How to Buy Crypto with Fidelity
Learn about investing in cryptocurrencies with Fidelity, from direct Bitcoin and Ethereum purchases to the nuances of associated fees.
Summary: Fidelity offers direct investment opportunities in Bitcoin and Ethereum, along with access to crypto-related ETFs, Trusts, and stocks. However, due to its higher fees, investors seeking a broader range of cryptocurrencies and more competitive fees might find Kraken a compelling alternative. Kraken provides a secure and efficient platform for trading over 200 crypto assets, ensuring compliance with FinCEN regulations and offering additional benefits like crypto staking.
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Can I Buy Crypto with Fidelity?
Yes, you can invest in Bitcoin and Ethereum directly through Fidelity Crypto, as well as access investment opportunities in crypto-related ETFs, Trusts, and stocks of crypto companies. Yet, it's vital to be mindful of Fidelity's high fees, which can exceed 2% in fees and spreads, making it more expensive compared to some alternatives.
For those interested in a broader selection of cryptocurrencies, a regulated U.S. crypto exchange overseen by the Financial Crimes Enforcement Network (FinCEN) might be worth considering. These platforms comply with financial regulations and offer a secured way to trade a diverse range of cryptocurrencies like BTC, ETH, and SOL using U.S. dollars.
How to Buy Crypto with a Fidelity Alternative
Kraken stands out as a leading U.S.-based alternative for investors looking to buy cryptocurrencies, offering a secure and efficient platform that adheres to FinCEN regulations. Renowned for its trustworthiness, Kraken serves over 10 million users worldwide, providing a seamless experience for depositing USD directly from bank accounts. It boasts access to over 200 crypto assets, featuring competitive fees and additional benefits like crypto staking, making it a preferred choice for those seeking a trusted alternative to Fidelity for their crypto investments.
To start buying crypto on Kraken, simply:
- Set Up an Account: Navigate to the Kraken website and sign up.
- Deposit Funds: Link your bank account for swift USD transfers.
- Choose Your Crypto: Browse through more than 200 available cryptocurrencies.
- Make Your Purchase: Select the amount to invest, choose your desired crypto, and complete the transaction.
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What are the Fees?
When converting USD to cryptocurrencies through a bank, it's crucial to understand the fees involved. These typically encompass charges for deposits, trades, and withdrawals. Trading fees on various exchanges usually fall between 0.1% and 0.5%.
Kraken emerges as a cost-effective solution for those using a bank for their crypto transactions. With trading fees starting at just 0.16%, Kraken offers a competitive edge over rivals like Coinbase, which often have fees above 2%. Moreover, Kraken provides free USD deposits, including ACH transfers, making it a compelling option for U.S.-based investors.
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.
Bottom Line
In conclusion, Fidelity offers a direct path to Bitcoin and Ethereum investments, alongside opportunities in crypto-related ETFs, Trusts, and stocks, albeit with higher fees. For a wider array of cryptocurrencies and more competitive fees, Kraken presents itself as a leading U.S.-based alternative, adhering to FinCEN regulations and catering to over 10 million users with access to over 200 crypto assets. Whether considering direct investments through Fidelity or exploring alternatives like Kraken, it's essential to weigh fees, security, and regulatory compliance to make informed decisions in the dynamic world of cryptocurrency investment.
