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JIM ARMSTRONG: A relatively new feature of Fidelity Crypto, as offered by Fidelity Digital Assets, is the capability to transfer cryptocurrencies. Crypto transfers, just to make sure we’re all on the same page, is the ability to deposit or withdraw eligible cryptocurrencies between Fidelity Crypto and a third-party exchange or a wallet. You can also transfer crypto to another Fidelity Crypto account.
I do want to point out, however, that you cannot transfer crypto to or from a Fidelity Crypto IRA. We have a bunch of questions that have come in from livestream registrants and viewers over the past few months. Throw those on your screen right now.
A lot of people asking those like the ones you see here. How do I get my crypto from another firm to Fidelity? How can I transfer my crypto from its present custodian to Fidelity? How do I move crypto to Fidelity?
But then we also get the opposite, people saying, I bought at Fidelity, but how do I move it from Fidelity to a cold wallet? So, Rob, you and your team work tirelessly behind the scenes to build and fine-tune the transfer process. So at this point, I’ll turn it over to you to share your screen and walk people through the transfer process.
ROB MONTICCHIO: Great. Thank you, Jim. I’d be happy to show you. So to get started with crypto transfers, we ask a few questions to ensure the security of your account and enable you for the Transfers feature.
So taking a look at my screen here, first, we navigate into the crypto account. And I’ll scroll down and select Deposit/Withdraw Crypto. That’ll take me into the enablement experience.
We work with a vendor called Socure. And they securely capture and validate the details on your government-issued ID, like a driver’s license or passport. You’ll acknowledge the terms and conditions. I’m going to choose a driver’s license.
And then you’ll take photos of the front and rear of your ID. Now take your best selfie. I’ll choose Submit. And then my ID submission is complete.
There’s one last step. So in accordance with Know Your Customer regulations, we also ask a few questions regarding your use of the Transfers feature. Your responses to these questions will not have an impact on your ability to transfer. And I’ll select answers for how often I expect to transfer and how much I hope to transfer.
And then I am set up for deposits. Initially, we will only set you up for deposits. But you can choose to set up withdrawals as well. Doing so will require you to choose a withdrawal security level. So Standard allows withdrawals up to $2,000 per day. And Advanced withdrawals increase your ability to $25,000 per day.
Advanced withdrawals will require enrollment in an authenticator app. And that’s where you enter a two-factor authentication code at the time of withdrawal. And that’s it. I’m all set up for deposits and withdrawals.
Now that we’re set up for transfers, let’s initiate a deposit. I’ll come down here and choose Deposit/Withdraw Crypto and Deposit. First, I’ll select the asset I want to transfer. When making a transfer, network selection is very important. Fidelity Crypto only accepts deposits on the main layer 1 network of the coins that we support, like the Bitcoin or Ethereum networks.
Some exchanges will allow you to select other proprietary networks for transferring coins. Fidelity Crypto does not support these other networks and will not be able to recover deposits made on them. So be sure to select the layer 1 network for the coin you’re transferring.
Additionally, crypto wallet addresses are very long and complex. We strongly recommend that you first conduct a deposit test to make sure you’ve entered all the details correctly. This means transferring a very small amount of coin first and verifying that the deposit successfully transfers to your Fidelity Crypto account before making larger transfers.
With that in mind, you’ll now be able to copy the Fidelity Crypto deposit address that’s been generated for your account and paste the address into the withdrawal experience of the exchange or wallet where you currently hold this coin. As you can see, I’m blurring out my address here so that no one feels tempted to send me some coin. For your convenience, we also offer the address as a QR code, which can easily be scanned.
Now you’ll complete the initiation of your deposit in whatever application you currently use to manage the wallet where you hold this coin as a withdrawal from that wallet. As soon as we see a blockchain confirmation, you’ll receive a notification that the deposit has been started into your Fidelity Crypto account. Once fully confirmed, we’ll alert you that the deposit is complete, and you’ll see the coin added to your account.
There’s one last housekeeping item for those closely tracking their tax lots. You’ll be able to update the cost basis information that’s the original value or purchase price of the coin, plus fees, in the Account Activities tab on Portfolio Summary. To show you, I’ll switch accounts, navigate to Activity, and choose a previous deposit.
I’ll scroll down and choose Update Cost Basis. And then I’ll select the lot that I want to add cost basis details for. You should be able to find these details, like the original purchase price, date and time in the wallet or exchange that you just transferred from.
I saw a question come in about moving crypto from Fidelity to a cold wallet. And that’s certainly possible. To do so, you’ll need to have the wallet address for your cold wallet and confirm the network you’re transferring on. First, navigate to your crypto account summary. Scroll down to Deposit/Withdraw Crypto. And then select Withdraw Crypto.
Next, select the asset you’d like to withdraw. Before you can withdraw to any external wallet, you’ll first need to add the wallet address to your address book. To keep your account secure, Fidelity Crypto requires a 48-hour activation period before withdrawals can be executed against a newly added address.
When adding a new wallet, be sure to verify that the address is correct and that you trust the source that you copied or received the address from. Transfer requests from new online connections or entities that are advertising rates of returns that are too good to be true can be risky. So be sure to protect yourself from fraud or scams.
Once acknowledged, I’ll enter a nickname for this address. And then I will paste the address into the form. I can also use the QR code scan functionality to capture the address with my camera.
Lastly, choose the owner of this wallet, either yourself or, if it’s another person or entity, enter their full name and the country of residence. And then I’ll choose Review. I’m presented with the details of the wallet. And I’ll choose Save.
Now the address will be available in 48 hours. Once the address is added, you’ll be able to withdraw to it by tapping Withdraw Crypto on Portfolio Summary. I’ll choose ETH.
You can see the address I added is pending. But I’ll use my previously added wallet to make a withdrawal. You can use the selector in the middle to switch between coin or dollar denomination.
In this case, I’ll withdraw $1 of ETH. I’ll be alerted if fees are currently high on the blockchain. And then I’ll review the details of the transaction. In this case, I see that I’m withdrawing $1 with $0.06 worth of fees.
And then I’ll choose Submit. And that’s it. The withdrawal is on its way.
JIM: Rob, that was perfect. Thank you for doing that. What we love to also remind people watching is, if you’ve got ongoing questions about Fidelity Crypto or about cryptocurrencies in general, questions about terminology, or if you want to watch older episodes of the Covering Crypto Livestream, we would humbly suggest that you check out Fidelity.com/Crypto. That is a great resource if you’re looking to learn a little bit more. Also, if you’re looking to learn a little bit more about what Rob was just talking about when it comes to transfers, we would suggest you check out Fidelity.com/CryptoHelp. Tons of great resources on that page, as well, to help you get your questions answered about how to use Fidelity Crypto.
