How to Trade Crypto on Fidelity – A Step‑by‑Step Guide

Cryptocurrency has moved from a niche hobby to a mainstream investment class, and many traditional brokerages are scrambling to add crypto to their platforms. Fidelity, one of the biggest names in the financial world, finally opened the door for its customers to dip their toes into digital assets. If you’re wondering how to trade crypto on Fidelity, you’ve landed in the right spot. This guide walks you through everything from account setup to order execution, all while keeping the tone relaxed enough to feel like a chat with a knowledgeable friend.

Before you start, it’s worth noting that Fidelity’s crypto offering is not the same as a dedicated exchange like Binance or Coinbase. The firm partners with a third‑party custodian, which means you’ll get the safety of a regulated environment but a slightly different user experience. The good news? You can still buy, sell, and hold popular coins like Bitcoin and Ethereum directly from your Fidelity account, and you’ll be able to see those holdings alongside your stocks, ETFs, and retirement accounts—all in one dashboard.

In the sections that follow, we’ll break down each step, sprinkle in some practical tips, and point you to a few related resources that can help you broaden your crypto knowledge. By the end of this article, you’ll have a clear roadmap for how to trade crypto on Fidelity and feel confident to place your first trade.

how to trade crypto on fidelity: Getting Started

The first hurdle is getting your Fidelity account ready for crypto. If you already have a brokerage account, you’re a step ahead. If not, you’ll need to open one—nothing too complicated, just the usual ID verification and funding steps.

Step 1: Verify Eligibility and Enable Crypto Trading

• Log into your Fidelity portal (desktop or mobile).
• Navigate to the “Settings” or “Account Services” tab.
• Look for “Digital Assets” or “Crypto Trading” and toggle the option to “Enable.”
• If you don’t see the option, you might need to meet certain criteria (U.S. residency, age 18+, a funded brokerage account, etc.).

Fidelity may ask you to complete a short questionnaire about your investment experience and risk tolerance. This is standard practice for any regulated platform handling volatile assets.

Step 2: Fund Your Account

• Transfer cash from your linked bank account to your Fidelity brokerage.
• Make sure you have enough liquid cash to cover the crypto purchase plus any potential fees.
• Fidelity typically settles crypto trades in a “cash‑settlement” model, meaning you won’t need to move the coins off‑platform unless you specifically request a withdrawal later.

Once your cash is in the brokerage, you’re ready to explore the crypto market within Fidelity.

how to trade crypto on fidelity: Choosing the Right Coins

Fidelity’s crypto lineup is curated, focusing on the most liquid and widely recognized assets. As of 2024, the platform supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and a few stablecoins. While the selection is narrower than on a pure exchange, the quality‑control approach reduces exposure to obscure or low‑volume tokens that can be risky.

If you’re still building a foundation, consider checking out the How to Build a Crypto Portfolio: Step‑by‑Step Guide. That article walks you through diversification principles that apply whether you’re using Fidelity, Coinbase, or any other platform.

How to Assess Which Coin Fits Your Strategy

• Market Capitalization: Larger caps like BTC and ETH tend to be less volatile.
• Use Case: Ethereum’s smart‑contract capabilities might align with a longer‑term tech‑focused thesis.
• Liquidity: Ensure the coin you pick has enough daily volume on Fidelity’s platform to execute your trade without slippage.

how to trade crypto on fidelity: Placing Your First Trade

Now that your account is funded and you’ve selected a coin, it’s time for the fun part—executing a trade. The process mirrors buying a stock, which makes it intuitive for anyone already familiar with traditional brokerage tools.

Step‑by‑Step Walkthrough

1. Search the Ticker: Type “BTC” or “ETH” into the search bar. Fidelity uses standard ticker symbols for crypto (e.g., “BTC” for Bitcoin).
2. Select “Buy”: Click the “Buy” button next to the coin you want.
3. Choose Order Type: You can place a market order (executed instantly at the current price) or a limit order (set a price you’re willing to pay).
4. Enter Quantity: Input either the dollar amount you want to spend or the exact number of coins.
5. Review and Confirm: Double‑check the details, then hit “Submit.” The trade should settle within a few minutes.

If you’re hesitant about market orders, start with a limit order. It gives you control over the price and can protect you from sudden spikes—especially useful in the notoriously fickle crypto market.

Tips to Optimize Your Trade Execution

• Trade during high‑liquidity periods (usually US market hours) to reduce slippage.
• Set stop‑loss orders if Fidelity supports them for crypto; this can automatically limit losses.
• Keep an eye on transaction fees. Fidelity’s crypto fees are generally competitive, but they can vary based on the size of your trade.

how to trade crypto on fidelity: Managing and Monitoring Your Position

After your order fills, the crypto appears in your portfolio view just like any other asset. You can track performance, set alerts, and even rebalance your holdings without leaving the Fidelity ecosystem.

Using Fidelity’s Tools for Crypto

• Portfolio Tracker: View real‑time price changes, P&L, and allocation percentages.
• Research Hub: Fidelity provides analyst commentary and market news for major coins, helping you stay informed.
• Tax Reporting: Crypto transactions are automatically logged, simplifying year‑end reporting.

Remember, crypto tax treatment can differ from traditional securities. If you need deeper guidance, consider reading up on related topics like Can You Trade Crypto on Webull? Full Guide for 2024 which discusses tax implications on other broker‑deals, offering a broader perspective.

how to trade crypto on fidelity: Advanced Strategies

Once you’re comfortable with basic buying and selling, you might explore more sophisticated tactics. While Fidelity doesn’t currently offer futures, options, or margin on crypto, you can still apply several strategies within the constraints of a cash‑settlement model.

Dollar‑Cost Averaging (DCA)

DCA involves buying a fixed dollar amount of a cryptocurrency at regular intervals—say, $200 every two weeks. This smooths out price volatility and reduces the impact of market timing. Set up recurring transfers in Fidelity’s “Automatic Investment” section, and the platform will handle the rest.

Rebalancing Your Crypto Allocation

If you allocate 5% of your overall portfolio to crypto, periodic rebalancing ensures you stay at that target. Use Fidelity’s “Portfolio Review” tool to compare current versus target allocations, then make small trades to bring the percentages back in line.

Staying Informed

Crypto markets evolve rapidly. Subscribe to Fidelity’s newsletters, join their webinars, and keep an eye on reputable news sources. Pair this with a deep dive into topics like Can You Trade Crypto on Thinkorswim? Everything You Need to Know for a broader view of how different platforms approach crypto trading.

how to trade crypto on fidelity: Common Pitfalls and How to Avoid Them

Even seasoned investors can stumble when venturing into crypto. Below are some frequent mistakes and practical ways to sidestep them.

Over‑Concentration

It’s tempting to go all‑in on a favorite coin, but diversification reduces risk. Stick to a sensible allocation—most advisors recommend 2‑10% of a traditional portfolio for crypto.

Ignoring Fees

Fidelity’s fees are transparent, yet they can add up if you trade frequently. Keep a log of your transaction costs and consider using limit orders to minimize spread expenses.

Neglecting Security Practices

Although Fidelity holds the private keys for you, it’s wise to enable two‑factor authentication (2FA) on your brokerage login and use strong, unique passwords.

Misunderstanding Tax Events

Every sell, trade, or conversion is a taxable event. Use Fidelity’s tax center to generate reports, and consult a tax professional if you’re unsure about capital gains calculations.

how to trade crypto on fidelity: Frequently Asked Questions

Can I withdraw crypto from Fidelity to an external wallet?

As of now, Fidelity’s crypto offering is custodial only—you can’t directly send Bitcoin to a personal wallet. If you need off‑platform storage, you would have to sell the crypto, withdraw cash, and purchase it again on a platform that supports withdrawals.

What fees does Fidelity charge for crypto trades?

Fidelity typically charges a spread plus a small commission (often around 0.25% per trade). The exact fee structure is displayed during the order preview.

Is my crypto protected by SIPC?

SIPC protects securities, not crypto. However, Fidelity’s partnership with a regulated custodian offers a level of insurance and oversight that many pure exchanges lack.

Do I need a special account type?

No. Your standard brokerage account can be upgraded to include crypto trading, provided you meet eligibility requirements.

By now, you should have a solid grasp of how to trade crypto on Fidelity. The platform blends the familiar feel of a traditional broker with the exciting world of digital assets, making it a great entry point for investors who value security and integrated portfolio management. Remember to start small, stay informed, and treat crypto as a complement—not a replacement—to your broader investment strategy.

Happy trading, and may your crypto journey be as rewarding as it is educational!