Fidelity Investments: Buying Bitcoin And Crypto Simplified

Yes, you can buy Bitcoin through Fidelity Crypto®, a dedicated platform that allows you to trade cryptocurrencies like Bitcoin and Ethereum. This platform is offered by Fidelity Digital Assets, a branch of Fidelity that was launched in 2018 to help institutional customers access the cryptocurrency market.

Fidelity Crypto® is available to US citizens over the age of 18 who reside in eligible states. You can start investing with as little as $1, and there is no minimum deposit to open a crypto trading account. However, it is important to note that crypto is a highly volatile asset class and is not suitable for everyone.

Fidelity's history with Bitcoin

Fidelity Investments' history with Bitcoin began in 2014 when it started researching Bitcoin and blockchain technology. In 2015, Bitcoin's price hovered between $230 and $280, sputtering to a start. By October, the price had risen over $300, and more people became interested in the proposition of a digital asset's increasing value. This interest led to the creation of Fidelity Digital Assets in 2018, a dedicated business for this innovative asset class.

Fidelity Digital Assets is a limited liability corporation designed to serve institutional customers and allow them access to the growing cryptocurrency investing environment. It offers offline cold storage custody solutions, trade execution, and other services. With this new branch, Fidelity entered the digital currency game and aimed to help provide financial institutions with full-service digital asset investments.

Fidelity's products are geared towards institutional and accredited investors, and it offers various ways to invest in Bitcoin and other cryptocurrencies. In April 2022, Fidelity became the first brokerage to offer exposure to cryptocurrency in retirement accounts. Additionally, Fidelity manages the Fidelity Wise Origin Bitcoin Fund, an ETF approved by the SEC in January 2024.

Fidelity has been an innovator in the crypto space since 2014, and its experience and brand name give customers a level of comfort when entering the risky and volatile crypto market.

Fidelity Crypto accounts

Fidelity Crypto® is a service offered by Fidelity Digital Assets, a branch of Fidelity, which allows customers to trade cryptocurrencies such as Bitcoin and Ethereum. The service is available to US citizens over the age of 18 who reside in a state where Fidelity Digital Assets serves customers.

Fidelity Crypto® accounts allow users to buy and sell cryptocurrencies with a minimum investment of $1. The service is integrated into the Fidelity mobile app, allowing users to manage their traditional and crypto investments in one place. It is important to note that users cannot transfer cryptocurrencies out of their Fidelity accounts to external crypto wallets.

Fidelity also offers other investment options related to cryptocurrencies, such as crypto exchange-traded funds (ETFs) and crypto-related stocks. These options provide indirect exposure to the crypto industry and may be suitable for investors who prefer a more diversified approach.

It is worth noting that investing in cryptocurrencies carries a high level of risk due to the volatile nature of the market. Before investing, individuals should carefully consider their risk tolerance and conduct thorough research.

Buying Bitcoin through Fidelity

Fidelity is a well-known brokerage that offers investing products to investors of all types. Its Digital Assets branch offers many ways to become involved in the cryptocurrency and digital assets spaces, and the investment firm now offers a Bitcoin spot ETF as of January 2024.

How to Buy Bitcoin through Fidelity

To buy Bitcoin through Fidelity, you will need to open a Fidelity Crypto® account. This can be done in just minutes. At the same time, you will also need to open an eligible Fidelity brokerage account to fund your new crypto account. You can then tell Fidelity how much crypto you want to buy or sell as a market or limit order.

Benefits of Buying Bitcoin through Fidelity

Fidelity offers a breakthrough way to trade crypto like bitcoin and ethereum in the same place where you trade stocks. With Fidelity Crypto®, you can trade and secure crypto like bitcoin and ethereum for as little as $1. You'll get institution-level security and services that Fidelity Digital Assets℠ has offered since 2018.

Fidelity also provides cryptocurrency educational material to help investors become informed and make decisions about using crypto as an asset class. This is particularly useful for investors who are curious about cryptocurrency and already know and trust Fidelity with their investments.

Drawbacks of Buying Bitcoin through Fidelity

Fidelity Crypto is not available in all states. It is also not available for non-US citizens. Additionally, users cannot send or receive cryptocurrency from their accounts, which is a must for users who want to use crypto for payments or to access blockchain-based services on the web.

Another drawback is that Fidelity offers only two cryptocurrencies: Bitcoin and Ethereum. Crypto traders often look at more options when they are buying and selling. Crypto.com, for example, has more than 300 cryptocurrencies for sale.

Risks of Buying Bitcoin

It is important to remember that crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Crypto is also highly volatile and can become illiquid at any time. It is therefore for investors with a high-risk tolerance.

Fidelity's first stab at a consumer crypto product isn't the most robust on the market, but the firm's brand name and track record may give some customers a level of comfort when moving into a new and risky asset class like crypto.

Fidelity's Digital Assets branch

Fidelity Digital Assets is a limited liability corporation and a branch of Fidelity, one of the largest asset managers and brokerages in the U.S. The Digital Assets branch was launched in 2018 to serve institutional customers and allow them access to the growing cryptocurrency investing environment.

Services

Fidelity Digital Assets offers a range of services, including offline cold storage custody solutions, trade execution, and other services. The branch also provides educational material geared towards institutional clients to help them become informed and make decisions about using crypto as an asset class.

Crypto Trading

Fidelity offers crypto trading through its Fidelity Crypto accounts, where users can buy and sell bitcoin and ether with a minimum investment of $1. Crypto trading is available 7 days a week, 23 hours a day, on the website and mobile app.

Crypto Funds

Fidelity manages the Fidelity Wise Origin Bitcoin Fund, an ETF that was approved by the SEC in January 2024. The fund invests in bitcoin and ether, and it is available on the Toronto Stock Exchange but not yet offered to U.S. investors.

Metaverse ETF

Fidelity also offers a Metaverse ETF that holds the issues of companies involved in the metaverse, such as Samsung, Microsoft, Adobe, Meta, Tencent, and Google.

Crypto-Enhanced 401(k)s

In April 2022, Fidelity announced that it was pioneering crypto-enhanced 401(k)s, which offer exposure to Bitcoin. These retirement accounts provide institutional-level security and liquidity for employees and employers who are interested.

Custodianship and Clearing and Settlement Services

Fidelity Digital Assets has developed custodianship and clearing and settlement services for institutional customers, placing assets in cold storage and settling transactions with periodical payments.

Crypto ETFs

Fidelity offers exchange-traded funds that offer exposure to companies involved in the cryptocurrency and digital payments spaces, such as Coinbase, Riot, Marathon Digital Holdings, and Galaxy Digital Holdings.

Crypto-Related ETFs

In addition to its crypto funds and ETFs, Fidelity also allows investors to gain exposure to the crypto industry through crypto-related ETFs. These ETFs provide exposure to a diversified basket of cryptocurrency stocks or the futures of specific cryptocurrencies or a basket of cryptocurrencies.

Crypto Stocks

Another way to invest in crypto through Fidelity is by buying individual stocks of companies in the crypto industry, such as crypto exchanges, bitcoin mining companies, and banks that provide solutions for crypto companies.

Pros and Cons of Fidelity Crypto

Some advantages of using Fidelity for crypto include its low trading costs, the convenience of having all your investments in one place, and the security and support provided by a major financial services firm. However, there are also some limitations to consider. For example, users cannot send or receive cryptocurrency from their accounts, and there are currently only two cryptocurrencies available: Bitcoin and Ethereum. Additionally, Fidelity Crypto is not available in all states and does not offer 24/7 trading.

Pros and cons of buying Bitcoin through Fidelity

Fidelity is a well-known name in the world of investments, and with the emergence of cryptocurrencies, it has become possible to buy Bitcoin through the company. Here is a detailed look at the pros and cons of buying Bitcoin through Fidelity.

Pros:

• Simplicity and Accessibility: Fidelity's platform offers a simple entry point for those new to crypto, particularly those who already have a brokerage or cash management account with the company. You can move money from your existing Fidelity accounts into your crypto account with ease.
• Low Trading Costs: Fidelity's trading costs are competitive with other leading crypto exchanges, with no account fees and a minimum crypto purchase of just $1.
• Education and Support: Fidelity provides a range of educational resources, including articles, webinars, and a monthly newsletter, to help investors make informed decisions about crypto. The company also offers 24/7 virtual assistance and has expertise in security and reliable support.
• Trust and Experience: Fidelity has been an innovator in crypto since 2014, giving it a level of experience that may inspire trust. The company has around 40 million individual clients, and its brand name may provide a level of comfort for those venturing into the risky world of crypto.

Cons:

• Limited Crypto Offerings: Fidelity currently only offers two cryptocurrencies: Bitcoin and Ethereum. This is a very limited selection compared to other crypto platforms and exchanges, which may be a significant drawback for more experienced crypto investors.
• No Crypto Transfers: While you can sell crypto for fiat money, you cannot transfer cryptocurrency out of your Fidelity account or to an external crypto wallet. This limits your ability to use crypto for payments or access blockchain-based services.
• Limited Availability: Fidelity Crypto is not available in all states, so you may need to choose another platform if you cannot access it in your state.
• Functionality: While Fidelity offers competitive trading costs, its platform lacks some of the advanced features available on competing exchanges, such as staking and round-the-clock crypto transactions.
• Volatility: Like all cryptocurrencies, Bitcoin is highly volatile and susceptible to market manipulation. It may not be suitable for investors who are risk-averse.

Frequently asked questions