Yes, Fidelity lets you buy and hold certain cryptocurrencies, but not all of them
Fidelity offers cryptocurrency trading through Fidelity Crypto, a separate platform within your Fidelity account. You can buy Bitcoin and Ethereum directly. The service is available to US residents with a Fidelity brokerage account, and you trade during market hours — crypto markets don't close, but Fidelity's trading window has set times.
Fidelity does not offer altcoins, meme coins, or tokens beyond Bitcoin and Ethereum. If you want to trade other cryptocurrencies, you would need to use a different exchange. Fidelity's offering is intentionally narrow, which means lower fees for the coins they do support but no access to the broader crypto market.
You cannot buy crypto through a Fidelity retirement account like an IRA or 401(k). Crypto purchases are only available in taxable brokerage accounts. This matters because it affects how gains are taxed and whether you can defer taxes on the growth.
Key Takeaways
- Fidelity Crypto lets you buy Bitcoin and Ethereum only, not other cryptocurrencies or tokens.
- You need an existing Fidelity brokerage account to access Fidelity Crypto; it is not a standalone service.
- Crypto purchases are only available in taxable accounts, not in IRAs, 401(k)s, or other retirement accounts.
- Fidelity charges a flat fee per transaction rather than a percentage of the trade, which can be cheaper for large purchases.
- You can hold your crypto in Fidelity's custody or transfer it to a self-custody wallet, though transfers out incur a fee.
How to set up crypto trading on your Fidelity account
Start by logging into your Fidelity brokerage account online or through the mobile app. Look for the Crypto section in the main menu — it may be labeled "Crypto" or "Digital Assets" depending on your app version. Click to open Fidelity Crypto.
You will be asked to review and accept the Fidelity Crypto User Agreement. This document outlines the terms of service, including fees, custody rules, and what happens if Fidelity's service goes down. Read it before accepting, because once you agree, you are bound by those terms.
After you accept the agreement, you can fund your account by transferring money from your existing Fidelity cash account. The transfer is usually when ready. You then place an order for Bitcoin or Ethereum the same way you would buy a stock — enter the amount in dollars or the quantity in coins, review the price, and confirm.
Fees and pricing for buying crypto at Fidelity
Fidelity charges a flat fee per transaction, not a percentage of the trade. As of the most recent update, the fee is $0 for most customers on Bitcoin and Ethereum purchases, though this can change. Check your account settings or call Fidelity to confirm the current fee structure, because promotional pricing sometimes expires.
The price you see when you place an order includes Fidelity's spread — the difference between what Fidelity pays for the coin and what it charges you. This spread is how Fidelity makes money when the transaction fee is zero. The spread varies based on market conditions and the size of your order.
If you transfer your crypto out of Fidelity to a personal wallet, Fidelity charges a withdrawal fee. This fee covers the cost of the blockchain transaction that moves your coins. The amount depends on network congestion at the time of withdrawal and is shown to you before you confirm the transfer.
Custody and security of your crypto at Fidelity
When you buy crypto through Fidelity Crypto, Fidelity holds the coins in its own custody. You do not own the private keys — Fidelity does. This means you cannot access your coins outside of Fidelity's platform unless you transfer them out to a self-custody wallet.
Fidelity insures crypto held in its custody against theft and hacking through a combination of insurance policies and cold storage (offline vaults). The insurance does not cover losses from your own account being compromised — for example, if someone gains access to your Fidelity login and sells your coins. Protect your Fidelity password and enable two-factor authentication to reduce this risk.
You can transfer your Bitcoin or Ethereum to a personal wallet at any time. You provide a wallet address, confirm the withdrawal, and Fidelity sends the coins to that address on the blockchain. Once the transfer is complete, Fidelity no longer holds or insures those coins — you are responsible for securing your wallet.
Tax reporting for crypto purchases at Fidelity
When you sell crypto or exchange one coin for another, you trigger a taxable event. Fidelity reports these transactions to the IRS on Form 8949 (Sales of Capital Assets) and sends you a copy for your tax return. You are responsible for reporting all crypto transactions, including transfers between wallets, even if Fidelity does not report them.
Gains on crypto held for less than one year are taxed as short-term capital gains at your ordinary income tax rate. Gains on crypto held for more than one year are taxed as long-term capital gains at a lower rate (0%, 15%, or 20% depending on your income). Losses can offset gains and up to $3,000 of ordinary income per year.
Keep records of every purchase, sale, and transfer, including the date, amount, price, and any fees paid. This information is needed to calculate your cost basis and gains or losses. Fidelity provides transaction history in your account, but you should also keep your own records in case you need to reference them later.
Alternatives if you want to trade other cryptocurrencies
If you want to buy coins beyond Bitcoin and Ethereum, you will need to use a different exchange. Coinbase, Kraken, and Gemini are regulated US exchanges that offer a wider range of cryptocurrencies. Each has different fee structures, security features, and user interfaces, so compare them based on which coins you want to trade and how often you plan to trade.
Some people use both Fidelity and another exchange — keeping Bitcoin and Ethereum at Fidelity for simplicity and holding altcoins elsewhere. This approach requires managing multiple accounts and tracking transactions across platforms for tax purposes, which adds complexity.
If you are interested in crypto exposure without buying the coins directly, Fidelity also offers Bitcoin and Ethereum spot ETFs (exchange-traded funds). These trade like stocks in your brokerage account and hold the actual coins in custody. This option avoids the need to set up Fidelity Crypto and may be simpler if you prefer traditional investment account structures.
Frequently Asked Questions
Can I buy crypto in my Fidelity IRA or 401(k)?
No. Fidelity Crypto is only available in taxable brokerage accounts. Retirement accounts have restrictions on what you can hold, and cryptocurrency does not meet those rules at Fidelity. Some alternative custodians offer crypto IRAs, but they are specialized providers, not Fidelity.
What happens to my crypto if Fidelity goes out of business?
Your crypto is held in Fidelity's custody and is insured against theft and hacking. If Fidelity were to fail, your coins would be returned to you or transferred to another custodian as part of the bankruptcy process. Fidelity is a large, regulated broker, so this risk is low, but it is not zero.
Can I transfer crypto from another exchange into Fidelity?
You can transfer Bitcoin and Ethereum from another wallet or exchange into your Fidelity Crypto account by providing Fidelity with a deposit address. Fidelity will generate a unique address for you, and you initiate the transfer from the other platform. The transfer takes time depending on blockchain confirmation, usually 10 minutes to a few hours.
Do I have to buy whole coins, or can I buy fractional amounts?
You can buy fractional amounts of Bitcoin and Ethereum at Fidelity. You can enter a dollar amount instead of a coin quantity, and Fidelity will give you the corresponding fraction. This makes it possible to invest smaller amounts without waiting to save enough for a whole coin.
Is there a minimum amount I have to invest in crypto at Fidelity?
Fidelity does not publish a formal minimum for crypto purchases, but practical minimums exist because of transaction fees and spreads. Check your account or contact Fidelity to confirm the current minimum order size, as it may vary by coin and market conditions.