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Robinhood Review for Cryptocurrency 2024

Robinhood
4.0

Robinhood Markets is a fintech company that offers commission-free investing and trading in cryptos. The company offers cryptocurrency services through its subsidiary Robinhood Crypto, which is registered with FinCEN (Financial Crimes Enforcement Network), under the US Department of the Treasury. They offer trading in 18 top cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Solana and Shiba Inu. You can trade cryptos via Robinhood Crypto’s web-based platform or mobile app. 

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Pros & Cons

  • Pros
  • You can start with as low as $1
  • Industry-leading security
  • Ownership of coins
  • Offers wallet plus option of cold wallet
  • Cons
  • Cons No leverage

Robinhood Overview

Robinhood Crypto offers advanced tech to buy and sell the most popular cryptocurrencies at zero commission. It offers best-in-class security and even insurance for your cryptos. With zero commission and low fees, Robinhood Crypto offers a fast platform for buying, owning, and selling cryptocurrencies. They have extensive educational resources and good customer support.

  • Overall
    3.0
  • Fees
    2.0
  • Deposit and withdrawal
    2.5
  • Asset selection
    4.0
  • Ease of account opening
    4.0
  • Regulation and security
    2.5
General info
Headquarters USA
Website https://robinhood.com/
Website Languages English
Regulated check
Country of Regulation US
Regulation Type SEC
Account Base Currencies USD
Staking and Rewards uncheck
Minimum Deposit $0
Deposit Fee $0
Deposit Types Bank wire / Credit Card
Minimum Withdrawal $0
Withdrawal Fees 1.50% Credit/debit cards only info
Crypto-to-Crypto Trading Pairs uncheck Undisclosed info
Cryptocurrencies as CFDs uncheck
Islamic Account uncheck
Demo Account check
Research & Education Tools check
Customer Support Email / Live chat / Phone
Customer Support Languages English
Support Days & Hours 24/7
Automated Trading uncheck
Social Trading uncheck
Copy Trading uncheck

Company Background

Robinhood was started by two Stanford graduates, who started their entrepreneurial journey by selling their trading software to hedge funds. Having witnessed the high commission charged at every stage of trading, they decided to establish a brokerage that would not charge commission. Established on April 18, 2013, Robinhood Markets went public in July 2021.

Robinhood crypto relies on sophisticated technology to provide a powerful and secure platform to buy, own and sell cryptocurrencies. Despite the reliance on technology, the company is very human centric, both in the educational resources it shares and the support it provides to clients.

To the most common question among investors – “Is Robinhood good to buy crypto with?” – my assessment is, yes. It is a good choice for beginners and experts alike.

What is Robinhood Crypto Feature?

Robinhood Markets was founded in April 2013 by Stanford classmates Vladimir Tenev and Baiju Bhatt. They named their company Robinhood as their mission was to allow everyone an easy way to access the financial markets without having to spend a lot of money.

They launched their trading app in March 2015. In 2018, the firm set up Robinhood Crypto to allow people to buy and sell digital currencies in a safe environment without incurring huge fees. In May 2022, they launched an app that allows users to store non-fungible tokens and connect to NFT marketplaces and decentralised stock exchanges. In September, the company released a beta version of its Web3 wallet, which allows you to trade and swap cryptos with zero network fees.

Robinhood Crypto charges no commission for trading cryptos. The platform has several protocols in place to ensure ultra-secure investments in cryptos. Overall, Robinhood is good for crypto trading.

How Does Robinhood’s Crypto Feature Work?

Once you have created an account with Robinhood Crypto, you can download the app from Google Play or the App Store. You will need to fund the account. If you have a Robinhood Instant account, you will get instant access to as much as $1,000 to trade cryptos. If you have a Robinhood Gold account, you’ll get instant access to your Gold tier amount. You will have access to the rest of your amount after a short settlement time. If you were already trading stocks, ETFs, or options with the Robinhood app, you can sell some of your instruments to fund your crypto account. This will take up to 3 business days.

The Robinhood Crypto app is good quality. It is very intuitive and has lots of features to make trading more convenient.

Robinhood Crypto App

To buy a particular cryptocurrency, you can enter its name in the search bar at the top of the screen. A drop-down menu displays the different options available. Once you have selected the crypto of your choice, you can enter the US dollar amount for which you wish to buy the coin. You don’t need to buy a whole coin. You can gain exposure to cryptos with as little as $1, buying a fraction of your favourite cryptocurrency.

You can then review your order and confirm it to complete the transaction. A similar procedure can be followed for selling cryptos. The transactions are done at market price by default. However, if you wish to buy or sell at a particular price only, you can choose ‘limit order’ from the drop-down menu.

What is the Downside of Robinhood?

The primary drawback I discovered in conducting my Daily Crypto review was that the number of cryptocurrencies is limited to approximately 20. However, to keep your coins safe, I believe it’s best to choose a reliable broker or exchange rather than going by the number of cryptos offered. Robinhood is safe to buy cryptos.

Robinhood Crypto Wallet

Robinwood offers a web3 wallet for trading or swapping cryptos with no network fees. This wallet provides users full control over their crypto on the polygon (MATIC) network, allowing them to hold and maintain the private key to their assets.

You can fund your wallet from Robinhood Crypto or from another wallet or exchange. Robinhood Crypto currently supports only USDC and MATIC transfers to its wallet. You also have the option of importing a self-custody wallet to the Robinhood wallet by using your existing wallet’s secret recovery phase. I found the wallet easy to use and the good part is that there are no transfer fees involved. The wallet has two-factor authentication and enhanced security.

Robinhood Crypto Trading Fees

Is Robinhood good for crypto trading? The answer is yes, especially since it offers commission free trading. It also does not charge anything for deposits, withdrawals, or inactivity. There are no debit card ATM fees, provided you use one of the 75,000+ ATMs in the Allpoint or MoneyPass networks. For out-of-network ATM withdrawals, there may be a fee levied by the ATM provider. Robinhood does not charge any fees for foreign transaction fees. Currencies are converted at the rate selected by Mastercard.

FeesAmount
Deposit Fee $0
Credit/Debit card Deposit Fees $0
E-wallets Deposit Fees $0
Bank transfer Deposit Fees $0
Withdrawal Fee $0
Credit/Debit card Withdrawl Fees 1.5%
E-wallets Withdrawl Fees $0
Bank transfer Withdrawl Fees $0
Inactivity Fees uncheck
Swap Fees(Instead of Overnight Fees) check
Spread / Commission Fees check
Currency conversion Fee check
Max Leverage 1:2
Minimum Spread Undisclosed

Robinhood is good for crypto trading, especially since it offers commission free trading. It also does not charge anything for deposits, withdrawals, or inactivity.

Robinhood charges no crypto conversion fees. Robinhood levies charges for any hardcopy requirements that you may have. For example, if you need paper statements, paper confirmation with details of a trade, or any mail that you may want them to send you via post. If your requirements are completely digital, there are no associated costs.

There are no debit card ATM fees, provided you use one of the 75,000+ ATMs in the Allpoint or MoneyPass networks.

For out-of-network ATM withdrawals, there may be a fee levied by the ATM provider. Robinhood does not charge any fees for foreign transaction fees. Currencies are converted at the rate selected by Mastercard.

Trading Fees

You can buy, hold, and sell cryptos with zero commission. Robinhood charges a regulatory trading fee of $5.10 for every $1 million of principal on sales made by a customer.

Robinhood’s crypto spreads are competitive and are not marked up

Leverage Fees 

Since you buy and sell the underlying asset, there is no leverage offered for cryptos. Due to this, there are neither leverage fees nor overnight fees.

Robinhood Gold Fees 

Robinhood Gold offers a range of tools, data, and features to help you make better investment decisions. With this, you can earn 4% interest on your uninvested brokerage cash with cash sweep. Robinhood Gold is free for the first 30 days, after which a monthly fee of $5 is charged.

Robinhood Deposit & Withdrawal

Funding methodSupportedMinimum DepositMinimum Withdrawal
Bank wire check $0 $0
Credit Card check $0 $0
PayPal uncheck
Skrill uncheck
Neteller uncheck
FastPay uncheck
UnionPay uncheck
PayRedeem uncheck
PerfectMoney uncheck
POLi Payments uncheck
Przelewy 24 uncheck
Payoneer uncheck
Rapid Transfer uncheck
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Other Payment Methods

Here are other various ways in which you can add money to your Robinhood account:

  • Connect Cash App Card to Robinhood
  • Connect Chime to Robinhood
  • Via the Netspend Card
  • Direct Deposits through your employer
  • Transfer of cryptos from another wallet
  • Instant transfer of proceeds from the sale of instruments traded with your Robinhood account

Supported Cryptocurrency

Coin nameCoin SymbolCoin icon
BitcoinBTCBitcoin
TetherUSDTTether
EthereumETHEthereum
AvalancheAVAXAvalanche
BinanceBNBBinance
ChainlinkLINKChainlink
CosmosATOMCosmos
DaiDAIDai
DogecoinDOGEDogecoin
LitecoinLTCLitecoin
MoneroXMRMonero
PolkadotDOTPolkadot
PolygonMATICPolygon
RippleXRPRipple
Shiba InuSHIBShiba Inu
StellarXLMStellar
TRONTRXTRON
UniswapUNIUniswap
USD CoinUSDCUSD Coin

Supported Countries

Robinhood accepts clients resident in almost all countries except: Cuba, Iran, North Korea, Syria, Crimea region of Ukraine.

Robinhood Crypto vs. Robinhood Financial

Both Robinhood Financial LLC and Robinhood Crypto LLC are wholly owned subsidiaries of Robinhood Markets Inc. You can open a brokerage account with Robinhood Financial for trading equities and options but for buying and selling cryptos you need to open an account with Robinhood Crypto. Neither of these entities charges any commission and it is easy to transfer funds instantly between your accounts.

Robinhood Trading Platforms

PlatformSupported
Proprietary Platform check
MetaTrader 4 (MT4) uncheck
MetaTrader 5 (MT5) uncheck
cTrader uncheck
DupliTrade uncheck
ZuluTrade uncheck

Mobile App

The Robinhood mobile app can be used for buying and selling cryptos. The app is simple to use and has inbuilt security features, like two-factor authentication. Its search feature is good and there are several charts, tools, and indicators to choose from. You can buy and sell directly from the chart. 

The Robinhood mobile app also has educational resources and 24/7 live chat support.

Robinhood Mobile App

How to Start a Robinhood Crypto Account?

Here’s how to start a Robinhood account in simple steps:

  1. Download the Robinhood app from Google Play or App Store.
  2. Apply within the app. For this, you will need to provide your personal information including financial and tax identification details. This is required for security purposes, in-line with the SEC customer identification rule.
  3. You may be asked for more details.
  4. Once all your details have been provided, it usually takes them five to seven days to review your documents and send the confirmation (approval) email to open your account.

Regulation & Security

Robinhood Crypto is legit. It is regulated by FinCEN as a money services business, a bureau in the US Treasury Department. The company, being an innovative fintech firm, employs robust technology to offer clients industry-leading security. Nearly all the cryptos of clients are held in cold storage. Sensitive client information, like social

security numbers, is encrypted before being stored.

Robinhood Crypto carries crime insurance for a part of the digital assets held in their storage systems against cybersecurity breaches and theft.

Country of the RegulatorName of the RegulatorLicence Number
USAFinCEN – Financial Crimes Enforcement NetworkN/A

Customer Service

Customer Support
Days Monday to Friday
Hours 24/7
Live Chat check
Email check
Phone check
Supported Languages English
How fast was customer support when we tried? Slow

Why Should I Use Robinhood?

Robinhood is a leading company for buying and selling cryptos with zero commission. You can hold your cryptos in your Robinhood account in a safe environment. Its app is intuitive and fast. What I liked the most about them is that you can begin crypto trading with as little as $1. They provide 24/7 customer support, and their customer care people are knowledgeable and helpful.

Conclusion

Robinhood is a great choice for all levels of cryptocurrency traders. Offering a simple user interface, it allows you to buy the top cryptocurrencies without any commission. It has introduced a crypto wallet that allows users to withdraw cryptocurrency and hold it or send it to someone else.

FAQ

  • Is Robinhood a certified broker?
    Yes, Robinhood Crypto is registered with FinCEN (Financial Crimes Enforcement Network), under the US Department of the Treasury.
  • Can you trade crypto on Robinhood?
    Yes, you can buy, hold, and sell cryptocurrencies if you have opened an account with Robinhood Crypto.
  • Can I trust Robinhood with my crypto?
    Yes, Robinhood is a high-trust company that offers high security for cryptos. You have complete ownership of your coins, and these are held in cold storage for maximum security. Also, Robinhood holds crime insurance against theft and cybersecurity breaches.
  • Is Robinhood good for beginners?
    Robinhood is a good choice for beginners who wish to invest a small amount and don’t want to bear commission charges. Robinhood provides excellent customer support that is available 24/7. Also, they have a lot of educational material that you can use to get started.
  • Is Robinhood a good crypto trading platform?
    Yes, Robinhood is a good crypto trading platform because it has an easy user interface that makes trading simple.
  • Is Robinhood crypto available in all states?
    Robinhood Crypto is available in all US states, except Hawaii and Nevada.
  • Can you buy and sell crypto as much as you want on Robinhood?
    The position limit for Bitcoin, Ethereum and Dogecoin is $16,000,000 per crypto. That limit for Bitcoin Cash, Bitcoin SV, Litecoin and Ethereum Classic is $5,000,000 per crypto.
  • Can you trade bitcoin on Robinhood?
    Yes, you can buy and sell bitcoin and many other popular cryptocurrencies on Robinhood.
  • What is the best cryptocurrency to invest in on Robinhood?
    Robinhood offers the most popular cryptos like Bitcoin, Ethereum, Dogecoin, Litecoin and Solana, and historically, Bitcoin has been the most reliable investment within the crypto asset sector.
  • Can you get cash out of Robinhood if you sell cryptocurrency?
    Yes, you can sell your cryptocurrency and transfer cash into your bank.
  • Can I transfer my crypto from Robinhood to Coinbase?
    Yes, you can transfer your crypto from Robinhood to Coinbase. If you have a Robinhood wallet, the transfer is seamless.
author
About Marcel Deer
With a background in journalism and digital marketing, Marcel is a keen crypto enthusiast and investor. A regular contributor to several crypto publications, he believes that META-based projects will soar in the coming years and is super-bullish on MeritCircle and the increase in P2E gaming platforms. Marcel is also excited about AVAX and FTM as ETH-chain alternatives, and any projects with strong utility, transparency, experience, and community marketing.