Have you been watching the cryptocurrency market and feeling the pull of XRP? Perhaps you're keen to diversify your portfolio and explore digital assets. You've heard of Fidelity Investments, a trusted name in traditional finance, and are now wondering if you can bridge the gap between your established brokerage account and the world of Ripple (XRP).
You've come to the right place! While directly buying XRP on the open market through a traditional Fidelity brokerage account isn't as straightforward as buying a stock, there are avenues to gain exposure to this exciting digital asset. This comprehensive guide will walk you through the possibilities, step-by-step, to help you navigate the landscape of buying XRP with Fidelity.
It's crucial to understand that the cryptocurrency market is highly volatile and speculative. Investing in XRP, or any cryptocurrency, carries significant risks, including the potential for total loss of your investment. Always do your own thorough research and consider your personal risk tolerance before making any investment decisions.
Understanding Fidelity's Approach to Digital Assets
Fidelity Investments has been a pioneer among traditional financial institutions in embracing digital assets. They've recognized the growing interest and have been building out their capabilities, primarily through Fidelity Digital Assets (FDAS), which caters to institutional investors, and more recently, Fidelity Crypto® for individual investors.
However, it's important to differentiate:
Direct cryptocurrency trading for individual investors on Fidelity's main brokerage platform is currently limited to Bitcoin (BTC) and Ethereum (ETH) through Fidelity Crypto®.
For other cryptocurrencies like XRP, the approach is typically through investment products that hold the underlying asset or track its performance.
This guide will focus on how to gain exposure to XRP through Fidelity's offerings or by leveraging your Fidelity accounts to facilitate a purchase on another platform.
Step 1: Assess Your Current Fidelity Account & Crypto Comfort Level
Before we dive into the specifics, let's get you thinking about your current setup and your comfort with the crypto space.
Do you already have a Fidelity brokerage account? If yes, great! This will be your starting point. If not, you'll need to open one.
Are you comfortable with the volatility of cryptocurrencies? XRP, like all digital assets, can experience rapid and significant price swings.
What is your investment goal for XRP? Are you looking for long-term holding, or are you interested in short-term trading?
Your answers to these questions will help determine the most suitable path for you.
Step 2: Explore Fidelity's Crypto Offerings for Individual Investors
As of mid-2025, Fidelity's direct cryptocurrency trading for individual investors primarily revolves around Fidelity Crypto®.
Sub-heading: Fidelity Crypto® - Direct Crypto Access (Limited to BTC & ETH)
Fidelity Crypto® allows eligible individual investors to buy, sell, and hold Bitcoin (BTC) and Ethereum (ETH) directly within a dedicated Fidelity Crypto® account, often linked to an existing brokerage IRA.
Key takeaway: While Fidelity Crypto® is a significant step, it currently does not offer direct trading of XRP. So, if your primary goal is to directly hold XRP within a Fidelity-managed account, this specific offering won't fulfill that. However, it's a good indicator of Fidelity's commitment to the crypto space and might expand in the future.
Sub-heading: Indirect Exposure via Exchange-Traded Products (ETPs)
This is where your path to XRP through Fidelity might become clearer. Fidelity does provide access to certain Exchange-Traded Products (ETPs) that track the performance of various cryptocurrencies. These ETPs are publicly traded securities that you can buy and sell through your standard Fidelity brokerage account, much like a stock or an ETF.
How it works: An ETP that tracks XRP would hold XRP as its underlying asset or use derivatives to replicate its price movements. When you buy shares of the ETP, you're gaining exposure to XRP's price action without directly owning or needing to custody the actual cryptocurrency.
Researching XRP ETPs: You would need to use Fidelity's research tools to search for ETPs that specifically track XRP. A known example is the 21Shares XRP ETP (AXRP). You can search for such products using their ticker symbols within your Fidelity brokerage account's research section.
Important Note: Availability of specific ETPs can vary based on your location and regulatory approvals. Always check if a particular ETP is available for trading in your Fidelity account.
Step 3: Purchasing an XRP ETP on Fidelity (If Available)
If you find an XRP ETP available through Fidelity, here's the general process for purchasing it:
Sub-heading: Navigating Your Fidelity Account
Log In: Log in to your Fidelity brokerage account on the Fidelity website or through the Fidelity mobile app.
Navigate to Trading: Look for the "Trade" or "Invest" section. This is typically where you would place orders for stocks, ETFs, and other securities.
Search for the ETP: In the search bar, enter the ticker symbol of the XRP ETP you identified (e.g., AXRP).
Review ETP Details: Once you find the ETP, click on it to view its details.
Pay close attention to the prospectus: This document contains crucial information about the ETP's structure, fees (expense ratio), underlying assets, risks, and investment objectives.
Check the expense ratio: This is the annual fee you'll pay as a percentage of your investment.
Understand the risks: ETPs, especially those tied to volatile assets like cryptocurrencies, carry their own set of risks.
Sub-heading: Placing Your Trade Order
Select "Buy": Once you've reviewed the ETP's information and decided to proceed, select the "Buy" option.
Enter Order Details:
Quantity: Specify the number of ETP shares you wish to purchase.
Order Type:
Market Order: This will execute your trade immediately at the current market price. Be cautious with market orders for volatile assets, as the price can fluctuate rapidly.
Limit Order: This allows you to set a specific price at which you want to buy the ETP. Your order will only execute if the ETP's price reaches or falls below your specified limit. This is generally a safer option for volatile assets.
Time in Force: This determines how long your order remains active (e.g., "Day" for the current trading day, "Good-Till-Canceled" (GTC) until it's filled or you cancel it).
Preview Order: Before submitting, always preview your order to ensure all details are correct. Check the total cost, commissions (if any), and the estimated number of shares you will receive.
Confirm Trade: Once you're satisfied, confirm your trade. Your order will then be submitted for execution.
Step 4: Considering External Cryptocurrency Exchanges (Leveraging Fidelity for Funding)
If direct XRP ETPs are not available or don't meet your investment goals, you can use your Fidelity account to fund a purchase on a dedicated cryptocurrency exchange that does offer XRP. This method involves two main steps: funding your external account and then buying XRP on that platform.
Sub-heading: Funding Your External Crypto Exchange Account
Choose a Reputable Crypto Exchange: Select a cryptocurrency exchange that supports XRP trading. Popular options include:
Coinbase
Kraken
Gemini
Binance (check regional availability and regulations)
Always research the exchange's security measures, fees, and regulatory compliance before creating an account.
Open and Verify Your Exchange Account: Sign up for an account on your chosen exchange and complete their Know Your Customer (KYC) verification process. This typically involves providing personal identification.
Link Your Fidelity Account (or External Bank Account): Most crypto exchanges allow you to link a bank account for funding. You can usually link your bank account that is also connected to your Fidelity account. Common funding methods include:
ACH Transfer: This is a common and usually low-cost way to transfer funds from your bank account to the exchange. It can take a few business days for funds to clear.
Wire Transfer: Faster than ACH, but often comes with higher fees from your bank or the exchange. This is usually preferred for larger sums.
You would initiate the transfer from your crypto exchange account, pulling funds from your linked bank account. Fidelity acts as your banking institution in this scenario, providing the funds.
Sub-heading: Purchasing XRP on the External Exchange
Once your funds have arrived in your crypto exchange account:
Search for XRP: Navigate to the trading section of the exchange and search for "XRP" or "Ripple." You'll usually find trading pairs like XRP/USD or XRP/USDT (Tether).
Place Your Order:
Market Buy: This will purchase XRP at the current market price.
Limit Buy: This allows you to set a specific price at which you want to buy XRP. Your order will only execute if the price drops to your specified level.
Confirm Your Purchase: Review the details of your order, including fees, and confirm the transaction.
Sub-heading: Custody of Your XRP (Crucial Consideration)
Once you've purchased XRP on an external exchange, you have a critical decision:
Leave it on the Exchange (Hot Wallet): Convenient for active trading, but exposes you to exchange-specific risks (hacks, insolvency).
Transfer to a Personal Wallet (Cold Storage or Hardware Wallet): Highly recommended for long-term holding. This gives you full control over your private keys, significantly reducing counterparty risk. Hardware wallets like Ledger or Trezor are considered the most secure option for storing significant amounts of cryptocurrency.
Step 5: Monitoring Your Investment
Regardless of whether you gained exposure through an ETP on Fidelity or direct purchase on an external exchange, ongoing monitoring is essential.
Sub-heading: For XRP ETPs on Fidelity
Fidelity Portfolio View: You can track the performance of your XRP ETP directly within your Fidelity portfolio, alongside your other traditional investments.
News & Research: Utilize Fidelity's news and research tools to stay updated on market developments impacting the ETP and the underlying XRP asset.
Sub-heading: For Directly Held XRP on External Exchanges
Exchange Dashboard: Your chosen crypto exchange will have a dashboard to track your XRP holdings and their current value.
Price Trackers & Alerts: Use cryptocurrency price tracking apps or websites to set up alerts for significant price movements.
News Sources: Follow reputable crypto news outlets and analysts to stay informed about XRP-specific news, regulatory updates, and market trends.
Important Considerations & Risks
Regulatory Landscape: The regulatory environment for cryptocurrencies, including XRP, is still evolving and can be unpredictable. Regulatory changes can significantly impact XRP's price and availability.
Volatility: XRP is known for its high price volatility. Be prepared for potentially sharp and rapid price swings.
Liquidity: While XRP is a major cryptocurrency, some smaller exchanges or obscure trading pairs might have lower liquidity, meaning it could be harder to buy or sell large amounts quickly without affecting the price.
Security: If you choose to hold XRP on an external exchange, research their security practices thoroughly. If you transfer to a personal wallet, ensure you understand how to securely manage your private keys and seed phrases. Losing them means losing access to your crypto.
Fees: Be aware of all fees involved, including trading fees on exchanges, network transaction fees (gas fees), and ETP expense ratios. These can impact your overall returns.
Tax Implications: Cryptocurrency transactions, including buying, selling, and sometimes even holding, can have tax implications. Consult with a tax professional to understand your obligations.
10 Related FAQ Questions
How to open a Fidelity brokerage account?
To open a Fidelity brokerage account, visit the Fidelity Investments website, click on "Open an Account," and follow the prompts to provide your personal information, funding details, and complete the application process online.
How to fund my Fidelity brokerage account?
You can fund your Fidelity brokerage account via electronic funds transfer (EFT) from your bank, direct deposit, wire transfer, or by depositing checks.
How to find cryptocurrency ETPs on Fidelity's platform?
Log into your Fidelity account, navigate to the "Research" or "ETFs" section, and use the search bar to look for ETPs related to cryptocurrencies, specifically by searching for "XRP" or Browse digital asset categories.
How to interpret the expense ratio of an ETP?
The expense ratio is an annual fee expressed as a percentage of your investment that covers the ETP's operating and management costs. A lower expense ratio means more of your investment is working for you.
How to set a limit order for an ETP on Fidelity?
When placing a buy order for an ETP on Fidelity, select "Limit" as the order type and specify the maximum price per share you are willing to pay. Your order will only execute if the market price falls to or below this limit.
How to choose a reliable cryptocurrency exchange for XRP?
Look for exchanges with strong security records (e.g., cold storage, two-factor authentication), a good reputation, competitive fees, regulatory compliance in your region, and a wide selection of cryptocurrencies including XRP.
How to link my bank account to a crypto exchange?
Most exchanges allow you to link your bank account via ACH transfers by providing your bank's routing number and your account number, or sometimes through instant bank verification services.
How to transfer XRP from an exchange to a personal wallet?
On the exchange, find the "Withdraw" or "Send" option for XRP, enter your personal wallet's XRP address (and destination tag if required), confirm the amount, and initiate the transfer. Double-check the address carefully!
How to secure my personal crypto wallet?
Use a strong, unique password for your software wallet, enable two-factor authentication, and for hardware wallets, keep your seed phrase offline and in a secure location, never sharing it with anyone.
How to understand the tax implications of buying XRP?
Consult with a tax professional experienced in cryptocurrency. Generally, selling XRP for a profit, trading it for another crypto, or using it to purchase goods and services can trigger capital gains taxes.
