Introduction
The rise of cryptocurrencies has revolutionized the financial world. Once considered a niche market, digital assets like Bitcoin, Ethereum, and others have entered the mainstream. As demand grows, traditional investment platforms are expanding their services to include cryptocurrencies. Fidelity Investments, one of the world’s largest financial services providers, has made significant strides in accommodating crypto assets for retail and institutional investors.
If you’re considering entering the crypto market through Fidelity, this comprehensive guide will walk you through the entire process. We’ll explore the steps, tools, requirements, risks, and advantages of buying crypto using Fidelity in 2025.
1. Overview of Fidelity’s Crypto Services
. Fidelity Digital Assets
Fidelity Digital Assets is the company’s dedicated platform for cryptocurrency services. Initially launched for institutional clients, it now offers retail investors access to a select number of cryptocurrencies.
. Supported Cryptocurrencies
As of 2025, Fidelity supports the direct purchase and custody of the following cryptocurrencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
The list may expand as the platform continues to evolve.
. Key Features
- Institutional-grade custody
- Real-time trading access
- Tax reporting integration
- Seamless interface with traditional investment portfolios
2. Setting Up a Fidelity Account
Before you can buy crypto with Fidelity, you need to have an active account.
. Creating a Fidelity Account
- Visit the Fidelity website (https://www.fidelity.com)
- Click on “Open an Account”
- Choose the appropriate account type (e.g., brokerage account)
- Provide your personal details (name, address, SSN, employment info)
- Link a bank account for funding
- Submit your application
. Account Verification
Fidelity will verify your identity and bank account. This process typically takes 1-3 business days. You may be asked to provide:
- Government-issued ID
- Bank statements
- Proof of address
3. Enabling Crypto Trading on Fidelity
. Accessing Fidelity Crypto
Once your account is set up:
- Log into your Fidelity account
- Navigate to the Crypto section under “Accounts & Trade”
- Select “Get Started with Crypto”
- Agree to the terms and disclosures
. Eligibility Criteria
To buy crypto on Fidelity, you must:
- Be 18 years or older
- Be a U.S. resident
- Have a funded Fidelity brokerage account
. Funding Your Account
Transfer funds from your bank account to your Fidelity brokerage account. This can be done via ACH or wire transfer.
4. How to Buy Crypto with Fidelity
. Placing a Trade
Once you’re set up and have funds available:
- Go to the Crypto Trading section
- Choose the cryptocurrency you wish to buy (e.g., Bitcoin)
- Enter the amount in USD or select the number of crypto units
- Review real-time price and transaction fee
- Click “Preview Order”
- Confirm and place your order
. Order Execution
Fidelity uses a proprietary trading platform that aggregates prices from multiple sources to ensure best execution. Most trades settle within minutes.
5. Managing Your Crypto Holdings
. Viewing Your Portfolio
You can monitor your crypto assets alongside stocks, ETFs, and mutual funds within the Fidelity dashboard.
. Performance Tracking
Fidelity provides tools to:
- Track price movements
- Analyze historical performance
- View profit/loss over time
. Secure Custody
Fidelity Digital Assets offers institutional-grade cold storage for digital assets, protecting them from hacks and cyber threats.
6. Fees and Costs
. Trading Fees
Fidelity charges a transparent transaction fee when buying or selling crypto. As of 2025:
- Trading Fee: 0.75% per transaction
- No account maintenance or custody fees
. Spread Costs
In addition to fees, there may be a small spread between the buy and sell price of the cryptocurrency.
7. Tax Considerations
. Reporting Gains and Losses
Cryptocurrencies are treated as property by the IRS. Fidelity offers tools to help you:
- Track cost basis
- Generate Form 1099-B
- Integrate with tax software
. Crypto Tax Tips
- Keep detailed records of all trades
- Report both gains and losses
- Consider long-term holding for lower capital gains tax
8. Fidelity vs Other Platforms
| Feature | Fidelity | Coinbase | Robinhood |
|---|---|---|---|
| Direct Crypto Purchase | Yes | Yes | Yes |
| Cold Storage Custody | Yes | Partial | No |
| Tax Reporting Tools | Yes | Yes | Limited |
| Fees | 0.75% | 1.49% avg | No direct fee, higher spread |
| Integration with Traditional Portfolio | Yes | No | Yes |
Fidelity stands out for its security, tax tools, and seamless integration with traditional investments.
9. Security and Compliance
. Security Protocols
Fidelity uses state-of-the-art security measures:
- Cold storage for crypto assets
- Multi-factor authentication
- Encrypted data transmissions
. Regulatory Compliance
Fidelity complies with:
- SEC regulations
- FINRA guidelines
- Anti-Money Laundering (AML) and Know Your Customer (KYC) policies
10. Pros and Cons of Buying Crypto on Fidelity
Pros
- Trusted financial institution
- Integrated investment portfolio
- Strong security and custody
- Tax documentation support
Cons
- Limited crypto selection (as of 2025)
- U.S. residents only
- No advanced trading features (e.g., margin, staking)
11. Frequently Asked Questions (FAQs)
Q1: Can I transfer crypto from another wallet to Fidelity?
Currently, Fidelity does not support incoming or outgoing crypto transfers.
Q2: Is there a minimum investment?
Yes, the minimum order is typically $10 per transaction.
Q3: Does Fidelity offer staking?
No, staking services are not yet available on Fidelity.
Q4: Can I hold crypto in an IRA?
Yes, Fidelity offers Bitcoin exposure in select IRA and 401(k) accounts through specialized products.
Conclusion
Buying cryptocurrency with Fidelity in 2025 is a seamless and secure experience for both new and seasoned investors. With institutional-grade custody, competitive fees, and an integrated investment platform, Fidelity stands out as a strong contender in the digital asset space.
While the platform currently supports a limited number of cryptocurrencies, its robust security and compliance protocols make it an excellent choice for investors looking to explore crypto through a trusted financial institution. As crypto adoption continues to grow, Fidelity is well-positioned to expand its offerings and remain at the forefront of the financial revolution.
If you’re ready to step into the world of digital assets, Fidelity offers a reliable gateway to start your crypto journey with confidence.