Fidelity Investments offers established pathways for investors looking to gain exposure to the dynamic cryptocurrency market. This guide details the available options, from direct coin trading to investing in specialized funds, providing a clear overview of how to navigate their platform.
Understanding Fidelity's Crypto Offerings
Fidelity provides two primary methods for engaging with digital assets: direct cryptocurrency trading and cryptocurrency-focused Exchange-Traded Funds (ETFs). The direct trading option is available through a dedicated Fidelity Crypto® account, which is separate from a standard brokerage account. Currently, this account supports trading for Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
For those who prefer a more traditional investment vehicle, a wide selection of crypto-related ETFs can be traded directly within an existing standard Fidelity brokerage account. This approach offers indirect exposure to the crypto market without the need to manage a separate digital wallet.
Preparing to Invest
Before you begin trading cryptocurrencies directly, you must set up the required accounts. The process is streamlined and can be completed online in a matter of minutes.
- Step 1: Open a standard Fidelity brokerage account if you do not already have one.
- Step 2: Open a Fidelity Crypto® account, which is linked to your brokerage account.
- Step 3: Fund your account to start trading.
It is important to remember that a separate crypto account is mandatory for direct trading of BTC, ETH, and LTC. For trading crypto ETFs, only a standard brokerage account is necessary.
How to Trade Cryptocurrencies on Fidelity
The most straightforward way to trade digital assets is through the Fidelity mobile app. The process is designed for ease of use, making it accessible for beginners.
Using the Mobile App
- Log in to your Fidelity mobile app.
- Tap the Discover icon located in the bottom-right corner of the screen.
- On the Discover page, scroll to the Collections area and select the Crypto option.
- This will open the crypto trading hub, which features a watchlist for Bitcoin and Ethereum, relevant news, and market data.
While Litecoin is also supported, you may need to search for LTC/USD within the app to view its specific trading page and data.
The trading interface provides a clean, simple chart displaying up to one year of price history. While advanced charting tools are not available for cryptocurrencies, Fidelity supplies essential trading details below the chart, including market capitalization, 24-hour trading volume, and current bid-ask spreads. Tapping the Buy button opens an order ticket where you can place market or limit orders.
Trading on the Website
Fidelity’s full website also supports crypto trading, offering a similar experience to the mobile app for those who prefer a larger screen. It’s worth noting that the advanced Active Trader Pro desktop platform does not currently support direct cryptocurrency trading.
For investors seeking a broader range of assets, the selection of crypto ETFs is extensive. 👉 Explore more strategies for diversifying your portfolio with various asset classes.
Researching and Trading Crypto ETFs
For investors seeking exposure to a wider crypto market or specific strategies like shorting, Fidelity’s suite of crypto ETFs is a powerful tool. These funds trade like traditional stocks and can be bought or sold short within a standard brokerage account.
Finding Crypto ETFs
To locate these funds on Fidelity’s website, follow these steps:
- Navigate to the News & Research tab.
- Select Fund Screener.
- Under the asset class filter, choose Alternative.
- Browse the results. While some non-crypto funds may appear, the list will be predominantly composed of cryptocurrency-related ETFs.
An example is the WisdomTree Bitcoin Fund (BTCW). Its fund details page provides critical information for investors, such as the expense ratio. BTCW, for instance, lists a 0.25% total expense ratio but often has a fee waiver in place, resulting in a net cost of zero for investors. The fund's primary holding is Bitcoin.
Executing Trades
Crypto ETFs can be traded on all Fidelity platforms: the desktop website, the mobile app, and through Active Trader Pro. You can use a variety of order types, including:
- Market Orders
- Limit Orders
- Conditional Orders
- Trailing Stop Orders
- OTOCO (One Triggers OCO) and OCO (One Cancels Other) Orders
You can add these ETFs to your watchlists to monitor their performance easily.
Understanding Fees and Costs
A significant advantage of using Fidelity for digital asset investing is its transparent and straightforward pricing structure.
- Commissions: Fidelity charges $0 commissions for both cryptocurrency trades and ETF transactions.
Spreads: The primary cost of trading is the bid-ask spread.
- For cryptocurrencies, Fidelity adds a spread of 1% to the execution price for both buys and sells.
- For ETFs, the spread is not set by Fidelity but fluctuates based on the market liquidity of the specific fund.
- Account Fees: There are no account fees or minimums required for either a Fidelity Crypto® account or a standard brokerage account.
Frequently Asked Questions
What cryptocurrencies can I buy directly on Fidelity?
You can directly trade Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) through a dedicated Fidelity Crypto® account. This account is necessary for direct trading and is separate from a standard brokerage account.
Does Fidelity charge commissions for crypto trading?
No, Fidelity does not charge any trading commissions for buying or selling cryptocurrencies. The main cost is built into the spread, which is 1% for crypto transactions.
Can I trade cryptocurrencies on Fidelity’s Active Trader Pro platform?
No, direct cryptocurrency trading is not currently supported on the Active Trader Pro desktop platform. However, you can trade crypto ETFs on it. Direct crypto trades must be executed through the Fidelity website or mobile app.
How do I find and invest in crypto ETFs on Fidelity?
Use the Fund Screener tool under the "News & Research" tab. Filter by the "Alternative" asset class to find a list of crypto-related ETFs. You can trade these in any standard brokerage account without needing a special crypto account.
Is there a better alternative for trading a wider selection of coins?
Some competing platforms, like Robinhood, support trading for over 25 different cryptocurrencies, which is a broader selection than Fidelity’s three. They may also offer tighter spreads on crypto trades. However, Fidelity remains a strong choice for its reputation, security, and integration with traditional investing.
Are my cryptocurrencies insured?
Digital assets held in a Fidelity Crypto® account are not protected by SIPC insurance. However, Fidelity has detailed custody and security measures in place. It's crucial to review their terms of service for specific details on digital asset protection.
Exploring Other Options
While Fidelity provides a secure and integrated environment, some investors may seek platforms with a wider selection of individual cryptocurrencies or different fee structures. Other major brokers and specialized crypto exchanges offer access to dozens more coins, such as Solana (SOL), Cardano (ADA), and Polygon (MATIC). Always compare spreads, security features, and supported assets before choosing a platform.