Fidelity Opens Bitcoin Trading Amid Banking Crisis
Fidelity Investments, one of the largest financial firms in the world, has opened its cryptocurrency platform to the public. While this move may seem like a welcome addition, it comes at a time when trust in large institutions has been shaken to the core.
Customers can now buy and sell Bitcoin through Fidelity Crypto, but they will not be able to transfer it to self-custody wallets. This means that investors are relying on Fidelity to keep their Bitcoin safe, which is a risk that they need to be aware of.
According to a company announcement, customers will be charged a 1% spread on trades, with no additional fees. Trading is only available to U.S. residents over 18 in eligible states.
Critics have argued that Fidelity’s move into cryptocurrency is risky, especially given the highly volatile nature of the digital asset market. Some senators have even written to the company to express their concerns.
However, Fidelity seems undeterred by this criticism. It is worth noting, however, that relying on third-party custodians like Fidelity leaves a security hole. If investors want to have full control over their Bitcoin, they need to hold their own private keys.
Considering recent events, investors should be cautious about the risks associated with third-party custody. While Fidelity’s entry into the Bitcoin market is significant, it is not without its dangers.