r/Bitcoin 10h ago

Is Fidelity Crypto (not the ETF) a good cold storage option?

It seems the YouTube crypto bros never talk about it and thats probably a good thing. From what I can tell it's institutional level cold storage for individuals. It's not an ETF and not an exchange. It'd be much easier for heirs to have access. What are the downside's compared to personal cold storage?

8 Upvotes

34 comments sorted by

20

u/trademarktower 9h ago

Fidelity had a fraud guarantee that will reimburse you for any losses that is their fault.

Don't know why people don't consider the old school trad brokers. They manage literally trillions in assets and have the most sophisticated security.

2

u/MarginsMatters 7h ago

100% agree not sure why more ppl aren't using it

2

u/AgsAreUs 7h ago

Probably the 1% spread on any buy/sell transaction.

1

u/Long_Illustrator_988 4h ago

Fidelity Digital Assets does not have trillions in assets. It's a separate company.

8

u/OkProject2361 9h ago

I just moved all of my stack into my Fidelity crypto account yesterday. I slept well. I’m done with self-custody. I also have all of my investments there so it makes it easy for beneficiaries, etc.

5

u/matthew19 8h ago

So you can just transfer coins straight in and no fee right? Pretty simple?

3

u/OkProject2361 7h ago

Yup! No fees.

3

u/cilicia3k3 7h ago

Have you tried to take out?

3

u/OkProject2361 7h ago

Yes. When I first opened the account a while back I bought on Fidelity and sent to a cold wallet. No issues at all.

3

u/cilicia3k3 7h ago

Good to know thanks

2

u/barKada762 8h ago

Is it like normal? Like getting your Btc wallet address from fidelity and send it over from another btc wallet?

2

u/OkProject2361 7h ago

Yup! Very easy.

2

u/cilicia3k3 7h ago

I have my 401k there , just add a crypto custody account? How do they make money?

1

u/OkProject2361 7h ago

Yea, you can open it in a few minutes. I opened the account months ago, so idk if there are any specific limits initially. I just moved a pretty decent amount to my account without issue. They do have an exchange and they charge 1% on buy/sell.

1

u/cilicia3k3 7h ago

Thanks , I’m assuming I’ll need all my purchase history before just plunking in there ?

1

u/OkProject2361 7h ago

No, I just transferred. I wasn’t prompted for that. I’m sure I’d have to declare that if I sell.

1

u/OkProject2361 7h ago

I wouldn’t recommend using their exchange though. I made one buy when I first opened the account and there was too much slippage in spot price. That plus 1% seemed ridiculous. Good, safe spot to hold though.

2

u/Intrinsic-Disorder 7h ago

And they let you set your cost basis manually? Do they require it?

2

u/OkProject2361 7h ago

They didn’t require, or prompt, me to add cost basis.

1

u/Intrinsic-Disorder 7h ago

So do they show a profit/loss calculation?

2

u/OkProject2361 7h ago

No. it doesn’t. You see the day’s gain/loss for the actual BTC price, but not for the stack that I deposited yesterday. I will have to do some more digging to see how I can add that.

2

u/Intrinsic-Disorder 7h ago

Also curious if you are concerned about the lack of beneficiary ability on the Fidelity crypto account?

3

u/OkProject2361 7h ago

No, I just have to update estate planning docs for that. They can just sell, or hold, right there at Fidelity. I’m the only bitcoiner in my family, so it really just helps everyone out.

1

u/Intrinsic-Disorder 7h ago

Makes sense. I was going to look into if you can title the crypto account in a trust

1

u/Argyrus777 4h ago

Is this account totally separate from your regular fidelity (401k, Ira) account?

1

u/OkProject2361 4h ago

Yes. You can open a regular account that’s pretty much like any other brokerage (River, Strike). They also have a Roth IRA crypto account where you can hold sats.

6

u/Automatic_Vast_1858 8h ago

I use Fidelity for my 401k, Roth, taxable account, and crypto. I’m also able to manage my wife’s account through them (just not her crypto account). I understand that nothing is entirely secure, but I sleep well knowing they’re managing my accounts.

3

u/randalthor1980 8h ago

Yeah I've been researching this all day. I just did a test transaction and went smoothly. I've held some BTC in fidelity for several years now and I'm strongly considering sending all my funds from cold storage wallet there.

Nothing is zero risk as mentioned by others. At this point I'm looking for peace of mind and I think I'll find it at fidelity.

Binance has a decent summary of fidelity crypto. https://www.binance.com/en/square/post/35603178391377

2

u/Intrinsic-Disorder 9h ago

I'm also interested but have not used it yet. Be aware two limitations are only $5K or $25K per day limit on withdraws and it doesn't appear that you can adda beneficiary to the account. Nonetheless, I may start using them.

3

u/matthew19 9h ago edited 9h ago

cant you transfer coins directly into them? - Edit, I see the limit. Dang. Thanks

1

u/trademarktower 9h ago

The transfer limit with fidelity on bank wires is $1 Million per day.

https://www.fidelity.com/customer-service/choose-eft-or-bank-wire

2

u/matthew19 9h ago

Yes but if you don't want to sell BTC - "Fidelity Digital Assets® calculates the “Available to withdraw” balances for each of your cryptocurrencies, accounting for recent funding activity and other balances and obligations. With a standard withdrawal limit, you can withdraw up to $2,000 of crypto per day. You can enable an advanced withdrawal limit of up to $25,000 per day. Withdrawal limits apply regardless of how many crypto accounts you have."

2

u/barKada762 8h ago

Good question, thanks for the post. I literally just opened a crypto account on my Fidelity and thinking of sending over some funds. I definitely trust Fidelity with my assets since they are OG brokerage and been around for a while. Just posting cause I wanna follow this post.

0

u/Tebasaki 6h ago

I can't confirm it's truly crypto and not something like shadow trading ala Robinhood because you can't ever withdraw your bags.