Fidelity Crypto

Fidelity Crypto snapshot
Minimum Deposit $1
Deposit Methods ACH, Bank Account, Wire Transfer
iOS app score 4.8
Official rating from the iOS App Store as of November 18, 2024.
Android app score 4.5
Official rating from the Android Play Store as of November 18, 2024.
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Pros
  • Trade crypto alongside stocks & ETFs
  • Crypto IRAs available (Traditional, Roth, Rollover)
  • Institutional-grade security
  • Backed by Fidelity's 10+ years in crypto
Cons
  • Only 4 cryptocurrencies supported
  • Not available in all states
  • 1% spread fee on trades
  • Not FDIC/SIPC insured

Table of Contents



What is Fidelity Crypto?

Fidelity Crypto is a cryptocurrency trading service offered by Fidelity Digital Assets that lets individual investors buy, sell, and hold cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Solana directly within their existing Fidelity accounts.

The service integrates crypto with traditional investments in one app, making it convenient for mainstream investors who want to add crypto to their portfolio without using a separate exchange.

Key Takeaways

  • Fidelity Crypto is a legitimate way to buy Bitcoin backed by Fidelity's 10+ years in digital assets.
  • Trade crypto in the same app where you manage stocks, ETFs, and retirement accounts.
  • Offers Crypto IRAs for tax-advantaged retirement investing in Bitcoin and Ethereum.
  • 1% spread fee on all crypto trades; no commission or custody fees.

Is Fidelity Crypto Safe?

Fidelity Crypto is backed by Fidelity Digital Assets, which has been involved in crypto since 2014 when it began mining Bitcoin. The service launched in 2018 and operates as a national trust bank.

Key security features include:

  • Cold-vaulted storage: Digital assets are stored offline in secure cold storage
  • Monitored facilities: Physical and digital security measures protect your crypto
  • Multi-layered protocols: Your crypto is protected at every step of the way
  • Off-chain privacy: Private holdings are kept off-chain for enhanced privacy
Important: Crypto assets on Fidelity are not insured by FDIC, SIPC, or any government agency. This is different from traditional securities and bank accounts.

Fidelity Crypto Features

Integrated Access

Trade crypto on the same platform where you trade stocks and ETFs. View your entire portfolio—crypto and traditional investments—in one place.

Spot Crypto

Buy and own actual digital assets (BTC, ETH, LTC, SOL). Unlike some platforms, you're purchasing real cryptocurrency, not derivatives.

Crypto IRAs

Invest in crypto like Bitcoin and Ethereum in a Traditional, Rollover, or Roth IRA for tax-advantaged retirement investing.

Crypto Transfers

If you have eligible crypto somewhere else, you can transfer it to Fidelity to manage all of your crypto in one place.

Education & Support

Fidelity provides educational resources for both beginners and experienced investors, including their "Covering Crypto" livestream series and 24/7 virtual assistance.


How to Buy Bitcoin on Fidelity Crypto

Here's how to get started with Fidelity Crypto:

  1. Open an eligible Fidelity brokerage account - If you don't have one, you can open it during the Fidelity Crypto setup process.
  2. Open a Fidelity Crypto account - Link it to your brokerage account for funding.
  3. Fund your account - Transfer USD from your linked brokerage account.
  4. Place your order - Tell Fidelity how much crypto you want to buy as a market or limit order.

You can also transfer crypto you already own from other platforms into your Fidelity Crypto account.


Fidelity Crypto Fees

Fidelity Crypto's fee structure is straightforward:

Fee Type Amount
Trading Fee (Spread) 1% on buy and sell transactions
Account Opening Free
Account Maintenance Free
Custody Free
Crypto IRA Trading Fee 1% on buy and sell transactions

Note: While there are no explicit commissions, Fidelity charges a 1% spread on all crypto transactions. This means the price you pay will be approximately 1% higher than the market price when buying, and 1% lower when selling.


Supported Regions

Fidelity Crypto is only available to US citizens residing in states where Fidelity Digital Assets is licensed to serve customers.

The service is not available in:

  • New York
  • Hawaii

Some restrictions apply for Crypto IRAs in certain states like California and Oregon.


Fidelity Crypto IRAs

One of Fidelity Crypto's standout features is the ability to invest in crypto through tax-advantaged retirement accounts.

Available IRA Types:

  • Traditional IRA: Tax-deductible contributions, taxes paid on withdrawal
  • Roth IRA: After-tax contributions, tax-free qualified withdrawals
  • Rollover IRA: Move funds from an existing retirement account

Crypto IRA Fees:

  • No fees to open or maintain the account
  • No custody fees
  • 1% trading fee on crypto buy and sell transactions

This makes Fidelity Crypto an attractive option for long-term investors who want to hold Bitcoin in a retirement account with potential tax benefits.


Who is Fidelity Crypto For?

Fidelity Crypto is designed for:

  • Long-term investors seeking a convenient way to add crypto to a diversified portfolio
  • Existing Fidelity customers who want to manage all investments in one place
  • Retirement-focused investors interested in holding crypto in an IRA
  • Security-conscious investors who value institutional-grade custody

It may not be ideal for:

  • Active traders looking for lower fees
  • Investors wanting access to a wide variety of altcoins
  • Residents of New York or Hawaii

Fidelity Crypto Alternatives

River is a good alternative if you're focused on Bitcoin only and want lower fees, especially for recurring purchases (0% fee for DCA).

Coinbase offers access to over 240 cryptocurrencies if you need more variety, though fees can be higher for small transactions.

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