How To Trade Crypto On Fidelity

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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:

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

  1. Visit Fidelity’s Official Website
    Navigate to Fidelity.com and select “Open an Account.” Choose the appropriate account type — individual, joint, IRA, etc.
  2. Provide Personal Information
    You’ll need to submit your full name, address, date of birth, Social Security number, and employment details.
  3. Complete Identity Verification
    Fidelity uses automated checks and may request additional documentation (e.g., government-issued ID) to verify your identity.
  4. Fund Your Account
    Deposit funds via bank transfer, wire transfer, or by transferring securities from another broker. Minimum deposits vary depending on account type.
  5. 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:

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

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:

  1. Open the Fidelity mobile app
  2. Tap on “Crypto” in the main menu
  3. Select Bitcoin or Ethereum
  4. Choose “Buy” or “Sell”
  5. Enter the dollar amount or quantity (fractional amounts allowed)
  6. Review the estimated price, fees, and total cost
  7. 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:

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:

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:

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:

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.

👉 Stay ahead of the curve with platforms evolving alongside the crypto market.

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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