Cryptocurrency has become increasingly more popular over the last few years, though it has existed since Bitcoin was created in 2008.
Kraken was actually one of the first cryptocurrency platforms on the scene. It was founded in 2011, even before Coinbase in 2012.
While Kraken does have many features, it is a cryptocurrency platform only. Robinhood, on the other hand, lets members trade cryptocurrency, stocks, ETFs, options, and more. They even offer banking. One of the key benefits to trading crypto on Robinhood is that you will not pay any commission fees like other crypto platforms.
So, if you want to make the switch to Robinhood and take advantage of these additional features, then you've come to the right place. In this article, we cover the steps required to transfer from Kraken to Robinhood.
Let's dive in!
Robinhood recently introduced their crypto wallet. This wallet is available to to US residents in all states except Hawaii, New York, and Nevada due to local regulations. You can transfer your crypto to Robinhood with or without a wallet, though the steps are far simpler with a wallet. Check out our complete Robinhood Crypto wallet guide to set up your new wallet.
In this article, we will cover the process to move your cryptocurrency both with or without their new crypto wallet.
Unfortunately, if you do not have the new wallet, you will need to sell your crypto assets on Kraken first and then repurchase on Robinhood. (Because of this, we definitely recommend signing up for the crypto wallet.) We will highlight this process first. If you have the Robinhood crypto wallet, you can skip ahead!
These are the five key steps it'll take to rebuild your portfolio in Robinhood:
Below, we're going to guide you through each part.
First, you will need to open a Robinhood account.
Use the button above to get a completely free stock when you sign up!
To apply for a Robinhood account, you’ll need to meet the following requirements:
Opening an account with Robinhood is quick and simple. One of the main reasons Robinhood is so popular is for their incredibly simple design. Creating an account can be completed in just a few minutes.
Selling crypto on Kraken just takes a few steps:
When selling cryptocurrency on Kraken, there are two things to be aware of: fees and taxes.
First, the fees. Whenever you sell crypto on Kraken, you will have to pay a small fee. This fee will be subtracted from the funds. Second, the taxes. Whenever you sell cryptocurrency, regardless of platform, you may have to pay capital gains taxes should you sell for a profit.
Once you have sold the desired cryptocurrency, you are ready to transfer those funds to a bank account. This is done simply in the Kraken app:
These funds may take 1-4 business days to appear in your account.
If you've already linked a bank account, then you can skip this step. Otherwise, here are the steps to link a bank account to your Robinhood account:
Robinhood uses Plaid, a third party security company to easily link a bank. This process takes a matter of minutes to complete.
Now that you have a new Robinhood account with a bank linked, you are ready to rebuild your portfolio. Please be advised that Robinhood only has 15 cryptocurrencies as of this writing. So, before you commence this process, you should check that your crypto is supported.
In order to buy a crypto on Robinhood, follow the steps below to fund your new account:
The final step is to use your funds to buy crypto in your new Robinhood account.
If you have the new Robinhood crypto wallet, then the process is much easier. It also does not trigger a tax event as you are transferring the assets rather than selling and repurchasing.
With the crypto wallet, the process takes just 3 steps:
Let's take a look at each of these steps in detail.
Setting up the new wallet is actually really simple. The whole process takes a matter of minutes and can be completed from your phone.
You will need to submit a photo of your ID, set up two-factor authentication, and download an authenticator app.
Check out our complete guide to setting up a Robinhood crypto wallet for more details.
When transferring crypto assets out of Kraken, you will need a location to send them to.
In this case, that location is going to be a crypto wallet from Robinhood. Each crypto has a specific wallet, and each wallet has a specific address.
This address can be found in Robinhood quickly and easily:
Here's how to send crypto from Kraken to Robinhood:
This transfer may take a few days to complete. The main benefit of transferring assets in this way is you do not trigger a tax event. Additionally, you do not have to pay any transaction fees.
However, if you are trying to transfer a cryptocurrency that Robinhood does not support, you will not be able to complete the transfer.
The process to move assets from Kraken to Robinhood will vary whether or not you have the Robinhood crypto wallet. You can complete the transfer either way, but the process is certainly easier and faster with the Robinhood crypto wallet.
It is important to highlight that Robinhood currently only supports 15 coins. Before you sell your assets on Kraken, be sure to check the list above to see if your crypto is supported.
If you want to take advantage of all of Robinhood's features such as cash management, options, margin, and after hour trading, then perhaps moving from Kraken to Robinhood is for you. Many investors love the ability to trade both stocks and crypto in one app.
If you want to learn more about Robinhood, be sure to check out our full Robinhood review!