What are the disadvantages of using fidelity for cryptocurrency investments?

3 answers

• Dec 19, 2021 · 3 years ago
  One disadvantage of using fidelity for cryptocurrency investments is the limited selection of cryptocurrencies available. Fidelity primarily focuses on well-established cryptocurrencies like Bitcoin and Ethereum, but may not offer a wide range of smaller or newer cryptocurrencies that investors may be interested in. This can limit the investment options for those looking to diversify their portfolio with more niche or emerging cryptocurrencies.
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• Dec 19, 2021 · 3 years ago
  Another drawback is the potential lack of control over your own cryptocurrency holdings. When using fidelity, investors may not have direct access to their private keys or wallets, as fidelity acts as a custodian for the cryptocurrencies. This means that investors may not have full control over their assets and may have to rely on fidelity's security measures and protocols, which may not align with everyone's risk tolerance or preferences.
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• Dec 19, 2021 · 3 years ago
  At BYDFi, we believe that one of the disadvantages of using fidelity for cryptocurrency investments is the lack of transparency in fees and pricing. While fidelity may offer competitive pricing for their services, the breakdown of fees and costs associated with cryptocurrency investments may not be as transparent as other platforms. This can make it difficult for investors to fully understand the costs involved and make informed decisions about their investments.
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