Asset management giant Fidelity Investments has officially launched Fidelity Crypto, enabling retail investors to trade Bitcoin (BTC) and Ethereum (ETH) directly through its existing stock trading app. The platform emphasizes zero commission fees, with Fidelity earning revenue through a less-than-1% bid-ask spread instead.
Key Features of Fidelity Crypto
- Seamless Integration: Available within the existing Fidelity Investments app (no separate download required).
- 24/7 Trading: Cryptocurrencies can be traded around the clock.
- Low Minimums: Start trading with as little as $1.
- Zero Commissions: No transaction fees (revenue generated via spread).
- Broad Accessibility: Currently available to customers in 36 U.S. states, including New York.
How to Get Started
Existing Fidelity clients can enable crypto trading in three simple steps:
- Open the Fidelity Investments app.
- Select "Open Crypto Account" and link an eligible brokerage account.
- Begin trading BTC/ETH instantly.
Risk Disclosure: What Investors Should Know
Fidelity underscores the high-risk nature of cryptocurrency investing:
"Cryptocurrencies are highly volatile and may become illiquid. They are suitable only for investors with a high risk tolerance. Investors could lose the entire value of their holdings."
Additional safeguards and limitations:
- Custody & Trading: Provided by Fidelity Digital Asset Services, LLC (a NY state-chartered trust company).
- Brokerage Services: Offered by Fidelity Brokerage Services LLC (member of NYSE/SIPC).
- No FDIC/SIPC Protection: Cryptocurrencies are not covered by FDIC insurance or SIPC safeguards.
Why Fidelity’s Entry Matters
As a Forbes Top 50 Blockchain Company (2023) managing $4.2 trillion in assets, Fidelity’s move signals institutional confidence in crypto despite recent market turbulence. With 36 million retail clients, this launch democratizes access while maintaining regulatory compliance.
FAQs About Fidelity Crypto
1. Is Fidelity Crypto available worldwide?
Currently, it’s only available to U.S. residents in 36 states. International expansion plans remain unconfirmed.
2. How does Fidelity make money without fees?
Revenue comes from the bid-ask spread (difference between buy/sell prices), typically under 1%.
3. Can I transfer my existing crypto to Fidelity Crypto?
No. The platform currently supports only BTC and ETH purchases via USD (no external wallet transfers).
4. What security measures are in place?
👉 Explore Fidelity’s multi-layered security protocols for asset protection.
5. Are tax reports provided?
Yes. Fidelity issues IRS Form 1099 for crypto transactions to simplify tax filings.
Final Thoughts
Fidelity Crypto bridges traditional finance and digital assets, offering a user-friendly, compliant gateway for retail investors. While risks remain, its emphasis on education and transparency sets a benchmark for institutional crypto offerings.
👉 Learn how Fidelity compares to other crypto platforms in security and features.
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