by SIPC insurance (up to $500,000), cold storage protocols, encryption, and regulatory oversight.
Final Thoughts
Trading crypto on Fidelity offers a balanced blend of innovation and reliability. It’s particularly well-suited for beginners, long-term investors, and traditional portfolio holders looking to add digital assets without sacrificing security or simplicity.
While it lacks the breadth of coins and advanced tools found on specialized exchanges, its strengths lie in regulation, ease of use, and seamless integration with broader financial planning.
As the digital asset ecosystem matures, expect Fidelity to expand its offerings — potentially adding more coins, staking options, or even Web3 integrations.
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For now, if you're seeking a low-risk way to invest in Bitcoin and Ethereum through a trusted financial institution, Fidelity remains one of the best choices available in the U.S. market.
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