Robinhood is a commission-free stock and crypto trading mobile app that is hugely popular among millennials and Gen Zers. Known for its sleek user interface and completely free trading, Robinhood has amassed over 13 million users who are passionate about investing.
Though popular among many for its free stock trades, Robinhood also allows its members to transact in cryptocurrencies. There are currently 15+ tradable cryptocurrencies on the app.
This wide range of availability is great for investors who want access to the most popular coins but leaves something to be desired for those who want the less well-known options.
In this article, we cover how to buy crypto on Robinhood. We will use Bitcoin as an example, but you can use the steps below to purchase whichever crypto you want that is available.
Check out our video below on how to buy Bitcoin on Robinhood, or really any other crypto that is available!
In February of 2018, Robinhood began allowing its users to trade two of the most popular cryptocurrencies Bitcoin and Ethereum.
Since then, the company has added an additional cryptocurrency to the platform. Currently users can trade popular cryptos such as Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, Dogecoin, and more.
Users can also track price movements and news for the above and many more additional cryptocurrencies. This is a greater selection than many of the other investing apps that have decided to roll out crypto including Webull Crypto which currently only offers 4 cryptos to investors. However, other platforms focused solely on cryptocurrency have 50+ cryptos available for trading. These platforms include Coinbase or Gemini.
The actual steps required to purchase Bitcoin (or another available crypto) on Robinhood are fairly straightforward.
First, you’ll need to make sure that you have a Robinhood account. This should take less than a couple of minutes and can be done by downloading the Robinhood app and creating an account.
Second, in order to trade (i.e. purchase Bitcoin or other assets) you will need money in your account.
Robinhood currently supports immediate access to $1,000 in funds while your bank deposit is processing. With Robinhood Gold, a premium plan which costs $5 per month, $5,000 is instantly available. This instant deposit amounts grow as your account grows.
Third, purchasing Bitcoin is as simple as can be with Robinhood’s user interface. To do this, click the magnifying glass at the top right of your screen when on the main page. Type in "Bitcoin" to search. Tap on it once it appears.
You’ll notice the interface changes from a rather simple and standard design to an edgy look to showcase its crypto platform. At this point you can very simply click ‘Buy’ and enter the dollar amount you are interested in buying. You can choose to purchase on a recurring basis or simply a one-time purchase.
After you type in the dollar amount, you will tap "Review" to move forward.
You will now see the estimated price of Bitcoin and the estimated amount of Bitcoin you would receive. If you are happy with the transaction, then you will swipe up to confirm.
Because you enter a dollar amount and not a fixed number of shares, you are utilizing Robinhood’s feature of fractional coins. Without it, you would need to save up for the full price of one coin.
These transactions can happen at any time of day as Robinhood allows commission-free trading 24/7. This differs from stocks in that there is no standard trading window for transactions.
However, due to the speculative nature of crypto (it is not regulated by a central body like the government) it is not currently available in all states.
It is currently unavailable in Hawaii and Nevada.
Before using Robinhood Crypto, it is important to understand the following:
When you would like to sell your shares of Bitcoin, the process is very similar to buying. Simply locate your position within the app and select ‘Sell’. Similar to stock investing, you will have to wait 5 business days after selling to withdraw your funds to an external account.
Moving coins in or out of the platform can be done easily with Robinhood's crypto wallet. This wallet was actually launched early in 2020 and has been a complete game changer.
Before this wallet, investors would have to sell their crypto and transfer the funds to their bank and then to Robinhood or to another platform.
If you want to learn more about Robinhood's new wallet or how to enable it, be sure to check out our Robinhood crypto wallet guide.
In summary, Robinhood offers a sleek and simple user experience for those wanting to take their first position in cryptocurrency. Robinhood makes the purchase and sale of crypto relatively painless.
However, these inconveniences might be acceptable if you appreciate the commission-free trades and having your stocks and coins all located within the same app.
Robinhood also falls short in its lack of nationwide availability and the number of cryptocurrencies. While you can feel confident that you have access to the most popular coins, experimentation is limited on Robinhood.