Introduction
In recent years, cryptocurrency has moved from the fringes of financial speculation to a central topic in investment discussions. As digital currencies like Bitcoin and Ethereum continue to attract attention, many investors are turning to trusted financial institutions for safe, regulated ways to enter the crypto market. One of the most commonly asked questions by new investors is: Can you buy crypto on Fidelity?
The short answer is yes—but with important details to consider. This article explores how Fidelity allows investors to engage with cryptocurrencies, what features are available, and what makes its approach different from traditional crypto exchanges.
Fidelity’s Entry into the Crypto Market
Fidelity Investments is one of the largest and most respected financial services companies in the United States. Known for offering retirement accounts, mutual funds, ETFs, and brokerage services, Fidelity has built a strong reputation based on trust and regulatory compliance.
Fidelity officially entered the cryptocurrency space with the launch of Fidelity Digital Assets® in 2018. Initially, this division was designed to serve institutional clients such as hedge funds and family offices, providing secure custody and trading services for digital assets. Over time, Fidelity expanded its crypto offerings to include services for individual retail investors through Fidelity Crypto®.
What Is Fidelity Crypto®?
Fidelity Crypto® is a service that allows individual investors to buy, sell, and hold cryptocurrencies directly from the Fidelity platform. This service is accessible through the Fidelity website and mobile app, and it integrates crypto investments with other types of assets like stocks and ETFs.
Key Features:
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Supported Cryptocurrencies: As of now, Fidelity supports trading in Bitcoin (BTC) and Ethereum (ETH), the two most well-established digital assets in the market.
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Minimum Investment: Users can begin buying crypto with as little as $1.
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Commission-Free Trades: Fidelity does not charge a trading commission but earns through the bid-ask spread.
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User-Friendly Interface: The platform is designed to be easy to use for both beginners and experienced investors.
How to Buy Crypto on Fidelity
If you already have a Fidelity account, buying crypto is a simple process. Here’s how it works:
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Log into your Fidelity account through the app or website.
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Enroll in Fidelity Crypto®, which may require accepting certain terms and disclosures.
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Select the cryptocurrency you wish to buy (Bitcoin or Ethereum).
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Enter the amount you want to purchase (as low as $1).
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Confirm your transaction.
The purchased crypto will be held within your Fidelity Crypto account. However, it’s important to note that you currently cannot transfer crypto into or out of the Fidelity platform—meaning you can’t send your crypto to a personal wallet or receive coins from an external source. This restriction may change as the platform evolves.
Custody and Security
Security is a key concern for crypto investors, and Fidelity addresses this by leveraging the technology and protocols used by Fidelity Digital Assets®. Cryptocurrency holdings are stored in institutional-grade cold storage, reducing the risk of theft and hacking.
Fidelity has years of experience in asset protection and has implemented strong systems for account security, encryption, and fraud prevention. While no system is entirely immune to risk, Fidelity’s infrastructure is among the most robust in the financial industry.
Limitations to Consider
Although Fidelity’s entry into the crypto space is a welcome development for traditional investors, the platform is not without limitations:
1. Limited Coin Selection
Fidelity currently supports only Bitcoin and Ethereum. If you’re looking to invest in other cryptocurrencies like Solana, Cardano, or meme coins like Dogecoin, you’ll need to use a more specialized crypto exchange.
2. No Transfers In or Out
As mentioned, Fidelity does not currently allow users to send or receive crypto from external wallets. This means that you cannot use Fidelity to interact with decentralized apps (dApps) or transfer funds between platforms.
3. Educational Resources
While Fidelity is working to improve its crypto education, it may not yet offer the same depth of crypto-specific tutorials or market analysis tools found on major crypto-focused platforms.
Who Should Use Fidelity to Buy Crypto?
Fidelity’s crypto service is best suited for:
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Traditional investors who want to gain exposure to Bitcoin or Ethereum without opening a new account at a separate exchange.
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Beginner crypto users who are already comfortable with Fidelity’s platform and want a familiar way to invest in digital assets.
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Long-term holders who aren’t concerned with transferring or using crypto outside the Fidelity ecosystem.
For active crypto traders or those interested in the full spectrum of blockchain applications, Fidelity may serve as a stepping stone rather than a complete solution.
Fidelity vs. Other Platforms
To understand Fidelity’s position in the market, let’s compare it to traditional crypto exchanges like Coinbase and Kraken.
| Feature | Fidelity Crypto | Coinbase | Kraken |
|---|---|---|---|
| Supported Coins | BTC, ETH | 200+ | 150+ |
| Transfer In/Out | No | Yes | Yes |
| Custody Type | Institutional-grade | Hot/Cold Wallets | Hot/Cold Wallets |
| Target User Base | Traditional investors | General public | Advanced users |
| Commission Fees | No commissions | Variable | Low |
| Integration with Stocks | Yes | No | No |
As shown, Fidelity stands out for its security and simplicity, but lacks the variety and functionality of crypto-native platforms.
Future Outlook
Fidelity has shown a clear interest in expanding its crypto services. As regulatory clarity improves and more investors demand access to digital assets, Fidelity may:
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Add support for more cryptocurrencies
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Enable transfers to and from external wallets
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Introduce staking or DeFi features
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Provide more advanced research tools and analytics
These enhancements could position Fidelity as a more competitive option for crypto-savvy users.
Final Thoughts
So, can you buy crypto on Fidelity? Absolutely. With Fidelity Crypto®, retail investors can securely purchase and hold Bitcoin and Ethereum on a platform they already trust. While the service has some restrictions, such as limited coin selection and the inability to move assets on-chain, it offers a solid foundation for those beginning their crypto journey.
As cryptocurrency continues to integrate into mainstream finance, institutions like Fidelity will play a crucial role in shaping how everyday investors interact with this new asset class. Whether you’re just starting out or looking to diversify your portfolio, Fidelity offers a familiar and regulated way to take that first step into the world of crypto.