Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
Summary: Fidelity provides direct access to Bitcoin and Ethereum through its Fidelity Crypto service, with a 1% minimum fee in the spread. The platform also offers alternative crypto-related investment vehicles like ETFs and Trusts. Operating under robust security measures in line with Fidelity Digital Assets' institutional standards, it serves as a versatile option for crypto investments.
For a broader selection of cryptocurrencies beyond Bitcoin and Ethereum, we recommend considering a regulated U.S. crypto exchange, such as eToro which is compliant with FinCEN guidelines. These platforms typically offer a secure way to deposit U.S. dollars and acquire a wider range of digital assets, often with competitive fee structures.
Can I Buy Crypto with Fidelity?
While Fidelity does offer a way to invest in Bitcoin and Ethereum directly through Fidelity Crypto, they also provide other investment avenues related to cryptocurrency. These include crypto-focused ETFs, Trusts, and stocks tied to cryptocurrency enterprises. However, it's important to exercise caution due to various associated risks. Concerns around asset management and custody have been underlined by recent challenges faced by other entities like Genesis and Grayscale.
If you're interested in a broader array of cryptocurrencies beyond Bitcoin and Ethereum, you might want to consider a U.S. crypto exchange regulated by the Financial Crimes Enforcement Network (FinCEN). These platforms adhere to financial regulations and offer a secure environment to convert U.S. dollars into a variety of cryptocurrencies like BTC, ETH, and SOL, among others.
How to Buy Bitcoin and Crypto with a Fidelity Alternative
The safest and easiest way to buy cryptocurrencies in the U.S., as an alternative to Fidelity, involves using a FinCEN-regulated exchange. Such platforms allow secure USD deposits via bank/ACH transfers, debit and credit cards, among other methods. eToro, with its lower fees, competitive spreads, and broad asset range, is preferred over well-known competitors like Coinbase.
Follow this straightforward guide to begin your journey within minutes:
- Visit eToro to sign up and verify your identity.
- Select the 'Deposit Funds' button on the bottom left of your screen.
- Select the amount of USD you want to deposit and your preferred deposit method (e.g ACH Transfer or Debit/Credit Card).
- Complete the USD deposit and use the funds credited to your account to invest in cryptocurrencies.
What are the Fees?
When it comes to trading crypto-related stocks, ETFs, and a range of other financial products on Fidelity, you'll find there are no explicit charges or upfront fees to contend with. Fidelity, however, incorporates a fee within the spread, which represents the gap between the purchase and sale prices of various investment options, typically close to 1%.
This fee structure is akin to what you might experience with other platforms like eToro. One distinct advantage of Fidelity, though, is its broad spectrum of investment choices, extending beyond crypto to include stocks, bonds, and mutual funds. This gives you a more diversified range of assets to invest in, compared to platforms that mainly focus on crypto or derivatives.
What is the Fidelity Crypto ETF?
If you're an individual investor interested in cryptocurrency through Fidelity, consider the Fidelity Crypto Industry and Digital Payments ETF, also known as FDIG. This ETF offers a way to invest in companies involved in digital payments and the crypto sector. You can find it listed on the Nasdaq Exchange, and it's available for purchase through brokers that support this exchange.
Here's a breakdown of the assets that make up the FDIG ETF:
- Square Inc (SQ) Class A: 14.91%
- Coinbase Global Inc (COIN) Ordinary Shares - Class A: 14.21%
- Marathon Digital Holdings Inc (MARA): 7.61%
- Riot Platforms Inc (RIOT): 7.56%
- Hut 8 Mining Corp: 5.56%
- Applied Digital Corp (APLD): 4.37%
- Cleanspark Inc (CLSK): 3.71%
- HIVE Blockchain Technologies Ltd: 3.56%
- Bitfarms Ltd: 2.60%
- Galaxy Digital Holdings Ltd: 2.46%
By choosing this ETF, you gain diversified exposure to key players in the digital payment and cryptocurrency industries.
About Fidelity Crypto
Fidelity Crypto, a service by Fidelity Digital Assets, enables individual investors to purchase, sell, and hold Bitcoin and Ethereum securely. The platform imposes a mandatory 1% minimum fee within the spread for these transactions. Operating under the robust security protocols set by Fidelity Digital Assets since 2018, it integrates both traditional and crypto investments into a single user-friendly interface. Additionally, the platform offers educational resources to help users understand the complex world of cryptocurrencies.
In summary, Fidelity offers a reliable gateway for investing in Bitcoin and Ethereum via its specialized service, Fidelity Crypto. It adds layers of institutional-grade security but charges a 1% minimum fee in the spread. Additionally, it provides alternatives like crypto-focused ETFs and Trusts for those looking to diversify. If you're keen on a wider selection of digital assets, consider platforms like eToro that are FinCEN-regulated and offer a greater variety of cryptocurrencies with competitive fee structures. Whether you opt for Fidelity or a regulated U.S. exchange, always exercise due diligence and make informed decisions as you explore the evolving world of crypto investments.