How To Transfer From Coinbase To Robinhood

Ever considered transferring your crypto from Coinbase to Robinhood, but unsure how to do it?

You're in good company.

This article provides an easy guide on how to transfer crypto from Coinbase to Robinhood, detailing every step for a smooth and secure transaction.

New to the world of Crypto? Check out my full Coinbase tutorial below!

1. Open A Robinhood Account

First, you will need to open a Robinhood account. 

Use the button above to get a completely free stock when you sign up!

2. Enable Robinhood Crypto Wallet

Enabling the new wallet requires verifying your identity through a photo of your passport or driver's license and setting up 2 factor authentication with your email, phone number, or authenticator app.

You can complete this process by going to your Robinhood app and following the prompts in settings.

3. Make Sure Robinhood Supports Your Crypto

When transferring crypto between Coinbase and Robinhood, it’s essential to ensure that both platforms support the same cryptocurrency. Robinhood offers a variety of popular cryptocurrencies for trading and transfers. These include, but are not limited to:

• Bitcoin (BTC)
• Ethereum (ETH)
• Dogecoin (DOGE)
• Litecoin (LTC)
• Bitcoin Cash (BCH)

Before initiating a transfer, double-check that the cryptocurrency you're transferring is supported on both platforms. Robinhood regularly adds new coins to its platform, so it's a good idea to stay up-to-date with their latest offerings.

For the complete and up-to-date list of supported cryptocurrencies on Robinhood, visit Robinhood's Crypto Support Page.

4. Locate Your Robinhood Wallet Address

When sending crypto from Coinbase to Robinhood, we need to locate the correct Robinhood wallet address. Each crypto has a unique address.

For example, if you want to send Bitcoin, you must use a Bitcoin address.

Use these steps to locate your Robinhood crypto addresses:

1. Locate the desired crypto by tapping on the search icon in the bottom menu and typing in the crypto you want
2. Scroll down and tap on the "Receive" button
3. Tap on the "Copy Address"

Always double-check that the wallet address is correct before sending crypto. Consider using a test transaction for large transfers, and avoid copying/pasting addresses from unsecured sources.

5. Transfer From Coinbase To Robinhood

With the wallet address from Robinhood copied, you are ready to send.

Follow these steps in the Coinbase app:

1. Open the app on your phone
2. Click the "Send" button
3. Set the type of coin that matches the copied Robinhood address and amount you want to send, and press "Continue"
4. Paste your Robinhood wallet address
5. Confirm your transaction before pressing send

Transfer Timeline

Transfer times can vary based on network congestion, generally taking no more than 5 minutes for ERC-20 coins.

After initiating, you will receive notifications from both platforms confirming the transaction.

How to Withdraw Crypto from Robinhood

While you can transfer crypto into Robinhood, it's important to know how to move it out as well.

• Enable Crypto Transfers: Complete identity verification and set up two-factor authentication (2FA) in the Robinhood app.
• Sending Crypto: Open the crypto’s detail page, tap "Send," enter the amount, paste the recipient’s wallet address, and confirm the transaction. Network fees will be shown before finalizing.
• Wait for Confirmation: Transfers may take a few hours, depending on network conditions, and Robinhood will notify you once completed.

Tax Implications

When transferring cryptocurrency between platforms like Coinbase and Robinhood, it's important to be aware of potential tax implications. In many countries, including the United States, cryptocurrency transactions are treated as taxable events by the IRS. This includes the transfer, sale, or exchange of cryptocurrencies, even if no money changes hands.

Although transferring crypto between wallets or platforms (such as from Coinbase to Robinhood) might not trigger a taxable event in itself, the following situations could:

• Capital Gains Tax: If you sell or trade cryptocurrency for a profit, you may be subject to capital gains tax, which is based on the difference between the price you bought the crypto for and the price you sold it at.
• Reporting Requirements: Both Coinbase and Robinhood may provide you with tax documents at the end of the year, including records of transactions that could affect your tax filings. It’s important to keep detailed records of your crypto activity, including transfers, to ensure compliance with tax laws.
• IRS Reporting: The IRS requires cryptocurrency transactions to be reported on your tax return, including any capital gains or losses from the sale or trade of crypto. Failing to report this can result in penalties or fines.

Since tax laws regarding cryptocurrency can be complex and vary by country, it's highly recommended to consult with a tax professional to understand how your crypto activities might impact your tax filings.

For more detailed information on how taxes apply to cryptocurrency transactions, consider visiting Coinbase's Tax Center or Robinhood's Tax FAQs.