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Can I Buy and Sell Crypto On Fidelity? How Does It Work
Yes, you can buy and sell crypto on Fidelity, but with some limitations. Fidelity currently supports only Bitcoin (BTC) and Ethereum (ETH) through its partnership with Paxos. Using market orders, you can trade these cryptocurrencies directly within your Fidelity account.
However, Fidelity does not allow crypto transfers in or out, meaning you can't send or receive digital assets to an external wallet.
It best suits long-term investors looking to add crypto to a diversified portfolio. Unlike traditional investing and trading, the platform doesn't offer advanced trading features or 24/7 trading.
How to Buy and Sell Crypto on Fidelity
Fidelity lets you trade major cryptocurrencies like Bitcoin and Ethereum directly within the same app you use for stocks, IRAs, and ETFs.
However, it operates under stricter controls than pure-play crypto platforms, which affects flexibility and trading hours.
1. Research the Cryptocurrency Before You Buy
Before placing a crypto trade on Fidelity, it’s important to understand the coin’s purpose, volatility, and long-term potential.
Fidelity supports only a few coins, so you’ll mostly be working with top assets like Bitcoin (BTC) and Ethereum (ETH).
Understand the fundamentals: Bitcoin is often seen as a store of value, while Ethereum powers decentralized apps. Use Fidelity’s educational resources or refer to sites like CoinMarketCap and Messari for deeper analysis.
Know what’s supported: Fidelity only offers a limited set of cryptocurrencies, currently BTC and ETH. You can’t trade altcoins like Solana or Cardano here.
Look at performance trends: Use the Fidelity crypto dashboard to see price history, volatility, and market performance over various timeframes.
Because Fidelity doesn’t offer as many research tools as full-featured crypto exchanges, combining in-app data with external sources can lead to more informed decisions.
2. Assess Your Risk and Trading Objectives
Even though Fidelity makes it simple to invest in crypto, that doesn’t mean it’s right for every portfolio. Think about how it fits into your broader investment goals.
Clarify your role: Are you adding a small position for diversification or actively managing a trade? With fewer coins and no advanced order types, Fidelity suits long-term holders more than traders.
Plan your limits: Since Fidelity doesn’t offer stop-losses or automatic risk controls, set personal rules for how much to invest and when to exit.
Consider volatility: Crypto prices can swing significantly—more than stocks. Because Fidelity’s trading hours are limited (4 AM to midnight ET), you won’t have 24/7 access.
Taking a conservative approach is wise on a platform like Fidelity, where real-time crypto tools are still limited compared to dedicated exchanges.
3. Buy and Sell Crypto on Fidelity’s Platform
Fidelity’s crypto trading is integrated into the core app and website, allowing you to place simple market orders quickly. Still, there are some limitations to be aware of.
Search and confirm the coin: Look for BTC or ETH in the app’s crypto section. Fidelity doesn’t support many altcoins or meme tokens.
Place a market order: You can only place market orders—there are no limit or stop orders available for crypto.
Buy fractional shares: Fidelity allows fractional investing, so you can start with as little as $1.
There are no direct trading commissions, but Fidelity includes a spread (typically around 1%) in the price. You’ll see the estimated cost and fees before submitting the trade.
4. Monitor and Manage Your Crypto Holdings
After your purchase, it’s important to track your position and understand how it interacts with the rest of your portfolio. Fidelity’s dashboard helps consolidate your view.
Track portfolio exposure: See how much of your total investments are allocated to crypto alongside stocks and funds.
Review performance history: The platform shows recent performance, cost basis, and estimated gain/loss.
Sell through the same screen: Selling is just as simple—select your position and hit “Sell.” You can only sell during supported trading hours.
While Fidelity doesn’t support advanced charting or crypto alerts, it does offer clear summaries and transaction history to help manage your crypto investments over time.
Best Practices for Trading Crypto on Fidelity
Fidelity isn’t built for active crypto traders, but it can still be a smart way to add digital assets to a diversified portfolio—if used carefully.
Stick to major coins: With only BTC and ETH available, don’t expect access to fast-moving altcoins or DeFi tokens.
Use external tools for tracking: For taxes and performance analysis, tools like CoinTracker or Koinly can help fill the gaps.
Avoid emotional trading: Since you can't automate entries or exits, it’s even more important to stick to your plan and not chase prices.
Know the tax implications: Fidelity doesn’t issue Form 1099-B for crypto. You’re responsible for tracking gains and losses on your own.
Over time, Fidelity may expand its crypto offerings. But for now, its simplicity is best suited to long-term investors, not high-frequency traders.
Main Limitations of Trading Crypto on Fidelity
While Fidelity offers a simple way to trade Bitcoin and Ethereum, several important limitations should be considered before entering the market.
Limited coin selection: Fidelity only supports Bitcoin (BTC) and Ethereum (ETH), with no access to altcoins or tokens beyond these.
No crypto transfers: You cannot send or receive crypto to or from external wallets—everything must stay within Fidelity’s system.
Market orders only: There are no limit or stop orders, meaning you must accept the current market price when trading.
Restricted trading hours: Crypto is available from 4 AM to midnight ET—not 24/7 like on most crypto exchanges.
No tax reporting support: Fidelity does not issue 1099-B forms for crypto, so tracking gains and losses is your responsibility.
These limitations make Fidelity more suitable for buy-and-hold investors rather than active crypto traders seeking advanced tools or broader flexibility.
