If you’re wondering why Robinhood won’t let you buy crypto, you’re not alone. Many users have been asking the same question, and unfortunately, there isn’t a clear answer. In this blog post, we’ll explore some of the possible reasons why Robinhood might be blocking crypto purchases, and what you can do about it.
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Robinhood is a popular investing app that lets users trade stocks, ETFs, options, and now crypto without any commission fees. It’s a great way to get started in investing, and many people love it for its simplicity. However, some users have been complaining recently that they can’t seem to buy crypto on Robinhood anymore. So what’s going on?
What is Robinhood?
Robinhood is an online brokerage that allows its customers to trade a variety of financial instruments, including stocks, options and crypto. Robinhood does not currently allow its customers to buy crypto directly; however, it does allow them to invest in crypto-related companies through its investment platform.
Why Won’t Robinhood Let Me Buy Crypto?
As of March 5, 2018, Robinhood no longer offers the ability to buy or sell Bitcoin or Ethereum. The company did not give a reason for this change, but it may be due to the volatile nature of cryptocurrencies.
If you are still interested in buying cryptocurrencies, there are other platforms that you can use. Coinbase is one option that is available in the United States.
What Are the Alternatives?
There are a few alternatives to Robinhood that do allow crypto trading. Some of these include Coinbase, Kraken, and Binance. These exchanges all have their own pros and cons, so be sure to do your own research before deciding which one is right for you.
If you’re not interested in using an exchange, there are also a few peer-to-peer (P2P) marketplaces that allow you to buy and sell crypto directly with other users. LocalBitcoins and Paxful are two of the most popular P2P marketplaces. Again, be sure to do your own research before using any P2P marketplace, as there have been some scams reported in the past.
In conclusion, Robinhood is not currently allowing crypto purchases because they are “waiting for clearance from the Financial Industry Regulatory Authority (FINRA)”. However, they have been allowing crypto trading for over a year now and plan to offer crypto purchasing in the future. In the meantime, there are other exchanges that allow crypto purchases.