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Fidelity Crypto Currency Investing (2021)


Fidelity Investments crypto trading account fees. How to buy or sell Fidelity crypto currencies mutual fund, blockchain fund, ETF, BAT, NEO, Ripple, Stellar, Cardano, Dogecoin, Ethereum (ETH), and Litecoin (LTC).



How to Trade Crypto Currency at Fidelity


If you’re thinking about trading Bitcoin with a Fidelity brokerage account, you’ll have some roadblocks, but it’s not impossible. Here’s how to tap into the cryptocurrency market with this broker:


Fidelity’s Bitcoin Mutual Fund


Fidelity recently launched the Wise Origin Bitcoin Index Fund. It invests solely in Bitcoin and is passively managed. The fund has a minimum investment of $100,000 and is intended for qualified purchasers who meet stringent criteria. Generally, this means you’ll need deep pockets and might have to be an institution. An institution is an investment group like a hedge fund, pension fund, or mutual fund. If you have first and last names, chances are you’re a retail investor and won’t be able to invest in this new fund.

The Bitcoin Index Fund is only available through Fidelity Digital Funds, a new business unit of the brokerage house.


Fidelity Blockchain ETF


If you can’t invest in Fidelity’s new Bitcoin fund, you could instead trade blockchain ETFs. These are exchange-traded funds that invest in stocks that are connected one way or another to blockchain technology.

The blockchain is a decentralized database that records in digital form every cryptocurrency transaction. Many companies are investing heavily in this new digital ledger due to its potential ability to combat fraud.


Fidelity Blockchain ETF


One blockchain fund we found on Fidelity’s site is BLOK, the Amplify Transformational Data Sharing ETF. This fund has half a billion dollars in assets and invests in over 50 companies. Examples include:

- Alibaba
- NVIDIA
- HIVE Blockchain Technologies
- Square
- PayPal
- MicroStrategy

BLOK has an expense ratio of 0.70% and has a grade of B from FactSet.


Webull as an Alternative to Fidelity


If neither the new Bitcoin Fund nor the blockchain ETFs appeal to you, you could instead open an account at a rival brokerage firm and trade cryptocurrencies directly. Webull is one broker that offers trading in cryptocurrencies.

During our investigation, we were able to trade cryptos on all of Webull’s software platforms. These include its desktop program, mobile app, and browser platform. Even better, we didn’t have to pay anything to trade these digital assets because Webull’s commission is $0.

Currently, there are 5 available cryptocurrencies at Webull. They are:

- Bitcoin
- Bitcoin Cash
- Ethereum
- Litecoin
- Dogecoin

To place a trade, you’ll need at least $1 in available cash because that’s the broker’s minimum investment in digital currencies.


How to buy bitcoin on Webull


Cryptocurrency trading on Webull’s mobile app comes with some really nice features, including a digital message board where traders can discuss the pros and cons of a particular currency. On the day we did our research, we found hundreds of posts on the Litecoin profile going back just a few days.

For actual trading, Webull provides a coin’s bid-ask spread on all three platforms. The trade price shown is actually the middle point between these two numbers and is not a real trade price. Trades can be placed either in dollar or coin amount. It is not possible to short sell cryptocurrencies at Webull. Learn more...


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Cryptocurrencies vs. Blockchain Funds


Trading spot cryptocurrencies comes with advantages and disadvantages compared to the blockchain ETFs. First is the fact that trading one cryptocurrency is an investment in a single asset, while the blockchain ETFs hold several assets. This means that the funds will be less volatile than a single cryptocurrency.

Second, cryptocurrencies at Webull are available for trading 24 hours a day, 7 days a week (with a one hour break each day at 5:30 pm, EST).

Third, trade settlement on cryptocurrency transactions takes place immediately. For blockchain ETFs, settlement is two business days (T+2).


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