Yes, Fidelity lets you buy and hold certain cryptocurrencies, but not through your regular brokerage account
Fidelity offers cryptocurrency trading through a separate platform called Fidelity Crypto, which is distinct from your standard Fidelity brokerage account. You cannot buy Bitcoin, Ethereum, or other digital assets directly in your regular investment account the way you would buy stocks or mutual funds. Instead, you open a separate crypto account, fund it, and trade there.
As of now, Fidelity Crypto supports a limited number of cryptocurrencies — primarily Bitcoin and Ethereum — rather than thousands of coins available on other platforms. The service is available to U.S. residents and requires you to meet Fidelity's account opening requirements, which include identity verification.
The main advantage of using Fidelity for crypto is that you're working with an established brokerage firm regulated by the SEC and FINRA, rather than a crypto-only exchange. Your account has the same security infrastructure Fidelity uses for traditional investments. The trade-off is a smaller selection of cryptocurrencies and potentially higher fees than some crypto-specific platforms.
Key Takeaways
- Fidelity Crypto is a separate account from your regular Fidelity brokerage account, and you must open it independently to trade digital assets.
- Fidelity currently offers Bitcoin and Ethereum through Fidelity Crypto, not the thousands of altcoins found on other crypto platforms.
- You fund your Fidelity Crypto account by transferring money from your linked bank account or from another Fidelity account you already own.
- Fidelity charges transaction fees for buying and selling crypto, and these fees vary depending on the size and type of your trade.
- Your crypto holdings in Fidelity Crypto are held in custody by Fidelity, meaning the company stores and secures your digital assets on your behalf.
How to open a Fidelity Crypto account
Start by visiting the Fidelity Crypto section of Fidelity's website or opening the Fidelity mobile app and navigating to the crypto section. You'll see a button to open a new Fidelity Crypto account. Click it and you'll be asked to verify your identity — Fidelity will ask for your Social Security number, date of birth, and address, the same information required for any brokerage account.
The identity verification process is usually when ready or takes a few minutes. Once approved, you can link a bank account to fund your new crypto account. Fidelity accepts transfers from external bank accounts, and you can also transfer money from an existing Fidelity brokerage or retirement account if you have one. After your first deposit clears — which typically takes one to three business days for bank transfers — you can begin buying cryptocurrency.
You do not need to close or change your existing Fidelity accounts to open a Fidelity Crypto account. They operate independently, so you can have a regular brokerage account, a retirement account, and a crypto account all at the same time, each with its own login and balance.
What cryptocurrencies you can buy and how trading works
Fidelity Crypto currently offers Bitcoin and Ethereum as the primary trading options. Unlike some crypto exchanges that list hundreds or thousands of coins, Fidelity has chosen to focus on the two largest cryptocurrencies by market value. This limited selection reflects Fidelity's approach: they prioritize established assets with deep liquidity and lower volatility compared to smaller, newer coins.
When you buy crypto on Fidelity, you're purchasing fractional shares, meaning you don't have to buy a whole Bitcoin or Ethereum token. You can spend $50, $500, or any amount you choose, and you'll own a proportional piece of that cryptocurrency. The price updates in real time as you're placing your order, and you can set a limit order (buy at a specific price or lower) or a market order (buy at the current market price when ready).
Selling works the same way: you choose how much crypto you want to sell, set your order type, and execute the trade. Your proceeds are credited to your Fidelity Crypto account balance, and you can then transfer that money back to your bank account or to another Fidelity account.
Fees and costs associated with Fidelity Crypto
Fidelity charges a transaction fee each time you buy or sell cryptocurrency. The fee structure varies based on the size of your trade and market conditions, but Fidelity publishes its fee schedule on the Fidelity Crypto platform before you complete any trade. You'll see the exact fee amount displayed when you review your order before confirming it, so there are no hidden charges.
In addition to transaction fees, you may encounter a spread — the difference between the price Fidelity is willing to pay for crypto and the price it's willing to sell it for. This is how Fidelity makes money on crypto trading, similar to how traditional brokers handle currency exchange. The spread is built into the price you see when you're placing an order.
There is no monthly account fee for holding a Fidelity Crypto account, and you don't pay fees straightforward for keeping your Bitcoin or Ethereum there. You only pay when you trade. If you transfer crypto out of Fidelity to an external wallet, Fidelity may charge a withdrawal fee — check the current fee schedule on the platform for the exact amount.
How your crypto is stored and secured
When you buy crypto through Fidelity Crypto, Fidelity holds your digital assets in custody, meaning Fidelity stores and secures them on your behalf. You do not receive a private key or control the wallet directly. This is different from buying crypto on some other platforms where you can move your coins to a personal wallet that only you control.
Fidelity uses industry-standard security practices, including offline storage (called "cold storage") for the majority of customer crypto holdings. This means your Bitcoin and Ethereum are stored on servers that are not connected to the internet, which reduces the risk of hacking. Fidelity also maintains insurance coverage for customer crypto assets held in custody, though the coverage limits vary and you should review Fidelity's current insurance details on their website.
The trade-off of custody is convenience and security versus control. You cannot move your crypto to another wallet or exchange without selling it first and transferring the cash proceeds. However, you also don't have to worry about losing a private key or managing your own wallet security.
Fidelity Crypto versus other ways to buy cryptocurrency
Fidelity Crypto is one option among many for buying digital assets. Other popular platforms include Coinbase, Kraken, and Crypto.com, which typically offer a much wider selection of cryptocurrencies and lower fees on some trades. However, those platforms are crypto-specific and not regulated as traditional brokerages.
Some investors prefer Fidelity Crypto because they already have a Fidelity brokerage account and want to keep all their investments in one place. Others choose it for the regulatory oversight and insurance protections that come with a traditional brokerage firm. If you want to trade altcoins, participate in staking, or have more control over your private keys, a crypto-specific exchange may be a better fit.
You can also buy crypto indirectly through Fidelity's regular brokerage account by purchasing shares of Bitcoin or Ethereum spot ETFs (exchange-traded funds), which track the price of the underlying cryptocurrency without you owning the crypto directly. This route may appeal to investors who want crypto exposure but prefer not to use a separate trading platform.
Tax reporting and record-keeping for Fidelity Crypto trades
Every time you buy or sell cryptocurrency on Fidelity Crypto, that transaction is taxable and must be reported to the IRS. Fidelity generates a tax report for your account that you can read and use when filing your taxes. The report shows your purchase price, sale price, and gain or loss for each trade.
You are responsible for tracking your cost basis (the original price you paid) and calculating your capital gains or losses. If you hold crypto for less than one year before selling, any gain is taxed as short-term capital gain at your ordinary income tax rate. If you hold for more than one year, it's taxed as long-term capital gain at a lower rate (assuming you meet other requirements).
Keep records of all your trades, including the date, amount, price, and fees paid. Fidelity's tax report is a good starting point, but you should verify it matches your own records. If you're unsure how to report crypto transactions, consider consulting a tax professional who has experience with cryptocurrency.
Frequently Asked Questions
Can I transfer crypto I own elsewhere into my Fidelity Crypto account?
No, Fidelity Crypto does not currently accept incoming crypto transfers from external wallets or exchanges. You can only fund your account with U.S. dollars from a bank account or another Fidelity account. If you own crypto elsewhere and want to trade it on Fidelity, you would need to sell it on the original platform, transfer the cash to Fidelity, and then buy crypto through Fidelity Crypto.
What happens if Fidelity Crypto shuts down or goes out of business?
Fidelity is a large, established brokerage firm with decades of history, so the risk of closure is low. However, if Fidelity were to shut down Fidelity Crypto as a service, the company would be required to return customer assets. Your crypto would not be lost — Fidelity would either transfer it to another platform, allow you to withdraw it, or return the cash value to you.
Can I buy crypto through a Fidelity retirement account like an IRA?
Fidelity does not currently offer cryptocurrency trading within traditional IRAs or Roth IRAs through Fidelity Crypto. Your retirement accounts are limited to stocks, bonds, mutual funds, and ETFs. However, Fidelity does offer self-directed IRAs through a separate service, and some self-directed IRA platforms do allow crypto purchases — you would need to explore that option separately if you're interested in holding crypto in a retirement account.
Is there a minimum amount I have to deposit to open a Fidelity Crypto account?
Fidelity does not publicly state a minimum deposit requirement for opening a Fidelity Crypto account. However, individual trades may have minimums, and you should check the current requirements on the Fidelity Crypto platform when you're ready to open an account, as policies can change.
Can I set up automatic recurring purchases of crypto on Fidelity?
Fidelity Crypto does not currently offer automatic recurring purchases or a "dollar-cost averaging" feature where you buy a set amount of crypto on a regular schedule. You must manually place each buy order. Some other crypto platforms do offer this feature, so if automatic purchases are important to you, that may be a factor in choosing a different platform.