Fidelity Bitcoin (BTC) Trading (2021)

Fidelity Bitcoin trading service. How to buy a Fidelity Bitcoin mutual fund, blockchain fund/ETF/stock.

Cryptocurrencies with Fidelity

From the launch of Bitcoin to the marketplace by the mysterious person(s) syeudonymed “Satoshi Nakamoto” in 2019, blockchain technology and cryptocurrency have taken the world by storm. In a short 11 years and some change, this sector has sprouted over five thousand different types of cryptos and has grown Bitcoin to over a $1 trillion market cap as of this week, making it the fifth largest currency on the planet. So, how do we, as Fidelity investors, get in on the action?

What is Crypto?

In layman’s terms, cryptocurrency is digital currency that was created for efficient and secure peer-to-peer transactions. These virtual “tokens” are not guaranteed by any bank, but are treated as an asset all the same. Blockchain technology is the tech that powers the network of cryptos by verifying every purchase with public ledgers. This system is backed by a powerhouse of network validation processes that make the currency nearly impossible to manipulate or control from a centralized location. Consequently, this makes it the first form of a worldwide currency that remains immune to government interference.

Trading Bitcoin with Fidelity

Out of the thousands of crypto currencies now available, any one of them through various brokers can be owned and treated as an asset just as any other national currency. This can technically be accomplished with Fidelity in 2 different ways, but you will run into several roadblocks.

1. Bitcoin Mutual Fund

For the most part, Wall Street banks have avoided this sector due to laundering and illicit activities that occur within the currency. However, that changed in August of last year when the CEO of Fidelity, Abigail Johnson, launched the first ever passively managed, strictly bitcoin mutual fund. This is available to “the public”. The caveat to that statement is the minimum investment of $100,000 with stringent qualification processes in order to be able to invest. The hard truth is that this fund, available exclusively through Fidelity Digital Funds, is difficult to benefit from without access to a massive account, or becoming a member of one of the currently investing institutions that include mutual funds, family funds, or pension plans.

2. Blockchain ETFs

Traditional ETF’s are a collection of holdings in a specific field, industry, or market sector. This makes investing in an entire selection of companies possible with the purchase of a single share. Blockchain ETF’s are similar as they are a collection of holdings in corporations specifically involved in the blockchain technology that is the backbone of the cryptocurrency market. One of the most popular of these ETFs offered by Fidelity, Amplify Holding’s BLOK, includes the following companies amongst others: PayPal, Alibaba, Square, Amazon, and Microsoft.

One of the benefits of holding shares of this ETF is that the investor may own a piece of the market influencing this disrupting financial technology while generally not having to undergo the sharp turns more often associated when dealing in a single currency. Still, the two-day (T+2) settlement period dampens the mood as well as the limited trading time restricted to traditional market hours. There is yet another option with a competing broker to Fidelity that provides the inverse of the aforementioned pros and cons.

Bitcoin Trading with Webull

If Fidelity’s crypto-based mutual fund and ETFs are not your style (and a daring capitalist would prefer to have more control of their crypto investments), Webull offers such an option. This broker offers the following cryptocurrency options:

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Dogecoin (DOGE)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Cardano (ADA)
  • Stella Lumens (XLM)
  • Dash (DASH)
  • Zcash (ZEC)

These spot cryptos offer the advantage of unlimited trading (assuming one has the capital to continue) as well as 24-hour trading capabilities excluding set weekend hours and a single hour in the afternoon beginning at 5:30 EST. There are $0 commissions on all trades with a small 100-basis point spread on either side of the trade, equaling 2% of all invested capital in the position.

How to buy bitcoin on Webull

Finally, along with other robust features, the message board for each currency opens a very lively discussion for traders to discuss their opinions of the asset throughout the day and night. It is not unheard of for the boards to have hundreds, if not, thousands, of posts per day for each currency. Learn more...

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Fidelity Bitcoin Trading Conclusion

Although Fidelity is somewhat of a pioneer for major banking systems when it comes to digital currencies, its selection for the average investor is sparse at best and inaccessible at worst. There are a few tempting options for the longer-term investor, but those who desire control of investments, such as pattern day traders, may consider investing elsewhere with brokers such as Webull.