Fidelity Crypto: Buying Bitcoin for Beginners
Fidelity Crypto lets customers buy, sell, hold, and transfer Bitcoin. Users get to trade on Fidelity.com or the Fidelity Investments app, where millions of Americans already buy stocks and ETFs. The service is designed for those who want the security of a traditional finance company rather than a crypto-specific exchange.
Contents
What Is Fidelity Crypto?
Fidelity Crypto is a direct crypto trading and custody service provided by Fidelity Digital Assets.
The service lets customers buy and sell crypto next to stocks and ETFs without having an account with a crypto exchange.
The following crypto assets are supported:
- Bitcoin
- Ethereum
- Litecoin
- Solana
- Fidelity Digital Dollar
All can be stored in Fidelity brokerage accounts and transferred via the Fidelity Crypto app to an external wallet.
Read more: Why Fidelity Is So Important in Crypto: How the Wall Street Giant Helped Bitcoin Go Mainstream
Fidelity Crypto vs a Regular Brokerage Account
A regular brokerage account lets you buy funds, stocks, bonds, and ETFs. A Fidelity Crypto account, on the other hand, lets you buy actual crypto instead of funds that track its performance.
| Feature | Fidelity Crypto | Brokerage account |
|---|---|---|
| Main assets | BTC▲$62,630.00, ETH▲$1,761.17, LTC▲$44.99, SOL▲$82.41 and FIDD | Stocks, ETFs, bonds and funds |
| Direct Bitcoin ownership | Yes | No |
| Transfers to external wallets | Supported for eligible assets | No |
| SIPC protection for crypto | No | Not applicable |
| Funding source | Linked Fidelity brokerage account | Bank transfer or eligible sources |
| Trading availability | Continuous crypto market | Securities market hours |
Who Can Open a Fidelity Crypto Account?
Anyone can open a Fidelity Crypto account free of charge if they meet certain requirements:
- You must be a U.S. citizen or resident
- You must be 18 years of age or older
- You must reside in a state that permits Fidelity Digital Assets to serve retail customers
- You must have an eligible Fidelity brokerage account or open it at the time of account opening
Availability is subject to state and can change over time.
Fidelity will evaluate your eligibility when you try to open a crypto account. There is no minimum account balance, and you can fund the account with as little as $1.
How to Open a Fidelity Crypto Account
The account-opening process is designed to be quick and simple and should take no more than several minutes.
Step 1: Log In or Create a Fidelity Account
If you are a Fidelity customer, you can log in to the website or app.
If not, you will need to create a Fidelity profile and provide personal information, including:
- Your legal name
- Your address
- Your date of birth
- Citizenship
- Your social security number
- Your employment information
Step 2: Choose Fidelity Crypto
When you reach the account-opening page, choose Fidelity Crypto as the type of account you want to open. Note that Fidelity uses a two-account structure, so you will need to designate a brokerage account that will fund your crypto trades.
You can link an existing brokerage account or open a new one during the account-opening process.
Step 3: Choose the Ownership
Depending on your eligibility, you will be able to choose between an individual and joint ownership.
Review the account agreements and crypto disclosures carefully, as cryptocurrency is not covered by the FDIC or SIPC, and you can potentially lose your investment.
Step 4: Complete Identity Verification
You may need to verify your identity, address, tax details, and eligibility to open a crypto account with Fidelity. Once you complete all these steps, you should see your Fidelity Crypto account alongside your other Fidelity accounts.
Related: Borrow Against Your Altcoins: Top 3 Crypto Loan Platforms in the US
How to Fund Fidelity Crypto
You can only fund Fidelity Crypto from eligible sources, including a linked brokerage account. You cannot transfer money from an external bank account to your crypto account directly.
Funding From an External Bank
- Launch the Fidelity app.
- Select Transact.
- Choose Transfer.
- Select the external bank as the source of funds.
- Choose the brokerage account as the destination.
- Specify the amount you want to transfer.
- Review the transaction and send it.
- Once the money is transferred to the brokerage account, move it to the crypto account.
Funding From a Fidelity Account
If you already have eligible cash in a Fidelity account:
- Select Transact.
- Choose Transfer.
- Designate the brokerage account as the source of funds and the crypto account as the destination.
- Specify the amount, review the transaction, and send it.
Fidelity only lets you transfer eligible, settled cash to a crypto account. If you make a recent deposit or sell securities, you may need to wait before funding your crypto account.
How to Buy Bitcoin With Fidelity Crypto
Once you have funded your Fidelity Crypto account, you are ready to buy Bitcoin.
Step 1: Open a Trade Ticket
Log in to the crypto account and choose the trade or buy option.
Step 2: Choose Bitcoin
Select Bitcoin or search for BTC.
Review the following:
- Reference price
- Price movements
- Cash on hand
- Estimated BTC amount
- Trading fee
The reference price serves only as a guide, as Bitcoin prices change constantly.
Step 3: Enter the Amount
You can buy fractional Bitcoin, so enter the amount of money you want to spend on the crypto purchase.
The minimum crypto trade is $1, but it is better to start with a slightly bigger amount to get a reasonable understanding of how the interface works and what fees you will pay.
Step 4: Review Your Order
Make sure the following details are correct:
- Asset
- Amount in USD
- Estimated BTC amount
- Fee
- Estimated execution price
- Total
Step 5: Submit Your Order
Click or tap the button to buy Bitcoin. Once the trade settles, you should see BTC in your crypto account positions.
It is important to note that Bitcoin trades 23 hours a day (with a technical break between midnight and 1 a.m. ET), and the price you see on the screen may not match the execution price, especially during market volatility.
Fidelity Crypto Fees
Fidelity promises to have no account-opening, maintenance, or crypto custody fee for crypto IRAs. However, crypto IRAs incur a 1% fee on purchases and sales, and taxable accounts’ fees are specified in each trade’s live preview.
| Cost | What beginners should know |
|---|---|
| Account opening | No stated minimum balance |
| Minimum crypto trade | $1 |
| Buy or sell fee | Check the live preview; crypto IRAs list 1% |
| Crypto custody | No separate IRA custody fee |
| Blockchain withdrawal | Network fee may apply |
| Bank transfer | Depends on transfer method and bank |
For example, a 1% fee on a $100 Bitcoin purchase is worth $1. That means frequent, small-volume trades can add up significantly.
Read More: Best Robinhood Chain Launchpads in 2026: Top Platforms to Launch Your Token Before Everyone Else
How to Sell Bitcoin on Fidelity
Selling Bitcoin works similarly to buying it. Launch the Fidelity Crypto app, select Bitcoin, choose the sell option, and enter the amount you want to sell. Review the anticipated proceeds and the applicable fee, and submit your sell order. After the sale, the cash will still be in your crypto account, so you may want to transfer it to your brokerage account and then move it to your bank account or spend it on eligible purchases.
Note that selling Bitcoin may create a taxable crypto event depending on the value of proceeds and your cost basis.
Can You Transfer Bitcoin to and From Fidelity?
Yes, Fidelity supports eligible Bitcoin deposits and withdrawals via the Bitcoin network.
Depositing Bitcoin
- Open the crypto account and choose the Transfer crypto or Receive option.
- Select Bitcoin.
- Copy the deposit address.
- Double-check that the sending platform uses the Bitcoin network.
- Send a small amount of Bitcoin to test the deposit address.
- Wait for the transfer to clear on the blockchain.
Never send other assets or use an incompatible network. It is essential to remember that blockchain transactions are generally irreversible.
Withdrawing Bitcoin
- Open the crypto account and select Bitcoin.
- Select Send.
- Enter or scan the destination address.
- Double-check the address to ensure there are no typos.
- Enter the amount you want to withdraw.
- Review the network fee.
- Approve the transfer.
Depending on the traffic on the blockchain, Bitcoin withdrawals usually take longer to process than deposits. Fidelity Crypto also supports other eligible transfers to Fidelity customers.
How Does Fidelity Store Bitcoin?
Fidelity Digital Assets uses an omnibus custody model, meaning that the company holds crypto in institutional-level accounts on behalf of its customers. In other words, customer funds are not stored in separate blockchain wallets but in Fidelity’s institutional accounts.
The company keeps most of its crypto assets offline in guarded facilities with physical security. At the same time, Fidelity Crypto custody is custodial, meaning that the company holds private keys to customers’ funds.
It is always a good idea to move your funds to a self-custody wallet if you want full control over your private keys.
Fidelity Crypto IRA
Fidelity lets you open a Roth, traditional, or rollover crypto IRA and buy crypto with your IRA funds. Note that a brokerage IRA is required to fund a crypto IRA.
| Account | Potential tax treatment |
|---|---|
| Roth Crypto IRA | Qualified growth and withdrawals may be tax-free |
| Traditional Crypto IRA | Potential tax-deferred growth |
| Rollover Crypto IRA | Potential tax-deferred growth from eligible rollovers |
A crypto IRA lets you buy Bitcoin, Ethereum, Litecoin, and Solana (subject to your state of residence). A crypto IRA is not available in California and Oregon, for now.
Fidelity Crypto vs Crypto Exchanges
| Feature | Fidelity Crypto | Typical crypto exchange |
|---|---|---|
| Beginner-friendly interface | Strong | Varies |
| Integration with stocks and ETFs | Yes | Usually no |
| Cryptocurrencies offered | Limited | Often hundreds |
| External transfers | Yes | Usually yes |
| Advanced trading tools | Limited | Often extensive |
| Staking and DeFi access | Limited | Sometimes available |
| Institutional brand recognition | Strong | Varies |
| Minimum trade | $1 | Varies |
Fidelity Crypto is a great option for those who want to buy and sell Bitcoin with institutional-level custody and keep their crypto and stocks on the same platform.
In contrast, typical crypto exchanges offer a broader range of crypto assets and more advanced trading features than Fidelity Crypto. They also tend to have better liquidity, order types, staking, and DeFi options.
If you are a crypto beginner, it is probably safer to stick to Fidelity Crypto. However, if you want more options, you might consider a crypto exchange.
Fidelity Crypto Safety Tips
- Enable multifactor authentication
- Never share your verification codes
- Use unique and strong passwords
- Always double-check withdrawal addresses
- Send a small Bitcoin transfer to a new address to check it
- Avoid clicking on suspicious links in emails or SMS
- Keep track of your crypto transactions for tax purposes
- Do not invest more than you can afford to lose
- Remember that crypto is not insured or protected in any way
Is Fidelity Crypto Right for Beginners?
Fidelity Crypto is a smart option for beginners who want to learn how to buy Bitcoin while keeping their crypto and stocks at the same financial institution.
| Pros | Cons |
|---|---|
| Familiar Fidelity app | Limited cryptocurrency selection |
| Direct crypto ownership | Higher trading fees than some exchanges |
| Eligible external transfers | Crypto is not FDIC- or SIPC-protected |
| Integrated brokerage funding | Fewer advanced tools |
| Continuous crypto trading | State-specific eligibility |
| Institutional custody | Fidelity controls the private keys |
The best way to start with Fidelity Crypto is to make a small purchase of Bitcoin and get comfortable with the interface. Remember that you should never make emotional decisions when it comes to crypto trading.
FAQ
Can I buy Bitcoin directly through Fidelity?
Yes, Fidelity Crypto lets eligible customers buy actual Bitcoin.
What is the minimum Bitcoin purchase on Fidelity Crypto?
There is no stated account minimum, but the minimum crypto trade is $1.
Can I move Bitcoin from Fidelity to my own wallet?
Yes, eligible customers can transfer supported Bitcoin to an external wallet.
Does Fidelity Crypto charge fees?
Crypto IRAs incur a 1% purchase and sale fee, but there is no account-opening, maintenance, or crypto custody fee. Always check the fee preview when making a trade, as fees in taxable accounts vary per transaction.
Is Bitcoin in Fidelity Crypto insured?
No, cryptocurrency is not eligible for FDIC, SIPC, or any other form of insurance.
