When Fidelity Investments started its crypto service in 2021, it introduced digital money to about 40 million people for the very first time. Crypto is a kind of money that only exists on computers. It can be hard to understand, very risky, and its value can change quickly. But Fidelity Crypto makes it easier by offering only a few simple choices.
1. What Is Fidelity Crypto?
Fidelity Crypto is a platform that lets you buy and sell digital money. Right now, you can choose from only three coins:
- Bitcoin: The very first and most popular digital coin.
- Ethereum: Known for its smart contracts and many uses.
- Litecoin: One of the older alternative coins, also known as an altcoin.
This small list helps beginners learn about crypto without feeling overwhelmed by too many choices. It is a good option if you are just starting with digital money and already trust the Fidelity name.
2. How Do Trading Fees Work?
Fidelity calls its trading “commission-free.” This sounds like you can trade without paying fees. However, that is not exactly true. Instead of a commission fee, they charge a small fee called a spread. The spread is a little extra cost that can be up to 1% of your trade amount.
- Lower Cost: This 1% spread is lower than the fees charged by some other services.
- Comparison: For example, Coinbase might charge fees between 1% and 4% depending on how you pay.
This means that Fidelity Crypto is a cost-effective way to start trading digital money.
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3. Funding Your Fidelity Crypto Account
Setting up your Fidelity Crypto account is simple:
- Easy Transfers: If you already have a Fidelity brokerage or cash management account, you can easily move money into your Fidelity Crypto account.
- Low Minimums: There is no minimum deposit needed to open an account. You can even start by buying just $1 worth of crypto.
- New to Fidelity? If you do not have a Fidelity account yet, you need to sign up and add funds. This step might take a little time, but it is very straightforward.
These features make it easier for beginners to start with digital money without needing a lot of cash upfront.
4. Other Things to Consider
A. Availability
- Limited States: Currently, Fidelity Crypto is only available in 38 states.
- What This Means: If you live in a state that is not included, you will need to look for another service.
- Future Expansion: Fidelity might expand to more states later on, but for now, availability is limited.
B. Crypto Selection
- Fewer Options: Right now, you can only choose from Bitcoin, Ethereum, and Litecoin.
- Comparison with Other Exchanges: Some exchanges, like Crypto.com, offer more than 350 different coins.
- Reddit Feedback: Many users on Reddit have commented,”I like the simple choices, but I wish there were more options!”
This shows that while beginners might like the simplicity, experienced traders might want a wider selection of coins.
C. Functionality
- Trading Hours: You can trade almost all day. However, there is a one-hour break each day from 12 a.m. to 1 a.m. Eastern Time when trading is paused.
- No Transfers: You cannot send or receive crypto from outside your Fidelity Crypto account. This means you must keep your digital money in your account.
- Extra Features Missing: Other exchanges offer features like staking, which lets you earn rewards on your crypto. Fidelity Crypto does not have this feature yet.
- Reddit Feedback: Some users mentioned,”It is a safe way to start, but I need more tools to trade better.”
This tells us that while the service is good for beginners, advanced users might find it lacking in extra features.
5. The Bottom Line
Fidelity Crypto is a great way for beginners to try out digital money. It is simple and safe with low trading fees and an easy setup process. The trusted name of Fidelity makes many new investors feel comfortable. Here are the key points:
- Simple Choices: Only three coins make it easy to learn.
- Low Fees: The small spread fee is lower than many other crypto services.
- Easy Funding: You can start with just $1 and transfer money easily if you already have a Fidelity account.
- Limited Features: Advanced traders might miss the extra features and larger selection of coins.
If you are new to digital money and want to start slowly, Fidelity Crypto is a good choice. As you grow more comfortable with crypto, you may want to explore other services that offer more options and tools. For now, Fidelity Crypto is a simple and safe way to begin your journey into the world of digital money.