Can you day trade crypto on Robinhood without $25K?
Are you planning to start crypto day trading on Robinhood without having $25,000 in your account? Well, answering the question without familiarity with the rules can be quite challenging. To understand the day trade crypto on the Robinhood scheme, you need to know the day trading pattern, how it works, etc.
If you're looking for an answer to can you day trade crypto on Robinhood, you’re on the right page.
It is possible to day trade cryptocurrency on Robinhood without having $25,000 in your account. There's no minimum account balance requirement, but it's crucial to have a good understanding of the market and trading strategies. Cryptocurrency markets are highly volatile and unpredictable, so investing only what you can afford to lose and managing your risks is essential.
Scroll down this article for more details and clarity about “Can you day trade crypto on Robinhood”, detailing Robinhood crypto fees, Robinhood day trading and other details.
Robinhood website
What is Robinhood Crypto?
Robinhood Crypto is a commission-free cryptocurrency trading platform offered by Robinhood Financial LLC, a registered broker-dealer with the U.S. Securities and Exchange Commission (SEC). The platform allows users to buy, sell, and hold various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, and others.
The platform does not charge commissions on trades; it may generate revenue through other means, such as interest on cash balances and selling order flow to market makers. Users should also be aware of the risks associated with cryptocurrency trading, including high volatility, security risks, and the potential to lose funds.
Can you day trade crypto on Robinhood?
Yes, you can day trade crypto on Robinhood. Robinhood is a popular trading platform that allows users to buy and sell cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. The platform also supports other assets like stocks, options, and ETFs.
When trading crypto on Robinhood, users can place market orders or limit orders to buy and sell their preferred cryptocurrencies. The platform offers real-time market data, charts, and news updates to help traders make informed decisions. Since it offers commission-free trading, it is entirely free on Robinhood; you can trade cryptos as frequently as you want.
Can you day trade crypto on Robinhood without 25k?
Yes, you can day trade crypto on Robinhood without having $25,000 in your account. The pattern day trading rule, which requires traders to have at least $25,000 in their account to make more than three-day trades in a rolling five-day period, does not apply to cryptocurrencies.
The pattern day trading rule is a regulation imposed by the Financial Industry Regulatory Authority (FINRA) on traders who frequently trade in stocks or options. However, this rule does not apply to cryptocurrencies because they are not considered securities under U.S. law.
While the pattern day trading rule does not apply to crypto trading, it's important to note that day trading can be risky and may result in significant losses. It's always a good idea to research, set reasonable goals, and develop a sound trading strategy before engaging in any type of trading activity, including day trading.
Robinhood сrypto day trading pros and cons
👍 The benefits of Robinhood crypto day trading are as follows:
• Commission-free trading: Robinhood Crypto offers commission-free trading for cryptocurrencies, which can be significant cost savings for traders.
• User-friendly platform: Robinhood Crypto has a simple and easy-to-use platform that can appeal to new or beginner traders.
• Wide selection of cryptocurrencies: Robinhood Crypto supports several popular cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and more.
• Trade with your convenience: They have an excellent interface that allows you to start trading conveniently via the platform's app. Since you are trading from the app, you can trade while on the go.
• Real-time market data: The platform provides real-time market data, charts, and news updates to help traders make informed decisions.
👎 The cons of crypto Robinhood day trading are as follows:
• Limited functionality: Robinhood Crypto does not allow users to transfer cryptocurrencies to or from external wallets. It does not offer advanced trading features such as stop-loss orders or margin trading.
• Limited availability: Robinhood Crypto is currently only available in certain states in the United States, and it does not support all cryptocurrencies.
• Security concerns: While Robinhood Crypto has taken steps to secure its platform and users' funds, the platform has experienced security breaches.
How to day trade crypto on Robinhood?
Here are the steps to day trade crypto on Robinhood:
Sign up for a Robinhood account through their website or mobile app. You will need to provide some personal information and verify your identity.
How to open an account on Robinhood
Enter details of your address for identity verification purposes.
How to open an account on Robinhood
After you've opened your account, you'll need to fund it with cash to start trading. You can link your bank account and transfer funds to your Robinhood account.
To trade cryptocurrencies on Robinhood, you'll need to enable the Crypto feature on your account. You can do this by going to the app's Account tab and tapping "Add a Product."
Once you've enabled crypto, you can choose the cryptocurrency you want to trade. Robinhood currently supports Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Dogecoin, and Ethereum Classic.
To place a trade, go to the specific cryptocurrency page and select either "Buy" or "Sell." You can choose between market orders and limit orders and enter the amount of cryptocurrency you want to buy or sell.
After you've placed a trade, you can monitor it in the app's order history section. You can also set up price alerts to notify you when the price of a cryptocurrency reaches a certain level.
Remember that day trading can be risky and may result in significant losses. It's essential to research, develop a sound trading strategy, and set reasonable goals before engaging in any trading activity.
What crypto can you day trade on Robinhood?
If you are starting to trade crypto on Robinhood, you must know the cryptos you can trade on the platform. At the same time, being familiar with trading pairs is important. Robinhood is one of the leading platforms that provide the benefit of commission-free trading (as discussed above) with a wide range of coins. Some of the cryptos that you can day trade on Robinhood are given in the table below:
| Cryptocurrency | Trading Pairs | Mode |
|---|---|---|
Bitcoin |
Payments |
|
Ethereum |
Blockchain platform |
|
Dogecoin |
Payments, Meme coin |
|
Bitcoin Cash |
Payments |
|
Bitcoin SV |
BSV/USD |
Payments |
Litecoin |
Payments |
|
Ethereum Classic |
Ethereum Classic |
Robinhood vs competitors
| Robinhood | eToroX | Binance US | |
|---|---|---|---|
Supported coins |
Bitcoin, Ethereum, Dogecoin, Bitcoin Cash, Bitcoin SV, Litecoin and Ethereum Classic |
Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Stellar, Tron, Dash, Cronos, Ethereum Classic, API3, Skale Network, Immutable X, IOTA, Tezos, Polkadot, Maker, Filecoin, Uniswap, Cardano, XRP, etc. |
BNB, Bitcoin, Green Metaverse Coin, Gaxle, Ethereum, Ripple, Cardano, Solana, Polygon, Dogecoin, Shiba Inu, Polkadot, Litecoin, Tron, Uniswap, Avalanche, Bitcoin Cash, Monero, Filecoin, etc |
Robinhood has few crypto coins to trade in compared to its competitors. While eToro has over 50+ cryptocurrencies, Binance has 350+ cryptocurrencies to trade in. If you want a diverse portfolio, switch to Binance US or eToro over Robinhood. However, if you are looking forward to convenience and affordability, Robinhood can fit all your needs.
Robinhood Crypto fees
Robinhood is an entirely free platform to start crypto trading. Therefore you don’t have to pay Robinhood crypto fees to start trading in this app. You get the complete flexibility to start trading on the platform at your convenience. You can trade 24* 7 on the crypto market from Robinhood. You can keep a check on the market, analyse the condition and make a choice accordingly to get the perfect choice for starting to trade. In the section below, we will compare the crypto fees on Robinhood and that of its competitors.
Robinhood VS competitors crypto fees
| Robinhood | eToroX | Binance US | |
|---|---|---|---|
Crypto spot fees |
Free |
1% |
Free |
Withdrawal fee |
Free |
$5 |
Flat fee on the conversion amount during the transaction process |
Can I withdraw crypto from my Robinhood account?
Yes, you can withdraw crypto from your Robinhood account. However, there are some limitations and restrictions that you should be aware of. Daily you can send crypto worth upto $5,000 or 10 transfers.
If you are day trading crypto on Robinhood, you may follow these steps to withdraw them from your account:
-
Login to your profile.
-
Visit the detail page that contains all information about your cryptos.
-
Select the asset/crypto you wish to transfer.
-
Select send, and enter the amount you wish to withdraw in the box.
-
Enter the wallet address from which you want to withdraw.
-
Verify the information on the Preview Page.
-
Click on Confirm.
Robinhood Crypto website
Best Robinhood alternatives
If Robinhood doesn’t suit you, you have a ton of alternatives available.
Summary
Robinhood Crypto is a commission-free cryptocurrency trading platform with a user-friendly interface and a wide selection of popular cryptocurrencies. However, there are some limitations to the platform, such as limited functionality, limited availability, and security concerns.
Users on Robinhood Crypto must also be aware of the pattern day trading rule, which limits the number of day trades that can be made within a rolling five-business-day period. While the rule does not currently apply to cryptocurrency trading, Robinhood applies it to cryptocurrency trading as it does for stocks. It is important for users to understand the risks of cryptocurrency trading and to carefully manage their risk and exposure when trading on Robinhood Crypto or any other platform.
FAQs
Do I need to maintain a minimum balance to day trade cryptocurrencies on Robinhood?
No, there is no minimum balance requirement to day trade cryptocurrencies on Robinhood.
What order types does Robinhood support for cryptocurrency trading?
Robinhood supports market orders and limit orders for cryptocurrency trades.
Are there any inactivity or account maintenance fees on Robinhood?
No, Robinhood does not charge any inactivity, account maintenance, or yearly fees. The app is free to use.
Is there a fee to buy and sell cryptocurrencies on Robinhood?
No, Robinhood does not charge any fees for buying and selling cryptocurrencies.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
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.