How to Buy Cryptocurrency on Robinhood App – THE CRYPTOBASE

Fintech startup Robinhood is expanding its cryptocurrency trading product with two new token listings. Users in selected states can now trade Litecoin and Bitcoin Cash from the app.

Robinhood is currently providing one of the easiest ways to get started with cryptocurrencies. You can download the app, upload some money and buy tokens in just a few minutes.

But there are a few caveats.

First, Robinhood is only available in the U.S.

if you want to trade stocks, ETFs and options.

And if you’re interesting Robinhood Crypto more specifically, it is only available in 17 states.

Robinhood also claims that there’s no fee on cryptocurrency trading.

Given the liquidity of cryptocurrency exchanges, there’s always some spread.

It means that if you buy one bitcoin and if you sell one bitcoin, there will be a tiny gap between those two prices because of the tiny order book.

To help protect your market orders against dramatic price moves, we adjust market orders to limit orders collared up to 1% for buys, and 5% for sells.

Collars are based off the last trade price.

This means that your order won’t execute if the price of the cryptocurrency moves more than 5% lower than its price at the time you placed a market sell order, or more than 1% higher than its price when you placed a market buy order, until it comes back within the collar.

A limit order is an order placed to buy or sell a specified amount at a specified price or better. You don’t have to worry about day trading limits on cryptocurrencies because they’re not regulated by FINRA or the SEC like stocks and options.

Limit orders aren’t guaranteed to execute.

You don’t have enough buying power to place the trade.

Cryptocurrencies are non-marginable and can’t count as collateral, so you’ll need to have enough cash in your account to place the order.

You don’t have enough equity to reach your margin minimum. If you have a Gold account and are using Gold Buying Power, you won’t be able to place a cryptocurrency order in your Robinhood Crypto account if doing so would cause you to fall below your margin maintenance or minimum balance in your Gold account. Also, in a Robinhood Instant or Gold account, you cannot place a trade that would cause you to fall below your pattern day trade minimum equity.

Your account is being prevented from buying stocks.

When you make a deposit (or sell investments in your Robinhood Financial brokerage account), those funds are immediately available for purchasing cryptocurrencies in your Robinhood Crypto account.

Cryptocurrency trading is offered through an account with Robinhood Crypto. Robinhood Crypto is not a member of SIPC or FINRA.

We’re excited to release Robinhood Crypto to customers on a state-by-state basis.

Check out our growing list of states below!

Don’t see your state? Don’t worry–you’ll receive an email and an in-app notification when your account is ready for Crypto.

Robinhood Crypto also supports real-time market data for the following cryptocurrencies:

We also plan to support the ability to buy and sell other cryptocurrencies through Robinhood Crypto.

As a cryptocurrency investor on Coinbase, I’m used to being hosed with fees.

So when I got early access to Robinhood Crypto, I was ecstatic.

What’s Robinhood Crypto, you ask? It’s a new-for-2018 service being offered by Robinhood, the hottest stock brokerage app for Millennials, that allows you to buy and sell bitcoin without paying fees. It’s only been rolled out in a small handful of states so far, my home state of California included.

Buying bitcoin without fees sounds too good to be true, right? Well, in a sense, it is — Robinhood Crypto has some big issues. But overall, being able to buy and sell without fees is a game changer.

Pardon me if this reads like a love letter to Robinhood.

It’s everything I want a crypto buying experience to be.

Well, almost.

The Robinhood app itself is pretty slick.

Fintech startup Robinhood is expanding its cryptocurrency trading product with two new token listings. Users in selected states can now trade Litecoin and Bitcoin Cash from the app.

Robinhood is currently providing one of the easiest ways to get started with cryptocurrencies. You can download the app, upload some money and buy tokens in just a few minutes.

But there are a few caveats.

First, Robinhood is only available in the U.S.

if you want to trade stocks, ETFs and options.

And if you’re interesting Robinhood Crypto more specifically, it is only available in 17 states.

Robinhood also claims that there’s no fee on cryptocurrency trading.

Given the liquidity of cryptocurrency exchanges, there’s always some spread.

It means that if you buy one bitcoin and if you sell one bitcoin, there will be a tiny gap between those two prices because of the tiny order book.

What is the difference between buying bitcoin on robinhood vs coinbase? are you actually “owning” bitcoin if bought on robin hood?

If you buy on robinhood you can’t transfer the bitcoin to a private wallet or anywhere else.

With Coinbase you can transfer it wherever you want.

However you don’t actually own the physical BTC until you transfer it to your own private wallet.

so basically, in general terms, using robinhood for btc is like using coinbase w/o transfer capabilities. correct?

and is there any downside to using robinhood to invest in BTC other than the simple fact that:

you cant transfer it from RH to another entity. simply for Cash to BTC or vice versa ON RH.

since you cant do point 1, you cant transfer it to your own wallet, meaning you cant physically OWN BTC.

You can’t withdraw BTC bought on robinhood.

I do not use Robinhood, but I was extremely surprised when I found out users that buy bitcoin on there can’t spend or send their bitcoin off Robinhood. As far as I know, you can only exchange bitcoin you buy on there back to dollars.

It’s not really an exchange. So it’s sort of reasonable.

They just need to make it very, very clear that you’re not actually buying bitcoin, but investing in shares of Bitcoin.

Do they have an onramp in BTC to exchange to USD? Or only on/offramp in USD?

It’s a way to invest in Bitcoin with no intention of actually using it. It’s better than nothing I suppose.

Gives more people access to being able to purchase bitcoin, not everyone who buys, sells or sends it or even uses it for transitions.

Im thinking about buying some but after seeing a few posts on here about the security made me unsure if RobinHood is a safe route to go?

One cannot buy Bitcoin on Robinhood.

What you purchase will not truly be yours.

Robinhood is just paper trading.

The may or may not have any actual bitcoin in their coffers

Sure you can buy something robinhood calls bitcoin. Its not REALY bitcoin, but you are free to buy it.

With Robinhood, you are only buying exposure to the bitcoin price. You do not get to withdraw them.

I don’t see if they treat these as something like a CFD where a long position could get closed during a rally (i.e., your upside is limited), or if this is full-reserve, where your investment is backed by that amount of bitcoins under Robinhood’s control/custody.

So I don’t think you have to worry too much about them “losing your funds”.

I’ve been ignoring prices, but holy crap I thought it was still 900-1000

Dude, welcome to the shit show, strap in, because we all going down, Unfortunately

Flash back to August of last year when it was $350.

Welcome to the rollercoaster boi

I don’t think they plan on letting you.

This actually turns the cryptocurrency into an entirely speculative asset, which is harmful.

No, I’m not living under a rock and I know 99% of people are buying crypto to own lambos but the fact that you can withdraw it and use it implies a functional value.

An exchange locked cryptocurrency is basically a regulated equivalent of a tether.

It’s a fictitious token pegged to a crypto asset but isn’t the real thing.

They said in the FAQ you would be able to withdraw it, but so far I can’t find anything in the app.

My first stock trade was late 2018 (better late than never, I guess)…

if I purchase bitcoin through Robinhood, how do I actually ‘own’ my coins? Is there a way for me to transfer my purchased coin to a wallet somehow? Sorry if this is a dumb question.

I’m just trying to understand how this works.

Thanks in advance.

You aren’t really buying Bitcoin, you’re claiming a virtual ticket that says you claim the right to the value of a bitcoin. Robinhood Crypto is purely for investing/speculating and not for actual cryptocurrency ownership.

Exactly.

Thus you won’t ever be able to transfer these bitcoin from Robinhood to your own wallet.

You can only sell them there again, but nothing else.

The world of cryptocurrency has been turned upside down with the announcement of the popular no commission stock purchasing app Robinhood entering the crypto-space. You can now in select states purchase Bitcoin (BTC), Ethereum (ETH) with Litecoin (LTC) and Ripple (XRP) coming soon.

2. Select the cryptocurrency you would like to purchase (currently only Bitcoin (BTC) and Ethereum (ETH) is available to purchase, Litecoin (LTC) and Ripple (XRP) will be coming soon) and click the BUY button at the bottom of the screen.

3. Choose the amount of cryptocurrency you want to buy with the Robinhood app and click the check button to confirm your purchase.

4. If you have not connected a payment source or bank account and funded your account you will be asked to deposit fiat (USD) into the Robinhood app.

5.

We are committed to researching, testing, and recommending the best products.

We may receive commissions from purchases made after visiting links within our content.

Bitcoin took the world by storm as it rocketed from obscurity to nearly $20,000 in value per coin in 2017. The cryptocurrency markets have calmed down a bit since that record high, but many Bitcoin evangelists still claim Bitcoin to be the currency of the future. Follow along to learn more about how Bitcoin works and the best places to buy Bitcoin.

First of all, need some background information about what Bitcoin is? It’s a digital currency used mostly for online purchases and as an investment, albeit a very risky one.

One reply on “How to Buy Cryptocurrency on Robinhood App – THE CRYPTOBASE”