How Robinhood Crypto Keeps Your Coins Safe
The cryptocurrency revolution has challenged the very notion of how we conceive of money. In many ways, the rules and norms around cryptocurrency have yet to be established, but one way in which cryptocurrency falls in line with Robinhood’s other offerings is in how we approach security.
Security for crypto is especially complex — a combination of public verifications of integrity and private decisions, like where to store coins and protect them from malicious actors. Our security and custody system ensures that the coins stored by Robinhood Crypto are always safe and available to you. The crypto that you buy is yours and we consider how to best safeguard it in every decision that we make.
Just as a bank stores its most valuable items in its strongest vault (you know, thick door with a spindly wheel, gears and such), Robinhood Crypto uses a number of security features to keep your crypto safe.
Our crypto custody system consists of a combination of hot wallets and cold storage, admittedly funny terms for important concepts. Cold storage is a way of protecting the private keys of our customers’ crypto separated from the internet (you can probably guess what the “hot” alternative is), and provides an additional layer of protection against breaches. The vast majority of our customers’ coins reside in cold storage. We practice strict operational security when managing cryptocurrencies, and regularly have outside security auditors test the system’s integrity. To support day-to-day operations, a small percentage of coins are held in hot wallets with additional layers of security to protect against breaches.
On top of all of that, sometimes the best insurance is, well, regular insurance. Robinhood carries crime insurance that protects a portion of the assets held across our custody system against losses from theft, including cybersecurity breaches. The policy is underwritten by certain underwriters at Lloyd’s, the world’s leading insurance marketplace, and placed by Lloyd’s registered broker, Aon.
Securing cryptocurrency on our customers’ behalf also means 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. We don’t trade or lend that crypto for our own purposes and benefit — you own the coins you purchase through Robinhood Crypto, and soon you’ll be able to withdraw them as well as we’re actively working on supporting deposits and withdrawals.
Through a combination of security measures — top-tier engineering and operational security, as well as good old-fashioned insurance — you can rest assured that your crypto holdings are safe with Robinhood Crypto. You own your coins, and they don’t leave our custody unless you sell them. Crypto security can be tricky, especially since it’s a young technology that’s constantly evolving and growing. Investing with Robinhood Crypto lets you invest in confidence. You can read more about how we keep your coins safe in our Help Center.
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 subject to FDIC or SIPC protections.