Fidelity Crypto is a secure and beginner-friendly cryptocurrency platform launched by Fidelity Investments, one of the world’s most trusted financial institutions.
Designed for both new and experienced investors, Fidelity Crypto offers access to top digital assets like Bitcoin, Ethereum, and Litecoin with institutional-grade security and seamless integration into existing Fidelity accounts.
In this guide, we’ll explore what Fidelity Crypto is, how it works, and why it’s becoming a go-to choice for investors seeking safe exposure to the crypto market.
Fidelity Crypto: A Trusted Name Steps In
Founded in 1946, Fidelity Investments has grown into a global financial powerhouse, managing over $5.8 trillion in discretionary assets as of 2024.
Recognizing growing institutional interest in Bitcoin, Fidelity launched Fidelity Digital Assets in 2018, pioneering crypto custody for large clients.
In 2021, they introduced Fidelity Crypto, bringing crypto trading capabilities to individual investors. The company’s entry into crypto reflects its commitment to innovation while leveraging its strong reputation and regulatory compliance.
Who Can Use Fidelity Crypto?
Fidelity Crypto isn’t available universally yet, it operates in about 37 U.S. states, expanding gradually. There’s no minimum deposit, and users can begin buying digital assets with just $1.
Although select clientele need to open a Fidelity brokerage account first, current customers can easily access the crypto platform and manage everything through one dashboard.
Limited Asset Selection of Fidelity Crypto
Unlike comprehensive exchanges that offer hundreds of tokens, Fidelity Crypto currently supports just three assets:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
These choices focus on stability and market prominence, appealing mainly to conservative or long-term investors.
Fidelity has expressed its intent to add more assets, but exclusive coverage of these three means it’s less appealing to users seeking access to altcoins or DeFi opportunities.
Institutional-Grade Security
Security is the cornerstone of Fidelity Crypto’s offering. Here’s how they safeguard your digital assets:
a) Omnibus Cold & Hot Storage
Fidelity employs a secure omnibus model combining cold (offline) and hot (online) wallets. Most funds are stored offline in highly secure, shielded vaults, with backups and 24/7 monitoring.
b) Resilient Infrastructure
Security extends to multi-site redundancy, multi-person approval protocols, and multi-layered strategies that eliminate single points of failure.
c) Custody Transparency
Digital assets are not rehypothecated—meaning they aren’t lent out or used by Fidelity. Additionally, Fidelity handles custody in-house rather than through third-party services.
d) Privacy Safeguards
While blockchain transactions are public, Fidelity ensures your individual holdings and transfers remain off-chain for enhanced privacy.
e) Audits & Regulation
Fidelity Digital Assets holds SOC 1 and SOC 2 Type 2 certifications, possesses a New York State Trust Charter, and is regulated by the UK’s Financial Conduct Authority for crypto activity.
Ease of Use & Integrated Experience
Fidelity Crypto integrates directly into the main Fidelity platform, so you can manage stocks, ETFs, and crypto in one place.
The platform is user-friendly, with identity verification and no requirement to connect external crypto wallets. You also gain access to educational resources, webinars, podcasts, and market insights.
Pricing: Spread Without Commission
Fidelity Crypto markets its trading as commission-free, but it applies a spread of up to 1 percent over market price. Essentially, this means you buy slightly above and sell slightly below to cover costs.
While often competitive with other brokers, users desiring low-spread trading may find this drawback significant.
Trading Limitations
While Fidelity Crypto offers convenient trading, there are some functional limitations:
- Trading Hours: Available 23 hours a day, normally from 1 a.m. to midnight Eastern Time
- No Transfers In/Out: As of now, you cannot withdraw crypto to an external wallet. Fidelity has added this capability to its roadmap but without a timeline.
- Limited Order Types: Only market and daily limit orders are supported, no Good-Til-Canceled (GTC) orders
These factors may limit flexibility for seasoned crypto users who require full custody and transfer capabilities.
Pros and Cons of Fidelity Crypto
Pros of Fidelity Crypto:
- Backed by a trusted, regulated firm
- Institutional-grade custody and security
- Integrated experience with existing Fidelity accounts
- No external wallet needed
- Educational resources included
Cons of Fidelity Crypto:
- Limited asset selection (BTC, ETH, LTC)
- One percent spread may add cost
- No external transfers or advanced features (e.g., staking)
- Trading hours exclude one hour per day
- State restrictions limit availability
Who Is It For Fidelity Crypto?
Fidelity Crypto is ideal for:
- Existing Fidelity clients wanting simple crypto exposure
- Long-term investors in Bitcoin, Ethereum, or Litecoin
- Users who value security and regulatory oversight
It’s less suited for:
- Traders seeking altcoins, DeFi, or staking options
- Users needing wallet custody or cross-chain transfers
- Professionals wanting advanced order types and continuous access
Industry and Community Response
Trusted sources and crypto communities generally view Fidelity Crypto as a secure and reliable entry point into digital assets. It’s praised for institutional-grade security and integration with traditional investments.
However, feedback often highlights limitations like a narrow asset range, a fixed 1 percent spread, and the inability to transfer coins to external wallets.
Conclusion
Fidelity Crypto is a strong option for those seeking a secure, regulated, and integrated way to get started with crypto.
It leverages Fidelity’s experience, applies institutional-grade security, and fits neatly into a traditional investor’s workflow.
However, its current limitations, limited asset selection, 1 percent spread, lack of wallet transfers, and truncated trading hours may deter advanced crypto users.
If your crypto needs are simple, such as holding Bitcoin or Ethereum within a familiar investment ecosystem, Fidelity Crypto offers a compelling choice.
But if you’re exploring altcoins, DeFi, or full custody control, you may need a more specialized platform.