One of the most exciting investments in the market today is crypto. Digital currency has attracted a huge amount of investors and several hours of media attention. If you're like me, you've certainly dabbled in some coins and are looking forward to the next big innovation in the crypto space.
It's quite possible that you've even purchased some coins (or shares of coins) across multiple platforms. Because this is such a new asset, there are many platforms that are interested in getting your attention so that you invest with them.
One of these companies is Robinhood. Robinhood is the pioneer of streamlined, democratized investing and has recently moved into cryptocurrencies. For those of you who have purchased crypto on the Robinhood platform or are considering it, it's important that you know how to transfer crypto out of Robinhood.
This article will focus on the above topic. However, if you are interested in learning about the full crypto experience on Robinhood, check out our full Robinhood crypto review.
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The disruptive innovation from Robinhood has also been felt in the crypto space. Similar to stocks, users can buy and sell cryptocurrencies on the Robinhood platform without the need for an account minimum or commission payments.
Currently, there are seven different coins on the Robinhood platform. They are Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC). With these coins, you are free to watch, buy, or sell.
There are several other coins on the platform that are currently unavailable for trading. However, you can track these coins to learn more about them before you purchase them using a different platform. These coins are Bitcoin Gold (BTG), Lisk (LSK), Monero (XMR), NEO (NEO), OmiseGO (OMG), Qtum (QTUM), Ripple (XRP), Stellar (XLM), Zcash (ZEC).
As with the features available for stock traders on Robinhood, there are some limitations. One of the most prevalent is the lack of coins on the platform. The 7 above make up only a fraction of the coins out there and competing platforms such as Coinbase have more than 50 coins available. In addition, Robinhood does not currently have a wallet where users can store their coins. While this is currently in development, it could be a while before a wallet is on the platform.
Now, let's talk about the pros. Clearly, the ability to trade without commissions is a huge advantage over some competitors. In addition, Robinhood's simple user interface takes away some of the confusion that exists in the industry. Another pro is that you can have all your investments (minus your retirement savings) all in one location. This is a great benefit so that you can see a large chunk of your net worth from one screen.
If you've been trading crypto on Robinhood and have decided that it might be time to try out another platform, you'll want to transfer your coins. Currently, there is no direct way to do this on the platform, though this may change in the future. In the meantime, there is a workaround.
Since there are no commissions on the platform, you can easily sell your coins and then take the cash resulting in the sale to purchase coins on another service. This is going to be the simplest way to 'transfer' coins. Keep in mind that any time you sell an asset, you will trigger a taxable event.
The inability to transfer coins into and out of the Robinhood platform is likely to change once the wallet is available. With wallets, users will be able to directly send their coins to a different wallet on a different platform. This is going to be a great benefit and make crypto on Robinhood seem more like a cash alternative rather than an investment asset.
In the meantime, you can check out these additional articles outlining the best way to move your crypto assets from one platform to another.
Robinhood recently announced the launch of their new crypto wallets. While there is still a waiting list to gain access to their crypto wallets, they will change the crypto experience on Robinhood. Currently, the only way to transfer crypto in or out of Robinhood is to sell your positions and use the funds to purchase your crypto again in a new platform. With the Robinhood wallet, this is not the case.
Check out our full article on the Robinhood Crypto Wallet to learn more.
Although users are unable to directly transfer crypto into or out of Robinhood, it is still a great platform for crypto trading. The sleek design, lack of commissions, and available coins make this a platform for many types of users.
In addition, the announcement of a crypto wallet and new 24/7 customer service help users feel confident about the future of crypto on Robinhood.
If you are looking to get more serious with crypto investing, I would recommend checking out other services like Coinbase or Blockfi. These platforms offer other crypto features such as wallets and a large selection of coins. However, be aware that Robinhood is one of the few that offers crypto trading with no commissions!