Fidelity Crypto: Pros, Cons and How it Compares

Crypto isn't for everyone — it's risky, volatile and can be hard to navigate. Fidelity's product has simplified the process, largely by starting investors with just a few crypto options.

Perhaps one of the most enticing aspects of Fidelity's crypto offering is that users can move cryptocurrency into and out of their other Fidelity accounts via the app. Previously, the inability to transfer assets was a major drag on Fidelity Crypto, but the product has come a long ways since it first debuted.

You'll have to set up your Fidelity account to enable this in-app transfer feature, which requires taking photos of both yourself and a form of identification. This may feel intrusive, but it's very common in the crypto world and part of KYC (Know Your Customer) regulations, so don't be alarmed.

Still, if you’re already an advanced crypto investor, chances are you’re not going to be interested in switching for these new offerings alone. While Fidelity’s low trading costs are competitive with some of the leading crypto exchanges, the selection and crypto functionality are not yet up to par with those crypto-focused platforms.

Why you might want to sign up

Here are a few factors to consider as you evaluate Fidelity's crypto offerings.

Crypto trading fees

Fidelity is offering customers what it describes as “commission-free” crypto trading. That doesn’t necessarily mean trading is free. The company says it takes a trading fee of up to 1% on crypto trades.

Still, that’s relatively good compared with other crypto services reviewed by NerdWallet. Coinbase, the largest U.S.-based exchange focused solely on crypto, has a confusing fee structure that can result in fees ranging from 2% to 4%, depending on the payment method.

Funding and minimums

Funding a Fidelity Crypto account could be easy if you already have a brokerage or cash management account with the company. You’ll be able to move money from Fidelity accounts into Fidelity Crypto.

There’s no minimum deposit to open a crypto trading account. And the minimum crypto purchase is $1. These factors put the company on even footing with most other leading exchanges.

If you don’t have a Fidelity account, making purchases will require you to create and fund an account such as a brokerage or cash management account.

Crypto IRA

Fidelity certainly stands out from the crowd for its crypto IRA. The only other platform we review with a comparable product is Crypto.com, but if we were to pit the two against each other, we'd take Fidelity's Crypto IRA any day.

Why? Fidelity is a U.S.-based, trusted leader in managing retirement assets. By bringing its experience in this space to the crypto arena, Fidelity has become an obvious choice for crypto retirement funds. (We'd like to note that entrusting your retirement to crypto's performance is a risky venture, but for those looking for such a strategy, Fidelity has you covered.)

Why you might want to use another exchange

Availability

While Fidelity has greatly expanded access to its crypto product, a few restrictions remain. For example, customers in Oregon can't buy, sell or deposit Solana[1]. But a few state-level restrictions isn't uncommon in the world of crypto.

Crypto selection

Fidelity Crypto’s offerings are on the low end among cryptocurrency platforms reviewed by NerdWallet. Granted, Bitcoin and Ethereum are the two most valuable cryptocurrencies (and Litecoin is one of the original altcoins), which means they are widely used and relatively well-established in this emerging sector.

However, cryptocurrency traders often look at more options when they are buying and selling. Crypto.com and Kraken, two major cryptocurrency exchanges, have several hundred cryptocurrencies for sale. Other brokerages also have more crypto options. Interactive Brokers, for example, has 11.

Functionality

Fidelity Crypto does not offer some of the advanced features available on competing exchanges. It doesn't allow staking, a process that allows owners of some cryptocurrencies to earn rewards similar to interest. And while you can trade crypto 24/7, most trades will actually take place during a particular window.

Alternatives to consider

Kraken	Crypto.com
Read reviewon NerdWallet	Learn moreon Crypto.com's website
Number of cryptocurrencies754	Number of cryptocurrencies473
Account minimum$0	Account minimum$0

The bottom line

Though Fidelity’s consumer crypto product isn't the most robust on the market, the firm’s brand name and track record may give some customers a level of comfort moving into an asset class like crypto. And the company has left the door open to expand its features and capabilities later on.

» Learn more: Read our review of Fidelity's brokerage.