Vault’s Viewpoint
- Robinhood offers zero-commission trading of some of the most popular cryptocurrencies.
- While you can invest in crypto with as little as $1 on Robinhood, it doesn’t have as wide a menu of digital assets and services as some of its more crypto-focused counterparts.
- Carefully consider your crypto investing goals before choosing a platform, and remember that buying and selling digital assets comes with risks.
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Robinhood
On Robinhood’s Website
Get up to 3.5% more crypto on Robinhood*
Account Minimum
$1
Trade Minimum for Bitcoin
$1
Cryptocurrencies Offered
15
24/7 Customer Support?
Yes
Features
- Buy, hold and sell popular cryptocurrencies and stablecoins such as BTC, ETH, DOGE, SHIB, AVAX, LTC, UNI, ETC, LINK, XLM, AAVE and more.
- Easily make trading crypto your routine for as little as $1 on a fixed and automated schedule.
- Track market trends, plan advanced trades, set price alerts and get more advanced trading tools all in one place.
Additional Info
- Industry-leading security
- Robinhood does not lend your crypto or leverage against it
- Cold storage for vast majority of our customers’ coins
- Crime insurance against theft and cybersecurity breaches
Disclosures
*As of May 13, 2022, for every $100 of notational crypto order volume executed, Robinhood received $0.35 in rebates from its trading venues. Other fees may apply. See the RHC Fee Schedule for more details.
Cryptocurrency trading is offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.
See the full Crypto Risk Disclosure here.
Robinhood Investing With Cryptocurrency
Founded in 2013, Robinhood launched its crypto trading capabilities in 2018 and has expanded its offerings ever since. Initially, customers in five select states could buy and sell Bitcoin and Ethereum, the two largest cryptocurrencies by market value. Now, Robinhood Crypto is available in every U.S. state except Hawaii, and users can trade 15 crypto assets, including Dogecoin, Litecoin and stablecoins.
Users can buy just a fraction of a crypto with as little as $1. For example, if bitcoin is trading around $60,000 per coin, you can buy just a small sliver of a coin—as little as 0.000001 BTC. (The one exception is Dogecoin, which has a minimum of one DOGE.)
While this setup makes crypto accessible to the masses, it also makes a risky asset very easy to buy. The cryptocurrency market is highly volatile, and it hasn’t been proven to build wealth over the long term in the way that traditional assets like stocks and bonds have. Bitcoin, the first crypto, has only been around since 2009. The novelty of the crypto market also means that it isn’t as highly regulated as the stock market. While the government has made it clear it plans to outline more rules around crypto—and recently approved Bitcoin exchange-traded funds (ETFs) after a lengthy back and forth with fund providers—there still isn’t a lot of clarity around how cryptos will be regulated moving forward or how consumers will be protected. With the treatment of cryptos in flux, investors must be careful when buying and selling these risky assets and understand that platforms may change to meet new regulations. The Securities and Exchange Commission (SEC) warned Robinhood via a Wells notice in May 2024, for example, that its crypto business may face a lawsuit soon.
Pros of Investing with Robinhood
Robinhood made its name by helping popularize zero-commission trading—a practice that’s now the industry norm. That lack of commissions also applies to crypto trading on Robinhood, and that fee-free structure is one of Robinhood’s main pros.
Robinhood still earns money through rebates from its trading venues. But the lack of commissions customers pay to buy, sell and hold cryptos on the platform does give it an advantage over some competitors. For example, the company claims that $1,000 will get you 0.01476 BTC via Robinhood but 0.01435 BTC (2.75% less) on Kraken and 0.01445 BTC (2.13% less) on Coinbase. Remember that if you opt for Robinhood’s premium subscription, Robinhood Gold, there’s a $5 monthly charge.
Another advantage Robinhood has is that, unlike some of its crypto platform competitors, it allows investors to hold their cryptocurrency on the same platform as their other investments. Investors can trade their bitcoin in the same app they’re buying ETFs in their individual retirement accounts (IRAs). The same can’t be said for platforms like Crypto.com, for example.
Robinhood also has a wide range of trading tools, including charts that can help you stay on top of prices and market trends, plan future trades and get alerts when tokens of your choosing hit a certain price. If you’re new to crypto, Robinhood offers digestible educational content via Robinhood Learn, including everything from a breakdown of what a crypto wallet is to explanations of updates to the Bitcoin network.
Cons of Investing with Robinhood
One of Robinhood’s main advantages—that it offers far more than just crypto—may also be a downside for certain investors: The platform doesn’t have as many crypto offerings as other platforms. While you can only trade 15 crypto assets on Robinhood, Coinbase supports more than 260 digital assets and Crypto.com offers more than 350.
Robinhood also doesn’t offer as many crypto services as its crypto-focused counterparts. For example, the platform doesn’t support staking, a popular strategy among crypto traders that allows you to earn rewards for holding certain coins. Meanwhile, Robinhood only allows users to receive and store NFTs (non-fungible tokens), which are unique tokens that represent an asset like art or a song. Crypto enthusiasts may want to opt for a platform that will allow them to buy and sell these digital assets as well.
Should You Invest in Crypto with Robinhood?
Whether you should invest in crypto on Robinhood really comes down to how and why you want to engage with cryptocurrency. If you want to buy better-known cryptos like Bitcoin and Ethereum via an easy-to-use platform at low costs, Robinhood may make sense to you. But if you’re a more experienced crypto trader looking to find new tokens and use advanced crypto-focused data and analytics tools, you might want to look for another platform that puts more of an emphasis on digital assets.
Remember that crypto trading can be risky. Financial advisors tend to recommend that you only invest as much in digital assets as you can afford to lose. If your goal is to build wealth over the long term, you are likely better off building a balanced portfolio of diversified ETFs and mutual funds.
How to Invest on Robinhood
If you’ve decided that you’d like to buy or sell crypto on Robinhood, follow these steps.
1. Open a Robinhood account
If you don’t already have an account with Robinhood, you’ll need to open one. The application asks for personal information such as your Social Security Number. To trade crypto on Robinhood, you must be at least 18 and be in a U.S. state or the District of Columbia (crypto trading on the platform isn’t currently offered in Hawaii). According to the company’s site, reviewing the information and opening an account may take up to seven days.
2. Fund the account
To buy crypto, you’ll need to fund your account. When you create an account, you’ll be asked to submit your bank information so that you can transfer money into your Robinhood account and begin trading. You can start buying crypto with as little as $1.
3. Choose a crypto
Once you have your account, you can navigate to crypto trading on the website or in the app. Choose from one of the 15 digital assets available.
4. Opt to buy or sell
You’ll have to indicate whether you want to buy or sell the crypto (the second of which you’d only be able to do if you were already holding the asset). After you choose to buy or sell, you’ll be asked the amount you’d like to trade and whether you’d like to execute a one-time trade or make it recurring, like once a week.
5. Place your order
Carefully review your order. Once you’re ready to officially place your order, you’ll swipe up if you’re on the mobile app or click “submit buy” or “submit sell” if you’re trading via the website.
Frequently Asked Questions
Can I transfer Bitcoin from Robinhood?
Robinhood says you can send crypto from your Robinhood Wallet to other addresses or exchanges that support Ethereum, Bitcoin, Dogecoin, Arbitrum, Polygon, Optimism or Base transfers. You’ll need to ensure you send crypto over the same network (for example, Polygon to Polygon).
Is My Money Safe in Robinhood Crypto?
Robinhood offers several security features for your crypto. The firm holds most of your digital assets in cold storage, which is disconnected from the internet, lowering the risk of hacks. The platform also carries crime insurance to protect a portion of your crypto assets from theft. But remember that crypto investing is risky, and the market experiences severe market swings.
Is It Better to Buy Crypto on Robinhood or Coinbase?
If you are choosing between Robinhood and Coinbase, consider your goals. Robinhood allows you to trade crypto alongside stocks and ETFs and offers zero-commission trades, while Coinbase has a broader menu of digital assets and services.
