Robinhood Crypto Review. How to Buy Crypto on Robinhood?
Robinhood is a popular broker that offers everything from commission-free stocks and ETFs to options trading. Robinhood also now offers free cryptocurrency trading with a pretty good variety of coins to choose from.
Are you interested in learning how to trade cryptocurrencies on Robinhood? Are you wondering if it is possible to day trade crypto on Robinhood? In this review, we will explain Robinhood’s crypto fees, how to trade on the platform, and potential rules and limitations. We will also explain what cryptocurrencies you can trade on Robinhood.
Start trading cryptocurrencies right now with Binance!What is Robinhood Crypto?
Robinhood is an online broker and investment company that provides various services for the stock market. The platform was designed to make investing more accessible to Millenials and Gen Z traders.
The platform is known for having a very user-friendly mobile app, the ability to visualize your portfolio, and offering excellent news in the world of trading. On the platform, there are many different types of trading instruments available, including stocks, commodities, options, and cryptocurrency. Robinhood Crypto is regulated by the Financial Industry Regulatory Authority (FINRA) and is currently only available in the United States. The platform also offers standard and Robinhood Gold accounts for more regular traders.
How Does Robinhood Crypto Work
One of the biggest perks of Robinhood is that the platform does not charge commission fees for cryptocurrency purchases. So how exactly does the platform make any money?
It all comes down to the platform’s business model. Robinhood does not directly put fees on its userbase, but the company does make money from various market makers and third-party trading firms that are responsible for paying for the exchange’s order flow. About 75% of Robinhood’s revenue comes from payments for order flow. Robinhood is also constantly earning interest revenue from securities and margin loans offered by the platform. Just as well, Robinhood also has its own premium service called Robinhood Gold that users will pay for in order to get extra perks, tools, access to margin, money management, etc.
Robinhood Crypto Wallet
Just recently, Robinhood announced that over 1.6 million people are currently on their crypto wallet waitlist. Robinhood Markets announced that their crypto wallet, which will make it possible for users to move various types of support digital currency in and out of their broker account, will launch in the first quarter of 2020. This is certainly exciting for those who regularly trade crypto, and it could also be a sign that more cryptocurrencies will soon be added to the Robinhood platform.
Can You Day Trade Crypto on Robinhood?
It is possible to trade cryptocurrency 24 hours a day, 7 days a week on Robinhood. It’s worth noting that there are some exceptions to this, as scheduled maintenance may periodically occur. Just as well, there are scheduled crypto maintenance times that occurs from 5:29 pm to 5:40pm ET and 11:57pm to 12:09am ET on a daily basis. This scheduled maintenance is used to add new features, repair bugs, and keep accounts maintained. Users can place crypto trades during this downtime, though pending limit orders will pause until maintenance is complete. Even in the context of day trading, this downtime is very much negligible.
Robinhood Crypto Advantages
There are many advantages to using Robinhood for cryptocurrency trading, including the following benefits:
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You don’t have to deal with an account minimum.
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You can enjoy a streamlined interface and one of the most user-friendly apps in the crypto space.
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You can access all of the major cryptocurrency and trading them (almost) 24 hours a day, 7 days a week as a crypto day trader.
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Robinhood does not charge spreads or direct commission fees to trade cryptocurrency on the platform.
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The platform will soon unveil Robinhood Crypto Wallet, which will make access to cryptocurrency even easier on the platform.
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Outside of crypto, one can also exchange stocks, gold, options, ETFs, and more.
Robinhood Crypto Trading Platform Overview
Robinhood Crypto is a trading platform and cryptocurrency exchange.
This brokerage offers tons of different features, including:
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No investing minimums.
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Seven different coins are available for purchase.
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Access to excellent visualization and research tools.
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The ability to purchase fractional shares as needed.
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Free ATM withdrawals around the U.S.
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Low-cost margin trading.
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Automatic dividend reinvestment for stocks and crypto.
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Recurring crypto investment options.
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Commission-free investing.
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Options investing.
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Access to a large network of cryptocurrency traders.
Cryptocurrencies Available on Robinhood
While Robinhood does offer access to some of the most popular altcoins available, the current selection is very limited. Platforms like Webull and Coinbase have a significantly wider range of cryptocurrencies available. That being said, those who only want to invest in a few different types of crypto will do well with Robinhood’s options.
| Trading pair | Industry | |
|---|---|---|
BTCUSD |
Payments |
|
ETHUSD |
Blockchain platform |
|
DOGEUSD |
Payments, Meme coin |
|
Bitcoin Cash |
BCHUSD |
Payments |
Bitcoin Cash |
BCHUSD |
Payments |
Bitcoin SV |
BSVUSD |
Payments |
LTCUSD |
Payments |
|
Ethereum Classic |
ETCUSD |
Blockchain platform |
Robinhood Crypto Fees
Robinhood does not charge any commission or trading fees to trade on the platform with crypto. The platform also does not charge spreads for trading fees. Withdrawals and deposits are completely free. There are no commission fees for assets from the U.S. market. It’s worth noting that it is not yet clear if the upcoming Robinhood Wallet will incur any fees.
Robinhood VS Webull Crypto Fees
Robinhood and Webull are both fantastic platforms for trading cryptocurrency. Neither platform charges fees for cryptocurrency trades, purchases, etc. However, it’s worth noting that one cannot transfer cryptocurrency out of their accounts on Webull, while Robinhood is rolling out its own cryptocurrency wallet to make transfers easier.
| Robinhood | Webull | |
|---|---|---|
Crypto fees |
$0 |
$0 |
Is There a Robinhood Crypto Trading Free?
No. Robinhood does not charge a crypto trading fee. Trades conducted on the platform are completely free, and there are no hidden fees for doing so.
How to Buy Crypto on Robinhood
Purchasing cryptocurrency on Robinhood is quite simple. We recommend taking the following steps to start buying crypto on the platform.
Step 1
Start by creating your Robinhood account. You can do this by downloading the app to your smartphone and selecting Sign Up. You will need your social security number, a driver’s license (or passport), and your personal information to sign up. The approval process might take a while, but it is usually no more than a day.
Step 2
Fund your account. If you did not fund your account in the signup phase, now is the time to do it. Navigate to your profile in the app. Select the hamburger navigation in the corner of your screen. Select Transfers and then Transfer Money. Deposit as much USD as you’d like into your account and select Continue. You can set up recurring deposits here as well.
Step 3
Choose your crypto and study the market. Navigate to the magnifying glass on your homepage. You can select Crypto from Trading Lists to see all of the currently available cryptocurrencies, or you can search your crypto of choice’s ticker in the search function.
Step 4
Select your cryptocurrency. Select Buy on your crypto’s market page. Choose whether you want to place a market order, limit order, or recurring investment. Choose whether you want to place an order in USD or by coins. Input how much you would like to buy, then select Review. You will be able to see how much you are paying and how much crypto you will receive. Select Submit, and you’ve just purchased crypto on Robinhood!
Robinhood Account Opening
How to Open Account on Robinhood
Getting into Robinhood is relatively simple. You will need to open a brokerage account to get the process started. To do this, simply download the Robinhood app and hit Sign Up. From there, you will need to provide a social security number, your account funding bank information (though this can be done later), and a mobile device. Input your contact information, social security number, citizenship status, marital status, and employment status, among other personal information. Submit your application and simply wait a bit to be approved. This usually takes less than a day to complete.
How Can I Withdraw Crypto From My Robinhood Account?
If you have a Robinhood Instant account, you will be able to instantly access your money for up to $1,000 to trade crypto. Any remaining funds will be available for withdrawal after a settlement period, usually just a few trading days.
Robinhood Gold accounts will be able to access all of their funds instantly. Your crypto buying power may depend on your particular account. Currently, coin withdrawals are not possible, but Robinhood will be rolling out their Wallet system by next year, so just be patient!
How Much Money Do I Need for a Start?
You don’t need anything more than a dollar to start if you wish. There is no account minimum to trade on Robinhood, but you obviously need something to get started. If you want to become a crypto day trader, you can open an account with as little as $100.
However, many crypto day traders will recommend investing at least $500 to have proper stop-loss levels. However, it’s worth noting that cryptocurrency trading is very volatile and high-risk. Only invest the amount of money you are comfortable with potentially losing. We recommend setting up a risk assessment of your capital before starting this process.
Summary
Robinhood is a popular broker and cryptocurrency exchange in 2023. Known for its super user-friendly mobile application and access to a wide range of assets, users can create quite diversified portfolios that include cryptocurrency.
Robinhood is a commission-free exchange, though it's worth noting that some fees do apply. Users will gain access to Robinhood's crypto wallet, where users can buy, sell, trade, and transfer out cryptocurrencies. If needed, users can also use Robinhood to day trade crypto. Unfortunately, Robinhood does not have the most diverse range of cryptocurrency. The platform currently only offers seven different coins – Bitcoin, Ethereum, Dogecoin, Bitcoin Cash, Bitcoin SV, Litecoin, and Ethereum Classic. This might be problematic for more advanced cryptocurrency traders. However, those who don't need a ton of variety will likely be fine with the current selection.
Robinhood is quite lucrative as a crypto exchange because it charges absolutely no cryptocurrency buy or sell fees. Many exchanges can change upwards of 5% just to make a purchase, so Robinhood is definitely worth looking into. A few great alternatives to Robinhood include Webull and Coinbase, respectively.
Opening an account on Robinhood is very simple, but one will be subjected to a pretty rigorous verification process. Just make sure you have your ID ready, and you should be verified within a day.
FAQs
How do I contact customer support on Robinhood?
Getting in touch with Robinhood’s customer support isn’t too difficult. You can contact the support team from either the mobile app or website 24 hours a day.
Will Robinhood ever launch outside of the United States?
According to a statement posted by Robinhood on their FAQ page, the platform does not have any plans to launch outside of the United States as of January 2024. However, it’s worth noting that the platform has referenced a desire to expand globally, though they are currently more committed to focusing on improving their customer experience and range of investable assets for their U.S. customers. If this is a problem, there are plenty of exchanges that offer crypto to non-U.S. traders.
Is it possible to have more than one Robinhood account for trading crypto?
Unfortunately, no. Robinhood customers can only create one account per customer. There is an intensive identification process tied to one’s Robinhood account, and each account is tethered to a social security number. In order to access your original account, you’ll need to get in touch with customer service instead of creating a new application. If you happen to forget your password, simply tap the Forgot Password button on the main login page of the app or website to fix your issue. In the end, there really is no point in having more than one Robinhood account, as one can create a diverse portfolio all from one account.
How do I close my Robinhood application or account?
Closing an application or Robinhood account is fairly simple. If you have started an application but wish to withdraw, simply contact customer service. If you want to close an existing account, transfer all of your funds to your bank account. From there, you can get in touch with customer service to fully remove your account from the platform. You will need to wait for your transfer request to be completed before your Robinhood account can be deleted.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.