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Want to get started in cryptocurrency but don’t know how? Check out this blog post to learn how to buy crypto on Robinhood.
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Introduction
Robinhood is one of the most popular brokerages in the US, and they recently introduced the ability to trade cryptocurrencies on their platform. In this guide, we’ll show you how to buy crypto on Robinhood step-by-step.
1. Log in to your Robinhood account and go to the ‘Crypto’ tab
2. Find the cryptocurrency you want to buy in the ‘Coins’ list and click on it
3. Enter how much you want to buy, then click ‘Buy’
4. Review your order, then click ‘Confirm’
5. Congratulations, you’ve just bought crypto on Robinhood!
What is Robinhood?
Robinhood is an investing app that allows users to buy and sell stocks, ETFs, options, and cryptocurrencies with no commission fees. The company was founded in 2013 by Vladimir Tenev and Baiju Bhatt and has since grown to over 10 million users. Robinhood was one of the first companies to offer commission-free stock trading and has since expanded its offerings to include options, ETFs, and cryptocurrencies.
Cryptocurrencies are digital or virtual assets that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
Robinhood offers cryptocurrency trading in the following states: Arizona, California, Colorado, Florida, Illinois, Indiana, Massachusetts, Michigan, Missouri, Montana, New Jersey, New Mexico, Ohio, Pennsylvania, Utah, Virginia, Washington.
If you’re a Robinhood customer in one of these states you can trade the following cryptocurrencies on Robinhood Crypto: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Dogecoin (DOGE), Bitcoin SV (BSV), Stellar Lumens (XLM), Zcash (ZEC), Monero (XMR).
How to Sign Up for a Robinhood Account
Robinhood is an investment app that allows you to buy and sell stocks, ETFs, options, and cryptocurrencies all in one place. In order to buy crypto on Robinhood, you’ll first need to sign up for a Robinhood account.
1. Go to https://robinhood.com/.
2. Enter your email address and create a password. Make sure to use a strong password that you haven’t used for any other accounts.
3. Enter your personal information, including your full name, date of birth, address, and Social Security number. You will also need to verify your identity with a government-issued ID.
4. Once you’ve entered all of your information and verified your identity, you’ll be able to start trading!
How to Buy Crypto on Robinhood
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
You can buy cryptocurrencies on Robinhood with cash or crypto. To buy crypto with cash, you’ll need to deposit funds into your Robinhood Crypto account and convert them into crypto. To buy crypto with crypto, you’ll need to have crypto in your Robinhood Crypto account that you want to use to make your purchase.
Here’s how to buy Bitcoin on Robinhood:
1. Tap the cryptocurrency you’d like to buy in the Crypto section of the app. If you don’t see the cryptocurrency you want, tap +Add Cryptos and enter the name or ticker of the cryptocurrency you’d like to add.
2. Tap Trade in the upper right corner of your screen.
3. Enter the amount of cryptocurrency you’d like to buy in either USD or pieces (pieces is the amount of cryptocurrency units). You can also tap Max to enter the maximum amount available based on your account balance and current market prices. Then tap Buy in the lower right corner of your screen. Review your trade confirmation carefully before tapping Confirm Trade in green at the bottom of your screen
How to Sell Crypto on Robinhood
Once you have cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) in your Robinhood Crypto account, you can sell them at any time. Here’s how:
1. Log in to your account and tap on the crypto icon in the bottom navigation.
2. From here, select the cryptocurrency you want to sell from your list of holdings.
3. Tap “Sell” in the top navigation.
4. Select “Good Till Canceled” or “Immediate or Cancel.”
5. Enter the amount of crypto you want to sell, then tap “Sell {crypto}.”
6. Review your order and tap “Confirm Sell.”
Supported Cryptocurrencies
Robinhood Crypto is available in 19 US states and territories. Cryptocurrencies are volatile, and the value of your investment can rise and fall. The market is still new and unproven. When buying cryptocurrency on Robinhood, you’re investing in a commodity with extreme fluctuations that can result in losses as well as gains. Please invest responsibly.
You can buy the following cryptocurrencies on Robinhood Crypto:
Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), Bitcoin SV (BSV), Ethereum Classic (ETC), Zcash (ZEC). If you’re located in one of the following states, you can also trade cryptocurrency OTC: AK, AZ, CO, ID, IL, IN, MA, MT, ND, NM, NV, OH, OR, PA, RI, SD, VT, WA. For additional information please see our FAQ page.
Fees
Robinhood crypto does not charge fees for placing cryptocurrency trades. However, it should be noted that Robinhood makes its money through Robinhood Gold subscriptions and margin lending. When you sign up for a Robinhood Gold account, you’ll be charged a monthly fee based on the value of your portfolio. The fee ranges from $5 to $200 per month. In addition, Robinhood charges interest on the money you borrow when you trade on margin. The interest rate is variable and is based on the federal funds rate plus an additional 5%.
Pros and Cons
Robinhood is a commission-free stock and cryptocurrency trading app that allows users to trade various securities. Robinhood does not currently offer crypto trading in all states. In states where crypto trading is available, Robinhood offers a comprehensive platform that includes features such as market data, price alerts, and news. Although Robinhood does not have the same extensive research offerings as some of its competitors, it makes up for this with its low fees and easy-to-use interface. Overall, Robinhood is a good option for those looking for a simple way to buy and sell crypto.
Pros:
-Commission-free trading
-Easy to use interface
-Low fees
Cons:
-Limited research offerings
-Not available in all states
Conclusion
In summary, buying crypto on Robinhood is a straightforward process. Simply sign up for an account, deposit funds, and then place your order. Robinhood does not currently support withdrawals, so you’ll need to transfer your coins to another wallet once you’ve purchased them. Despite its limitations, Robinhood is a great option for those looking to invest in crypto without having to pay exorbitant fees.
