Crypto Myths, Busted
Whether you’re thinking about dipping your toes into crypto or are already investing and want to learn more, here are some answers to frequently asked questions.
Does Robinhood charge fees to trade crypto?
Nope! Buying and selling crypto on Robinhood Crypto is commission-free. If you place an order and spend $100 to buy bitcoin, you’ll get $100 worth of bitcoin. For us, it’s a no-brainer — yet for most other crypto exchanges, fees are still the norm and you’ll pay up to 4% just to buy and sell crypto. See for yourself.
Commission-free crypto trading isn’t a gimmick, marketing scheme, or some limited-time offer. It’s core to our mission. In the same way that many financial institutions now offer commission-free stock trading after Robinhood paved the way, we hope the same will become the norm for cryptocurrency.
How are you able to offer commission-free trading?
Just like how our brokerage routes orders, when you buy or sell crypto on Robinhood Crypto we send your order to our various trading venues so you can receive competitive prices. This allows us to offer financial products and services at low cost, including commission-free crypto trading. You can learn more about how Robinhood makes money here.
Do I own the coins I buy on Robinhood Crypto?
Absolutely! The crypto that you buy on Robinhood Crypto is yours.
There’s a dedicated, unique amount of crypto for each of our customers’ holdings, not just a number in a database to be fulfilled when the customer decides to sell. In the future you’ll also be able to withdraw your coins as we’re actively working on supporting crypto transfers.
When will I be able to transfer crypto into and out of Robinhood Crypto?
We’ve made a lot of progress behind the scenes on the designs and systems for crypto transfers, in addition to making some great key hires.
As we build these features, security remains a top priority, particularly as crypto transfers are non-recoverable. We also want to make sure we make the process as intuitive as possible, especially since this might be the first experience with transferring crypto for many of our customers. Stay tuned for more specifics on the timeline!
Which coins are you adding next?
We’re actively looking into adding new coins to Robinhood Crypto. As much as we’d love to share which ones we’re considering, we can’t share the details for security and compliance reasons. That said, we love hearing from you so keep the suggestions coming.
Why can crypto prices vary across platforms?
Crypto prices can vary, especially during times of high volatility, because crypto is listed on numerous trading platforms. Unlike stocks, where companies are often listed on only one exchange and prices are tied to the National Best Bid and Offer (NBBO), cryptocurrencies are typically listed on multiple trading platforms across the globe, each offering customers the ability to buy and sell.
The price you see for a specific cryptocurrency on a trading platform is generally based on the buy and sell orders that platform is receiving from their participants. And since each platform can have different orders from different sources, crypto prices can vary.
When you buy or sell crypto on Robinhood Crypto we send your order to our trading venues so you can receive competitive prices.
Cryptocurrency trading offered through Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Robinhood Crypto accounts are not FDIC insured or SIPC protected.
Per transaction fees are accurate as of 6/3/2021. Amounts shown are based on publicly available fee schedules from Coinbase, Gemini, and Venmo and are subject to change at any time.
Market orders on Robinhood Crypto are routed as limit orders with a collar applied to increase the likelihood that your order is executed and protect against market volatility. Market orders may execute in an amount that differs slightly from what was submitted at order entry; however, the conversion rate applied to your transaction will be the prevailing market price Robinhood Crypto receives from its trading venues for the cryptocurrency based on the executed dollar amount.