Can You Buy Crypto with Fidelity?

Fidelity, a renowned financial institution, has ventured into the world of cryptocurrencies, offering investors new avenues to participate in this dynamic market. However, the question remains: Can you truly buy crypto with Fidelity, and if so, what are your options? Let’s begin by examining Fidelity’s current crypto offerings.   

Direct Crypto Purchases at Fidelity 

Unlike many traditional financial institutions, Fidelity provides direct cryptocurrency trading through its Fidelity Crypto platform. Currently, investors can buy and sell Bitcoin, Ethereum, and Litecoin within their existing accounts. While this offers a convenient entry point into the crypto market, the platform’s limitations may restrict some investors. Fidelity Crypto is currently unavailable in 12 states and doesn’t permit cryptocurrency transfers into or out of your account, which could be a deal-breaker for certain traders. 

For those seeking alternative investment strategies at Fidelity, they also offer Crypto ETFs that track the prices of Bitcoin and Ethereum. These ETFs provide indirect exposure to the crypto market within a traditional investment vehicle. 

In addition, Fidelity has recently launched its own Crypto IRA product, allowing investors to include Bitcoin and Ethereum directly in their retirement portfolios. 

Investing in Crypto Directly vs. ETFs 

Choosing how to invest in cryptocurrency is a critical decision that can significantly impact your investment outcomes. There are two primary methods:  

• Direct Ownership: By purchasing cryptocurrencies like Bitcoin, Ethereum or Solana directly, you gain complete control over your assets. This approach offers the potential for substantial returns. You also have the flexibility to buy, sell, or hold your cryptocurrencies as desired.  

• Investing Through ETFs: Cryptocurrency ETFs offer a traditional investment approach, pooling funds from investors to create a diversified portfolio of cryptocurrencies. While they provide accessibility, compared to direct ownership, ETFs come with significant trade-offs.  

ETF investors relinquish direct control over their crypto holdings, relying on fund managers to make investment decisions. Additionally, unlike direct crypto ownership, ETFs typically deliver lower potential returns due to factors such as management fees and diversification. Furthermore, ETFs are subject to traditional stock market trading hours, limiting opportunities to capitalize on the 24/7 nature of the cryptocurrency market. This can be a disadvantage for investors seeking to actively trade or respond to market fluctuations in real-time.  

How to Access Bitcoin & Other Cryptocurrencies 

If you want to invest in cryptocurrencies, there are several options: 

• Crypto IRAs: Crypto IRAs offer a unique blend of tax advantages, direct ownership benefits, and the growth potential inherent in cryptocurrencies. By investing directly in a diverse range of digital assets, you can potentially maximize your returns while deferring taxes. Platforms like BitcoinIRA¹ stand out by providing access to over 75+ different cryptocurrencies, empowering investors to build highly customized portfolios tailored to their financial goals.  

This level of flexibility, combined with the tax benefits of an IRA, can make Crypto IRAs a compelling investment option for those seeking to harness the growth potential of the cryptocurrency market. 

• Cryptocurrency Exchanges: Cryptocurrency exchanges are online platforms where you can buy, sell, and trade various digital assets. Exchanges like Fidelity Crypto provide a regulated platform but currently limit offerings to Bitcoin, Ethereum, and Litecoin. 

• Crypto ETFs: Cryptocurrency ETFs offer a traditional investment approach, providing exposure to the crypto market without direct ownership. These funds track the price of specific cryptocurrencies. Currently, Bitcoin and Ethereum are the only cryptocurrencies with dedicated ETFs. 

Can I buy Bitcoin in my Fidelity IRA? 

Yes, Fidelity now allows investors to purchase only Bitcoin and Ethereum directly within its Fidelity Crypto IRA accounts. Previously, the platform only provided access to Bitcoin and Ethereum through ETFs. This new development offers investors the opportunity to own actual cryptocurrencies in their retirement portfolios rather than just gaining indirect exposure through ETFs. 

How to Access Bitcoin & Crypto in Your IRA 

Crypto IRAs offer a unique opportunity to combine the tax advantages of traditional retirement accounts with the growth potential of digital assets. By investing directly in cryptocurrencies, you can take control of your financial future.  

BitcoinIRA is a leading provider of self-directed IRAs dedicated to empowering investors like you. It´s platform offers the freedom to invest in Bitcoin and a wide range of cryptocurrencies within the tax-advantaged framework of an IRA.  

Why Choose BitcoinIRA?   

• Direct Ownership: Unlike Bitcoin ETFs, you directly own the underlying Bitcoin in your IRA.   

• Diversification: Invest beyond Bitcoin with a range of 75+ cryptocurrencies to potentially mitigate risk and align your portfolio with your investment goals.   

• Tax Advantages: Similar to regular IRAs, contributions to your BitcoinIRA may grow tax-deferred, potentially boosting your long-term returns. (Consult a tax advisor for specifics based on your IRA type).   

• User-Friendly Platform: The platform allows you to easily buy, sell, and manage your cryptocurrency holdings.   

• World-Class Custody: Your retirement account is held by Digital Trust®, which is a leader in alternative digital asset custody. Proprietary integrations with Digital Trust® enable proper custody of your assets.    

• Up To $250 Million Custody Insurance² Protection: Digital assets under custody are insured for up to $250 million.   

• 24/7 Self-Trading Platform: Buy and sell digital assets 24/7 in real-time with your IRA. 

Fidelity Crypto IRA vs. BitcoinIRA