When Fidelity Investments launched its crypto service in 2021, it marked the company's first foray into digital assets, offering access to its approximately 40 million individual clients.
Cryptocurrency isn't for everyone — it's inherently risky, volatile, and complex to navigate. Fidelity Crypto simplifies the process by limiting initial investment options to a few well-established cryptocurrencies, making it an accessible entry point for beginners.
Key Features of Fidelity Crypto
Pros
✅ Low Trading Fees – Fidelity charges a spread of up to 1% on trades, which is competitive compared to platforms like Coinbase (1%–4%).
✅ No Minimum Deposit – Investors can start with as little as $1.
✅ Trusted Brand – Fidelity’s reputation provides reassurance for cautious investors.
Cons
❌ Limited Crypto Selection – Only Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are available.
❌ Restricted Functionality – No staking, transfers to external wallets, or DeFi integration.
❌ Geographic Limitations – Available in only 38 U.S. states.
How Fidelity Crypto Stacks Up Against Competitors
| Feature | Fidelity Crypto | Coinbase | Robinhood Crypto |
|---|---|---|---|
| Trading Fees | Up to 1% | 1%–4% | $0 per trade |
| Cryptos Offered | 3 | 200+ | 15+ |
| Staking Rewards | ❌ No | ✅ Yes | ❌ No |
| External Transfers | ❌ No | ✅ Yes | ✅ Yes |
👉 Compare crypto platforms for more advanced trading features.
Who Should Use Fidelity Crypto?
Ideal For:
- Beginners seeking a simple, low-risk entry into crypto.
- Existing Fidelity customers who want seamless integration with their brokerage accounts.
- Long-term holders of Bitcoin, Ethereum, or Litecoin.
Not Ideal For:
- Advanced traders needing altcoins, staking, or DeFi access.
- Users outside supported states (check availability above).
FAQ Section
1. Can I transfer crypto out of Fidelity?
No, Fidelity currently prohibits transfers to external wallets.
2. Does Fidelity Crypto support staking?
No, staking rewards are unavailable.
3. What are the fees for trading?
Fidelity charges a spread of up to 1% per trade.
4. Which states support Fidelity Crypto?
It’s available in 38 states, including California, Texas, and New York.
5. How does Fidelity Crypto ensure security?
Fidelity employs enterprise-grade custody solutions and insurance protections.
Final Verdict
Fidelity Crypto is a solid choice for conservative investors dipping their toes into cryptocurrency. While its limited selection and functionality may deter advanced users, its low fees and trusted brand make it a viable option for beginners.
👉 Explore crypto investment strategies to maximize your portfolio.
Looking ahead, Fidelity may expand its offerings, but for now, it remains a simplified gateway into Bitcoin, Ethereum, and Litecoin.
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