Is Robinhood Good for Crypto? A Complete Information

Robinhood is a buying and selling app and platform that was based in 2013 by two entrepreneurs named Vladimir Tenev and Baiju Bhatt. Their objective was to create a user-friendly app that will be free and accessible.

Right this moment, Robinhood is likely one of the most-used monetary apps on the earth. At first, the app was for buying and selling shares and ETFs. Right this moment, customers also can commerce cryptocurrencies.

You is likely to be questioning: Is Robinhood crypto any good? Can you purchase Bitcoin on Robinhood, and is it secure to purchase Bitcoin on Robinhood?

Robinhood’s crypto buying and selling charges are low when in comparison with others available on the market for crypto belongings. Right here’s an instance of what you’d get spending $100 on Robinhood vs different websites that permit for crypto buying and selling.

As you’ll be able to see, you’d get 2.41% extra crypto to your cash on Robinhood crypto than you’d on Kraken, and a pair of.35% greater than you’d on Coinbase.

For those who’re contemplating buying and selling crypto on Robinhood, we’ve obtained the solutions you want. Earlier than you begin shopping for cryptocurrency on Robinhood, it’s essential to know in regards to the app’s options, safety, and person expertise buying crypto belongings. We’ll cowl all that and extra, so hold studying to get the small print!

What’s Robinhood Crypto?

Robinhood began as a inventory and ETF buying and selling platform. In 2018, with a waitlist of greater than two million clients, they launched commission-free buying and selling of Bitcoin and Ethereum in a number of states.

Robinhood is an digital brokerage and as such, is regulated by FINRA and registered with FinCEN as a cash companies enterprise.

By 2021, Robinhood was offering cryptocurrency buying and selling to customers in each state plus the District of Columbia, Puerto Rico, and the US Virgin Islands.

Crypto choices began with simply Bitcoin and Ethereum, however have since expanded to incorporate Dogecoin, Litecoin, Shiba Inu, and 14 others to your crypto wallets. Remember that state regulation might prohibit buying and selling some cash, so you need to all the time verify to make certain of the principles. For instance, buying and selling of USD coin is prohibited in New York and Texas.

What we like about Robinhood Crypto is that it makes use of the identical, user-friendly interface as Robinhood. That signifies that it’s simple for starting crypto buyers so as to add cryptocurrencies to their portfolios.

We must always notice right here that Robinhood Crypto holds customers’ cryptocurrency in chilly storage, that means it’s not linked to the web. We’ll go into extra element in regards to the security and safety measures Robinhood makes use of later on this assessment.

Professional Tip:

Obtain as much as $1500 in free inventory per 12 months once you refer buddies on Robinhood!

Can I Purchase Crypto on Robinhood?

For those who’re asking if Robinhood is nice for crypto, then allow us to enable you out. We already confirmed you a picture illustrating that you just’ll get extra crypto to your cash once you commerce by way of Robinhood than you’d with different crypto buying and selling platforms.

One of many options we like finest about Robinhood Crypto is that it’s attainable to purchase fractional quantities of the cash you’re all in favour of. 

For instance, as of November 18, 2024, a single Bitcoin opened at $89,601.77. Most starting buyers don’t have that quantity to spend. Nevertheless, you’ll be able to nonetheless purchase Bitcoin on Robinhood. For instance, you could possibly make investments $100 monthly to extend your Bitcoin holdings over time.

Listed here are a few of the options of Robinhood Crypto that we like finest.

• Any US citizen or everlasting resident with a Social Safety Quantity and a everlasting residence within the US can commerce crypto on Robinhood.
• Robinhood permits for buying and selling of 19 totally different cryptocurrencies, greater than many different on-line brokers.
• Robinhood is regulated by FINRA and registered with FinSEC.
• You’ll be able to make investments as a lot or as little in cryptocurrency as you need. (The one exception is Dogecoin, the place there’s a minimal buy requirement of 1 Dogecoin.)
• Robinhood permits buyers to maneuver cryptocurrencies out of safe storage and right into a separate crypto pockets in the event that they select.

Robinhood shouldn’t be a cryptocurrency suggestion service. Which means you’ll have to make your individual selections about which cash to purchase and the way a lot to spend. For those who see individuals sharing crypto efficiency charts for Robinhood, these are exhibiting private outcomes and never total or statistical outcomes.

Is Robinhood Protected for Crypto?

One of the essential concerns earlier than utilizing any digital buying and selling platform is security. Is Robinhood crypto secure for the acquisition of crypto belongings? 

Listed here are the measures that Robinhood has put in place to be sure that crypto buyers are protected.

1. As we said above, they maintain the vast majority of buyers’ cash in chilly storage, which is “fully disconnected from the web.” That signifies that even when Robinhood had been to get hacked, hackers wouldn’t be capable of get to your cash.
2. Whereas Robinhood accounts and crypto investments aren’t insured by the FDIC or the SIPC, Robinhood carries crime insurance coverage that protects, as they are saying, “a portion of the belongings held throughout our storage methods.” The insurance coverage coverage is underwritten by Lloyd’s syndicates, which is the world’s main insurance coverage market.
3. Robinhood Crypto has a devoted safety staff that conducts common critiques of the app’s and web site’s code and infrastructure. They’ve additionally said that they pay for normal third-party testing.

This stuff are all good. We do need to level out language which may be of concern to some buyers, particularly that “some” cash are held in chilly storage and “a portion of the belongings” are protected by insurance coverage. Robinhood hasn’t offered another data, so that you’ll have to resolve should you really feel that their safety is satisfactory.

On a associated notice, Robinhood has advisable some safety measures that customers can take to guard themselves. These embrace the next:

• Set a safe password that accommodates at the least 10 characters, ideally a random mixture of higher and lowercase letters, numbers, and symbols. It must be a singular password that you just don’t use for anything.
• Activate two-factor authentication, also called 2FA. All you should do is search for 2FA underneath Safety and toggle the button from Disabled to Enabled.
• Assessment gadgets which have accessed your account. In case you have gotten rid of a laptop computer, pill, or telephone, be sure that to take away it out of your account.
• Arrange a PIN or password for adjustments to your SIM card. Generally, hackers might try and swap the data in your telephone for a brand new SIM card, however should you arrange a PIN, they received’t be capable of try this.
• Think about transferring your cash from Robinhood to a chilly pockets of your individual.

As a degree of comparability, Coinbase provides state-of-the-art encryption and a multi-level withdrawal system to guard buyers’ cryptocurrency holdings and crypto belongings.

General, we predict that Robinhood crypto safety measures are satisfactory to guard most buyers in the event that they take the extra advisable steps outlined above.

We’d be remiss if we didn’t level out that cryptocurrency investments are inherently dangerous. There’s much more volatility than what you’d anticipate finding with conventional shares or ETFs, so hold that in thoughts.

Professional Tip:

Obtain as much as $1500 in free inventory per 12 months once you refer buddies on Robinhood!

Shopping for Crypto on Robinhood

You’re most likely questioning by now tips on how to purchase crypto on Robinhood. We’ve created this fast, step-by-step information that will help you enhance your crypto wallets and crypto trades.

1. Open a Robinhood account. To take action, you’ll must be at the least 18 years previous, have a legitimate Social Safety Quantity, and be a authorized resident of the US, together with the District of Columbia, Puerto Rico, or the US Virgin Islands. Take into account it could take as much as per week to get your account authorized.
2. Fund your account. You’ll be requested to offer and make sure your checking account quantity. With a view to make trades on Robinhood, together with cryptocurrency, you’ll want at the least $1 in your account.
3. Select a cryptocurrency to purchase. You’ll be able to select any one of many 19 cash supplied by Robinhood. Take into account there’s a minimal of 1 DOGE if you wish to put money into Dogecoin. All different cash permit for fractional purchases.
4. Select the quantity you need to purchase. You’ll be able to specify any quantity of a greenback or extra.
5. Specify whether or not you need to make a one-time commerce or a recurring one. Some buyers select to purchase further cash as soon as per week or as soon as a month, for instance.
6. Place your order. The ultimate step is to click on the “Submit Purchase” button to finish the transaction.

You’d use this very same course of to promote cryptocurrency on Robinhood. The one distinction could be that the button would say “Submit Promote”.

Is Robinhood the Proper Alternative for Your Crypto Journey?

Must you use Robinhood to purchase crypto? 

We expect Robinhood is an effective alternative for buyers who need to get their toes moist with crypto investing. Robinhood doesn’t have the identical variety of cash as some devoted crypto buying and selling platforms akin to Coinbase, however should you’re already utilizing Robinhood, then it’s simple so as to add crypto to your holdings.

Listed here are a number of execs of utilizing Robinhood for crypto investing:

• Set-up is straightforward and intuitive, and your a part of it may be accomplished in only a few minutes.
• Crypto makes its cash from quantity rebates from buying and selling venues, but it surely doesn’t cost commissions to buyers.
• Robinhood’s cell app is nicely reviewed and accessible.
• You should buy fractional shares of most crypto cash.
• Robinhood has insurance coverage and safety measures in place to stop buyers’ crypto holdings.

As we famous above, cryptocurrency has extra volatility and better danger than another investments. It’s best to solely spend as a lot shopping for cryptocurrency as you’ll be able to afford to lose and all the time attain out to Robinhood assist with any questions.

Professional Tip:

Obtain as much as $1500 in free inventory per 12 months once you refer buddies on Robinhood!

Conclusion

Is Robinhood good for crypto? We expect there are some execs that will enchantment to many buyers, notably these eager to get their toes moist in crypto investing. These embrace fee free buying and selling, the power to purchase fractional shares, and the accessibility of Robinhood’s cell app.

Some potential cons to contemplate embrace {that a} Robinhood account solely makes 19 cash obtainable for buy, far fewer than another crypto buying and selling platforms. Whereas there are some articles to learn, it’s additionally not the place to analysis which cryptocurrencies to purchase. You’ll have to spend a while investigating your choices and deciding which cash to put money into.

The underside line is that we like Robinhood for crypto, particularly for rookies. Intermediate or superior crypto buyers might choose a platform with extra superior options and extra cash obtainable.