Crypto Investing: Robinhood's Guide To Getting Started

Robinhood is a beginner-friendly trading platform that offers an easy way to buy, sell, and trade cryptocurrencies. It supports 15 crypto assets, including BTC, ETH, DOGE, SHIB, AVAX, LTC, UNI, ETC, LINK, and XLM. Users can also buy and sell stocks, options, and ETFs. The platform offers no-commission crypto trading, allowing users to start investing in crypto with as little as $1. Robinhood also provides advanced trading tools, such as custom price alerts and advanced charts, to help users build trading strategies and manage their crypto investments. Additionally, it offers industry-leading security measures, such as cold storage for the majority of customers' coins and crime insurance against theft and cybersecurity breaches.

How to buy crypto on Robinhood

To get started with buying crypto on Robinhood, you must first meet the requirements for signing up for a Robinhood Crypto account. You must be 18 years or older, have a valid Social Security Number, have a legal U.S. residential address, and be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa.

Once you have a Robinhood Crypto account, you can start buying and selling crypto. You can buy as little as $1 of crypto and grow your holdings over time. With the exception of Dogecoin, which has a minimum of 1 DOGE, there’s no need to buy or sell a full coin on Robinhood Crypto.

To buy crypto, search and select the crypto you want to buy, enter the amount you’d like to buy, and select the frequency for this order, such as One-time or Every month. Then, swipe up to submit your order.

Robinhood Crypto supports buying, selling, and real-time market data for cryptocurrencies such as BTC, ETH, DOGE, SHIB, AVAX, LTC, UNI, ETC, LINK, XLM, and AAVE.

Robinhood Crypto does not charge commission fees for trading crypto. However, other fees may apply, such as for Robinhood Connect.

How to sell crypto on Robinhood

Robinhood is a brokerage firm that has gained popularity over the years by giving people easy access to financial markets. It has been around since 2013 and is great for trading cryptocurrencies. Robinhood allows you to keep your cryptocurrency in an app that is very easy to use, and you can also keep it together with all your other investments.

Robinhood doesn't charge commissions for crypto trading, and the time it takes for crypto sales to become available for purchase may vary. The exchange allows you to open an account in only a few minutes, and it offers free cryptocurrency trading.

On iOS devices:

• Go to the application and navigate to the Detail page of the cryptocurrency.
• Look in the upper right corner and tap "Order Types".
• Choose the order type that you prefer.
• Confirm your order.
• To submit the order, swipe up.

On Android devices:

• Go to the Robinhood homepage on the mobile app.
• Scroll down until you reach the cryptocurrencies you currently have.
• Select the cryptocurrency that you wish to sell.
• Tap on "Sell".
• Enter how much you would like to sell or use the option "Select All BTC" if you want to sell the entire crypto amount. To make things easier, the amount you have available will also appear at the top of the page.
• Review the information and confirm it.
• Swipe up to submit your order.

On the web:

• Access Robinhood and then navigate to the Detail page of the cryptocurrency.
• From the order window on the right side of your screen, click "Sell".
• Now, enter the amount of cryptocurrency you would like to sell, or choose to sell the entire amount.
• Click "Review" and check whether the information is correct before proceeding.

Robinhood offers some of the most popular cryptos, including Bitcoin, Bitcoin SV, Bitcoin Cash, Ethereum, Ethereum Classic, Dogecoin, and Litecoin. Robinhood also declared that they are planning to add more coins to the platform.

How to transfer crypto from Robinhood to a wallet

Robinhood allows users to transfer cryptocurrencies from their Robinhood Crypto accounts to other crypto wallets. To do this, you must first verify your identity and add two-factor authentication to your account. After completing these steps, it can take up to 5 business days for Robinhood to review your information and enable crypto transfers.

Once crypto transfers are enabled, follow these steps to transfer crypto from your Robinhood Crypto account to your wallet:

• Go to the crypto's detail page.
• Enter the amount you want to send.
• Paste the crypto address of the receiving wallet.
• Review and submit your transfer request.

It's important to note that Robinhood does not charge any fees for sending or receiving crypto. However, every on-chain crypto transaction incurs a network fee, also known as a miner fee or gas fee. This fee is collected by the crypto network that facilitates the transfer, and the amount depends on factors such as the coin and the number of transactions on the network. Robinhood will always provide an estimate of the network fee before you finalize the transfer.

Additionally, it's crucial to only send crypto to compatible addresses and networks. For example, only send crypto on Polygon to another wallet or exchange that supports Polygon. Sending crypto to an incompatible address may result in a loss.

The pros and cons of using Robinhood for crypto

Robinhood is a popular trading app, especially for first-time investors, that offers an easy-to-use platform for buying and selling crypto. Here are some pros and cons of using Robinhood for crypto:

Pros:

• User-friendly interface: Robinhood has a user-friendly mobile app, making it a great platform for beginners.
• Low fees: Robinhood offers no-commission trading, allowing users to buy and sell crypto without paying any fees.
• Diverse investment options: In addition to crypto, Robinhood allows users to invest in stocks, ETFs, and options, providing a wide range of investment opportunities.
• Security: Robinhood provides industry-leading security measures, such as cold storage for the majority of customers' coins, crime insurance, and 24/7 customer support.
• Regulation: Robinhood is regulated and licensed by the New York State Department of Financial Services, providing oversight and added security for users.
• Crypto wallets: Robinhood introduced Crypto Wallets in 2022, allowing users to send and receive crypto to and from other crypto wallets.

Cons:

• Limited crypto features: As Robinhood is not a crypto-first platform, it lacks certain features like cryptocurrency interest and staking offered by crypto-only platforms.
• Limited crypto selection: Robinhood only supports a limited number of cryptocurrencies (around 15) compared to crypto-only platforms, which offer a much wider range.
• Spreads: Robinhood has been criticised for its 'spreads', which refer to the difference between the listed price and the real price of an asset. These spreads can be higher for lesser-known cryptocurrencies.
• Reliability: Robinhood has faced criticism in the past for its handling of the GameStop short squeeze in 2021, which raised questions about its commitment to retail investors.
• Customer support: Robinhood has been criticised for delays in responding to customer support requests and for providing unhelpful responses.

How Robinhood compares to other crypto platforms

Robinhood is a good option for those looking to cut costs when investing in crypto. However, there are some limitations to the platform, and other crypto platforms may offer a more comprehensive service. Here is a comparison of Robinhood with other crypto platforms:

Crypto.com:

Crypto.com offers a much wider selection of crypto assets, staking functionality, DeFi web browsing, and a discount-enabling stablecoin. It has proven itself in a difficult environment, maintaining its services even during the crypto crash of late 2022. Crypto.com was also the only crypto platform to receive 5 stars on the NerdWallet roundup of the best crypto platforms and exchanges. However, Robinhood's interface is simpler, and crypto trading is completely free.

Webull:

Webull is very similar to Robinhood, offering free trades on stocks, options, ETFs, and cryptocurrency. It also provides tools for intermediate and advanced traders that Robinhood lacks. However, Robinhood's simplicity and ease of use are a significant advantage, especially for beginners. Additionally, Robinhood offers IPO Access, giving retail investors the chance to buy into IPOs before they start trading on the market.

Fidelity:

Fidelity is one of the largest brokerages in the country, managing trillions of dollars in assets. It offers a comprehensive brokerage service that grows with investors as their needs evolve. While it doesn't offer cryptocurrencies, it provides a wide range of investment options, including stocks, corporate and government bonds, mutual funds, ETFs, fractional shares, options, FOREX, and precious metals. Fidelity also provides better customer support than Robinhood, with 24/7 phone, email, and live chat support, along with over 200 local branches.

Acorns:

Acorns is a mobile-first investment app that is geared towards long-term savers. It offers a unique feature called "round ups," where it rounds up the change from everyday purchases made with an Acorns debit card and automatically invests it. While Acorns provides a responsible way to invest for the long term, it doesn't offer the same freedom to invest in individual stocks as Robinhood.

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