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Welcome to our comprehensive FAQ on Fidelity Crypto. If you're new to the world of digital assets, you likely have questions about how Fidelity, a traditional financial giant, fits into the crypto space. This guide covers the basics, from what Fidelity Crypto offers to how it works and who it's for.
What is Fidelity Crypto?
Fidelity Crypto is a service offered by Fidelity Investments that allows individual investors to buy, sell, and hold cryptocurrencies like Bitcoin and Ethereum directly through their Fidelity brokerage accounts. It is designed to bring crypto investing to mainstream investors in a secure and regulated environment.
Fidelity has been involved in digital assets since 2014, starting with mining and later expanding to custody services for institutional clients. In 2022, they launched Fidelity Crypto for retail investors, making it one of the first major traditional financial firms to offer direct crypto trading.
How Does Fidelity Crypto Work?
Fidelity Crypto works by integrating cryptocurrency trading into your existing Fidelity brokerage account. You can fund your account with U.S. dollars and use those funds to place orders for Bitcoin or Ethereum, which are then held securely by Fidelity's custody service.
The process is straightforward: you log in to your Fidelity account, navigate to the crypto section, and choose to buy or sell. Fidelity also offers the ability to set up recurring investments, making it easy to dollar-cost average into crypto over time.
- Fund your account with USD
- Place market, limit, or stop orders
- Cryptocurrencies are stored in Fidelity's custody
- Monitor your holdings alongside your other investments
Is Fidelity Crypto Safe?
Fidelity Crypto is considered safe due to Fidelity's long-standing reputation and institutional-grade security measures. Fidelity uses cold storage for the majority of customer crypto assets and employs advanced encryption and insurance coverage.
However, it's important to remember that crypto investments are volatile. While Fidelity provides a secure platform, the market risk remains. Fidelity is also a regulated entity, which adds a layer of investor protection compared to unregulated exchanges.
How Do I Buy Crypto on Fidelity?
To buy crypto on Fidelity, you first need to have a Fidelity brokerage account. If you don't have one, you can open it online for free. Once your account is funded, follow these steps:
- Log in to your Fidelity account
- Go to the 'Trade' menu and select 'Crypto'
- Choose the cryptocurrency you want to buy (Bitcoin or Ethereum)
- Enter the amount in dollars or coins
- Select your order type (market, limit, etc.) and review
- Submit your order
Fidelity will execute the trade and store your crypto securely. You can track your holdings under the 'Positions' tab.
What Are the Fees for Fidelity Crypto?
Fidelity Crypto charges a spread fee of up to 1% on each transaction, meaning the price you pay to buy is slightly higher than the market price, and the price you receive when selling is slightly lower. There are no commission fees or account maintenance fees.
This fee structure is competitive compared to many crypto exchanges, which often charge flat trading fees plus withdrawal fees. Fidelity's spread fee is simple and transparent, with no hidden costs.
Fidelity Crypto vs. Coinbase: Which Is Better?
Fidelity Crypto is ideal for investors who want to trade crypto within a traditional brokerage, while Coinbase is a dedicated crypto exchange offering a wider range of coins and advanced trading features.
Fidelity offers lower fees (spread only) and integrates with your existing investment portfolio, but supports only Bitcoin and Ethereum. Coinbase, on the other hand, offers hundreds of cryptocurrencies, staking rewards, and a more robust trading interface, but charges higher fees and is a separate platform.
Choose Fidelity if you prioritize simplicity and security within a familiar environment. Choose Coinbase if you need access to a broader asset selection and more advanced tools.
What Cryptocurrencies Are Available on Fidelity?
As of 2026, Fidelity Crypto supports two cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH). These are the two largest and most established digital assets, chosen for their liquidity and stability relative to smaller altcoins.
Fidelity has not announced plans to add more cryptocurrencies, focusing instead on providing a high-quality experience for these core assets. If you are interested in trading other coins, you would need to use a different exchange.
Can I Use Fidelity Crypto for Retirement Accounts?
Yes, Fidelity allows you to trade cryptocurrencies within certain retirement accounts, specifically Roth IRAs and Traditional IRAs. This feature is unique and highly appealing for long-term investors.
By holding crypto in a tax-advantaged account, you can potentially defer or avoid capital gains taxes on your crypto profits. However, not all Fidelity retirement accounts are eligible, so you should check with Fidelity to confirm eligibility for your specific account type.
How Do I Withdraw Money from Fidelity Crypto?
Withdrawing money from Fidelity Crypto is simple: you sell your crypto for U.S. dollars, and the proceeds are credited to your Fidelity cash balance. From there, you can transfer the cash to your bank account or use it for other investments.
Note that Fidelity does not currently support transferring crypto to an external wallet. This means you cannot send your Bitcoin or Ethereum to a personal wallet or another exchange. All crypto must be sold and converted to cash before it can be withdrawn.
Final Thoughts
Fidelity Crypto offers a secure and straightforward way for beginners to invest in Bitcoin and Ethereum. With its strong reputation, low fees, and integration with traditional brokerage services, it is an excellent choice for those who want to dip their toes into crypto without leaving their familiar investing platform.
While the limited coin selection and lack of external transfers may be drawbacks for advanced users, Fidelity's focus on security and simplicity makes it a solid option for long-term investors. As always, do your own research and consider your risk tolerance before investing in cryptocurrency.