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How To Trade Crypto On Fidelity
Fidelity is the first major brokerage to bring crypto trading to investors, but is it any good?
Fidelity is the third-largest asset manager in the world, currently managing a massive $3.6 trillion worth of assets. Fidelity also happens to be very enthusiastic about crypto:
In 2014, they began mining bitcoin.
In 2018, they launched bitcoin trading for institutional investors and hedge funds.
In 2020, they released their bitcoin ETF.
In May 2022, they became the first retirement plan provider to add Bitcoin as a 401(k) plan investment option.
Now, Fidelity is unveiling crypto trading for retail customers.
In this article, we’ll explain everything you need to know about trading crypto on Fidelity.
Trading crypto is challenging for many people. Decentralized on-chain trading platforms like Uniswap are exceedingly difficult for the average trader to use, while exchanges like Coinbase and Kraken, while much more manageable than decentralized platforms, are still tricky to onboard onto.
Fidelity solves this by allowing people to trade crypto directly within their already-established Fidelity account and mobile app.
To trade crypto on Fidelity, you must first open an account on their website.
Once doing so, you will have immediate access to the Fidelity Crypto section of your Fidelity mobile app. From there, you can begin trading bitcoin and ethereum commission-free directly inside the app with as little as $1.
FAQs
How can I gain exposure to crypto through Fidelity without access to Fidelity Crypto?
There are multiple ways to gain exposure to crypto through Fidelity that do not require access to Fidelity Crypto.
The Fidelity Crypto Industry and Digital Payments ETF (FDIG) offers exposure to companies involved in blockchain technology, cryptocurrency, and digital payment processing.
The Fidelity Metaverse ETF (FMET) offers exposure to companies virtually augmenting the future of the internet through digital content, infrastructure, wearable technology, and other Metaverse-related activities.
If you live in Canada, the Fidelity Advantage Bitcoin ETF offers exposure to bitcoin, the world’s largest crypto asset.
Can you buy crypto in a Fidelity 401(k) or IRA?
Yes, Fidelity offers customers the opportunity to add crypto to their 401(k) or IRA through a Digital Assets Account, which allows employees to add bitcoin to their core 401(k) investment lineup.
Does Fidelity have a crypto wallet?
A crypto wallet usually means a place where the wallet owner stores their cryptocurrencies in a self-custody manner. This means they alone control the crypto assets in the wallet, not a third party such as a bank or an exchange. In this sense, Fidelity does not have a crypto wallet, as Fidelity stores your crypto for you. However, considering that Fidelity is an asset manager with years of experience, this is a great option to keep your crypto assets safe.
What crypto assets are available to trade on Fidelity?
At this time, only bitcoin and ethereum are available to trade on Fidelity, although additional cryptocurrencies may be added in the future.
What are the fees on Fidelity Crypto?
Trades on Fidelity Crypto are commission-free. However, Fidelity Crypto does factor in a spread of 1% into each trade. A spread is the difference between the price the trade is executed at and the price at which Fidelity fills your order. So, theoretically, you could lose up to 1% on each trade.
Does Fidelity have a crypto exchange?
Yes, Fidelity operates a separate crypto exchange with Citadel, Charles Schwab, and Virtu, known as EDX Markets. EDX offers trading for bitcoin, ethereum, bitcoin cash, and litecoin, but is currently membership-only. Applications can be found here.
What states is Fidelity Crypto available in?
Alabama
Iowa
Nevada
South Dakota
Arkansas
Kansas
New Hampshire
Tennessee
California
Kentucky
New Jersey
Texas
Colorado
Massachusetts
New York
Utah
Delaware
Michigan
North Dakota
Vermont
Florida
Mississippi
Oklahoma
Virginia
Idaho
Missouri
Oregon
Washington
Illinois
Montana
Pennsylvania
Wisconsin
Indiana
Nebraska
South Carolina
Wyoming
Unfortunately, the timetable for new states and locations to be added to Fidelity Crypto is uncertain.
Conclusion
Fidelity Crypto is an attractive option for traders looking to safely gain access to crypto assets without the technical hassle of using a traditional crypto exchange.
Between Fidelity Crypto, EDX Markets, the 401(k) Digital Asset Account, the FDIG and FMET, and the Canadian Bitcoin ETF, Fidelity is building a crypto empire worth watching.