How to buy crypto (Bitcoin) at Fidelity Investments?
Unfortunately, it is only possible for institutional investors to invest directly in Bitcoin & Ethereum at Fidelity Investments. Nevertheless, you can still buy crypto with your Fidelity Investments account! In this article, I will show you how to buy your favourite crypto currencies directly with a crypto exchange.
How to buy crypto with Fidelity Investment?
When you want to buy crypto with Fidelity Investment, you need to open an account with a crypto exchange. In the overview below, you can immediately see which parties you can join:
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After you open an account, you need to go through verification. After this is successful, you can immediately deposit money into your account and start investing!
Buying crypto is often a matter of a few mouse clicks. You select the crypto asset you want to buy and then enter the amount you want to invest. If you want to actively trade, you can also opt for an order: you then set an amount at which you will buy the crypto.
It is important to regularly evaluate your crypto investments. That way, you can determine whether crypto still fits within your risk profile!
The Fidelity crypto ETF
You can, however, invest in crypto indirectly at Fidelity by buying a crypto ETF. This has some advantages:
- Simplicity: buying a crypto ETF is relatively simple.
- Management: you are not responsible for storing the crypto yourself.
Yet there are also many drawbacks to buying a crypto ETF at Fidelity Invest:
- Fees: you pay transaction fees + management fees on the ETF.
- Lack of control: you cannot withdraw or sell your crypto yourself.
- Central: the crypto will (hopefully) be purchased by a central party.
The very concept of crypto is that it is decentralised. By investing in crypto with an ETF, you remove this power. You end up having to trust that Fidelity is actually buying the crypto you invest in. This has not always gone well in the past; therefore, there is always a chance that you will lose your investment.
Services for institutional investors
Fidelity Investments offers more crypto services for affluent clients & institutional investors. If you do not fall into this category, it is better to use crypto exchanges. Institutional investors can turn to Fidelity Investments for the following services:
- Fidelity Crypto Custody: institutional services can securely store their digital crypto currencies & assets with this service.
- Fidelity Crypto Clearing: this service allows institutional investors to have their investments executed.
- Fidelity Investments Digital Assets: direct investments in crypto are only accessible to affluent clients of Fidelity Investments.
This is how you maintain control
You cannot buy Bitcoin or Ethereum directly at Fidelity Investment. An ETF is a nice idea, but it does not give you full control over your crypto. When done right, a crypto exchange does allow you to gain full control over your cryptos.
You do this by removing your cryptos from the exchange as soon as possible after you buy them. You can easily create an external wallet online: an example is the free Trust Wallet. Only when you own the keys to your crypto are you really 100% in control!
Fidelity is a US multinational with about $2.5 trillion in assets under management! It operates globally and is regulated by the SEC (Securities and Exchange Commission) and ESMA (European Securities and Markets Authority).
Can you buy Bitcoin & Ethereum at Fidelity Investments?
As a retail investor, it is unfortunately not possible to buy crypto at Fidelity. For investors with a small purse, there is only the possibility of buying a crypto ETF. Fortunately, you can still buy & sell crypto via a crypto exchange.