You're looking to navigate the exciting world of cryptocurrency with a trusted name like Fidelity! It's great you're doing your research. However, it's crucial to understand Fidelity's current cryptocurrency offerings before diving in.
As of my last update, Fidelity Investments does NOT directly offer the purchase of XRP (Ripple) on its Fidelity Crypto platform.
Fidelity Crypto primarily supports Bitcoin (BTC) and Ethereum (ETH), and recently added Litecoin (LTC), for direct purchase and trading. While Fidelity Digital Assets (a separate entity serving institutional clients) is exploring a broader range of digital assets and even potential XRP ETFs have been discussed in the market, retail investors through Fidelity Crypto are limited to these few major cryptocurrencies at this time.
This means if your heart is set on buying XRP, you'll need to use a different cryptocurrency exchange or platform. However, if you're open to exploring other major cryptocurrencies with Fidelity, here's a comprehensive guide on how to get started with their platform.
How to Invest in Cryptocurrencies (like Bitcoin or Ethereum) with Fidelity Investments
If you're a current Fidelity customer or considering becoming one, and you're interested in buying supported cryptocurrencies like Bitcoin or Ethereum, here's a step-by-step guide.
Step 1: Are You Ready for Crypto? Engage Your Inner Investor!
Before you even think about clicking "buy," let's take a moment. Investing in cryptocurrency is not like buying traditional stocks or bonds. It's often highly volatile, meaning its price can swing wildly in a short period. Are you comfortable with that level of risk? Do you understand that you could lose a significant portion, or even all, of your investment?
It's essential to educate yourself about the specific cryptocurrency you're interested in, its underlying technology, and its potential risks. Fidelity offers a lot of educational resources on their platform. Take advantage of them!
Step 2: Check Your Eligibility for a Fidelity Crypto® Account
Fidelity Crypto® is a specific account type separate from your standard brokerage account. Not everyone is eligible, and it's currently available to U.S. adults aged 18 and over in eligible states (California and Oregon are currently excluded).
Sub-heading: Confirming Your Eligibility
Existing Fidelity Customer: You must be an existing Fidelity customer with an individual or joint brokerage account. This brokerage account will serve as the funding source for your Fidelity Crypto® account.
Age and Residency: Ensure you meet the age requirement (18+) and reside in a state where Fidelity Crypto® is available. You can usually find the most up-to-date eligibility criteria on Fidelity's official website.
Step 3: Opening Your Fidelity Crypto® Account
This is where the rubber meets the road!
Sub-heading: The Application Process
Log In to Fidelity: Go to the Fidelity Investments website (
www.fidelity.com Navigate to Crypto: Look for sections related to "Crypto," "Cryptocurrency," or "Fidelity Crypto®." This might be under "Products," "Investing & Trading," or a dedicated "Crypto" tab.
Start the Application: Follow the prompts to begin the application for a Fidelity Crypto® account.
You'll likely be asked to confirm your personal information (full name, Social Security number, date of birth, country of citizenship, mobile number, email address, address).
You may also need to provide employment and income information.
The application process will guide you through linking an eligible Fidelity brokerage IRA to your crypto account if you're opening a Fidelity Crypto® IRA. If you don't have one, Fidelity will help you open one simultaneously.
Review and Submit: Carefully review all the information you've provided before submitting your application.
The application process is designed to be straightforward, but ensure all details are accurate to avoid delays.
Step 4: Funding Your Fidelity Crypto® Account
Once your Fidelity Crypto® account is open, you'll need to transfer funds to it.
Sub-heading: Transferring Funds from a Linked Account
Fund Your Brokerage Account (if necessary): Your Fidelity Crypto® account is funded by transferring money from an eligible linked Fidelity brokerage account. If your linked brokerage account doesn't have sufficient cash, you'll first need to transfer funds from your bank account to your Fidelity brokerage account.
This typically takes 1-3 business days for the funds to clear and be available.
Initiate Transfer to Crypto Account: Once funds are available in your linked brokerage account, you can initiate a transfer directly to your Fidelity Crypto® account. Look for options like "Transfer" or "Fund Account" within your Fidelity Crypto® interface.
Remember, you cannot directly transfer cryptocurrencies from an external wallet or another exchange into your Fidelity Crypto® account, nor can you transfer crypto out to an external wallet. Fidelity provides a custodial service where they hold your crypto assets securely within their platform.
Step 5: Buying Supported Cryptocurrencies (Bitcoin, Ethereum, Litecoin)
With your account funded, you're ready to make your first crypto purchase!
Sub-heading: Placing Your Trade
Access the Trading Interface: Within your Fidelity Crypto® account, navigate to the trading section.
Select Your Cryptocurrency: Choose the cryptocurrency you wish to buy (e.g., Bitcoin, Ethereum, or Litecoin).
Enter Order Details:
Amount: Specify how much crypto you want to buy, either in terms of the cryptocurrency itself (e.g., "0.01 BTC") or a dollar amount (e.g., "$100 of ETH"). Fidelity allows purchases starting as low as $1.
Order Type: You'll typically have options for:
Market Order: This executes your trade immediately at the best available price.
Limit Order: This allows you to set a specific price at which you want your order to be executed. Your order will only go through if the market reaches that price. This is often recommended for volatile assets like crypto to manage risk.
Review and Confirm: Carefully review your order details before confirming. Ensure the cryptocurrency, amount, and order type are correct.
Execute Trade: Confirm your trade. Buy orders generally settle instantly after they fill.
Sub-heading: Understanding Fees and Trading Hours
Transaction Fee (Spread): Fidelity Crypto® charges a spread of 1% on each crypto buy and sell transaction. This means the price you see and the price you execute at might have a slight difference, which is how Fidelity generates revenue from crypto trades.
Trading Hours: You can trade crypto on Fidelity Crypto® 7 days a week, typically 23 hours a day.
10 Related FAQ Questions
How to check if Fidelity offers XRP directly?
You can check Fidelity's official website or contact their customer service. As of now, Fidelity Crypto does not offer direct XRP purchases.
How to buy XRP if Fidelity doesn't offer it?
To buy XRP, you would need to use a dedicated cryptocurrency exchange that supports XRP, such as Coinbase, Kraken, Binance, or Crypto.com.
How to open a Fidelity Crypto account?
Log in to your Fidelity brokerage account, navigate to the crypto section, and follow the prompts to apply for a Fidelity Crypto® account.
How to fund a Fidelity Crypto account?
You fund your Fidelity Crypto account by transferring cash from a linked eligible Fidelity brokerage account.
How to transfer crypto to or from Fidelity?
Currently, Fidelity Crypto does not support transferring cryptocurrencies to or from external wallets or other platforms. All crypto purchased through Fidelity is held in custody by Fidelity Digital Assets.
How to find out which cryptocurrencies Fidelity supports?
Fidelity's website clearly lists the cryptocurrencies available for direct trading on their Fidelity Crypto platform, which are currently Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
How to know the fees for crypto trading on Fidelity?
Fidelity charges a 1% spread on each buy and sell crypto transaction on its Fidelity Crypto platform.
How to understand the risks of crypto investing with Fidelity?
Fidelity provides educational resources on its platform outlining the high volatility and potential for total loss associated with cryptocurrency investments. It's crucial to review these materials thoroughly.
How to set a limit order for crypto on Fidelity?
When placing a crypto trade on Fidelity Crypto, you can select "Limit Order" and specify the price at which you wish your order to be executed.
How to invest in crypto through an IRA with Fidelity?
Fidelity offers "Fidelity Crypto for IRAs," allowing eligible investors to hold Bitcoin, Ethereum, and Litecoin in a Roth, Traditional, or Rollover IRA. You would open a Fidelity Crypto® IRA account.
