Can You Sell Crypto For Cash On Robinhood

There are some advantages to using the trading app, but it isn’t right for everyone.

Robinhood is best known equally the stock trading app that pioneered the concept of committee-free trading several years before nigh brokerages got rid of their trading costs. Only you can besides buy Bitcoin and six other cryptocurrencies directly through the app.

Like all cryptocurrency trading platforms, Robinhood isn’t the best choice for everyone. Here’s a rundown of the key advantages and disadvantages of using Robinhood to buy Bitcoin.

Benefits of using Robinhood to buy Bitcoin

Robinhood pioneered commission-free stock trading several years agone, and while its competitors have largely caught upward to the visitor’s pricing structure in the brokerage side of the business, the same cannot be said of cryptocurrency trading.

Specifically, many of Robinhood’southward top competitors accept expensive and somewhat hard-to-understand pricing structures. For example, Coinbase charges a one.49% trading fee for most transactions, so if you want to buy $500 worth of Bitcoin, you lot pay about $7.l. And that’due south on summit of a markup, or spread, you pay over the electric current market toll. To be fair, Robinhood makes money from the spread betwixt its electric current purchase and sell prices, but that’s it — no other fees utilise.

There’s also value in having your cryptocurrency holdings and stock investments in the same easy-to-utilize app, and Robinhood certainly lets you do that. Many people look at Bitcoin as an addition to their investment portfolios, and so it makes a lot of sense to proceed all of your investments in one place. With Robinhood, you tin can. With many other cryptocurrency exchanges, not and so much.

Drawbacks of using Robinhood to buy Bitcoin

By far, the biggest drawback to Robinhood’s cryptocurrency trading platform is that
all
you tin do is purchase, hold, and sell your cryptocurrencies. In other words, you
can’t
ship your Bitcoin to another cryptocurrency wallet, spend information technology on real-globe purchases, or receive Bitcoin from other people. It doesn’t accept nearly every bit much functionality every bit most leading cryptocurrency exchanges do.

Robinhood also offers far fewer educational resources and other features. Information technology is mainly a place where you tin can buy, hold, and sell Bitcoin and a few other types of cryptocurrency. If you buy Bitcoin on Robinhood and information technology goes upwardly in value, you can sell it and make coin. But there aren’t many other reasons to use Robinhood for your cryptocurrency needs.

Finally — and this point won’t employ to investors who just desire to purchase Bitcoin — more avid cryptocurrency traders volition discover that there are other platforms with far more than cryptocurrencies to choose from than the 7 Robinhood offers. If y’all want to invest in Bitcoin and the other well-nigh popular digital assets, Robinhood probably has what you need. But if you lot’re thinking of putting some of your money in smaller, up-and-coming cryptocurrencies, you might want to expect elsewhere. For case, Coinbase offers more than 90 tradeable coins.

Should
you
apply Robinhood to buy Bitcoin?

The brusque respond is that information technology depends
why
y’all want to buy Bitcoin. If your goal is to pay for purchases using Bitcoin, or if you want to ship Bitcoin to friends or to an external Bitcoin wallet, Robinhood is not the best choice for you. On the other hand, if your goal is merely to agree Bitcoin and benefit from ascent prices over time, Robinhood can be an easy and low-price manner to do information technology, especially if you lot’re already using the platform for stock trading.