What are the risks associated with using settled cash in fidelity for digital asset trading?

1 answers

• Dec 25, 2021 · 3 years ago
  While settled cash can be used for digital asset trading in fidelity, it's important to understand the risks involved. One potential risk is the volatility of the digital asset market. Prices of cryptocurrencies can experience significant fluctuations, and if you use settled cash to buy digital assets, you may be exposed to potential losses if the market goes down. Another risk is the lack of liquidity. Once you use settled cash to purchase digital assets, it may take time to convert those assets back into cash if you need to access your funds quickly. Additionally, using settled cash means that you won't have the opportunity to earn interest on your cash holdings. If you keep your cash in a traditional bank account, you may be able to earn some interest on your balance. However, with settled cash in fidelity for digital asset trading, you won't be able to earn any interest. Therefore, it's important to carefully consider these risks and weigh them against the potential benefits before using settled cash for digital asset trading in fidelity.
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