Robinhood is a popular investing app that allows users to trade stocks, options, exchange-traded funds (ETFs), and cryptocurrencies commission-free. Here is a step-by-step guide on how to purchase cryptocurrency on Robinhood:
Table of Contents
Step 1: Sign Up for a Robinhood Account
First, you’ll need to sign up for a Robinhood account if you don’t already have one. Downloading the Robinhood mobile app is the easiest way to get started. You can find the app in the App Store for iOS devices or Google Play for Android.
During signup, you’ll need to provide personal details like your name, email address, and phone number. Robinhood also requires your social security number and photo ID for identity verification purposes.
Step 2: Fund Your Robinhood Account
Before you can purchase cryptocurrency, you’ll need to deposit money into your Robinhood account.
You can fund your account by linking a bank account, debit card, or making a wire transfer. Bank account transfers are free and the funds are usually available within 3-5 business days.
Debit card transfers are instant but have a 1.5% fee. Wire transfers have a $25 fee for domestic wires and a $50 fee for international wires.
Once your account is funded, you can start purchasing cryptocurrency. Open the Robinhood mobile app and tap on the “Crypto” tab at the bottom.
This will bring you to the Robinhood Crypto page where you can view market data on various cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.
Step 4: Search for the Cryptocurrency You Want
Use the search bar at the top of the Robinhood Crypto page to find the specific cryptocurrency you want to purchase. For example, if you want to buy Bitcoin, search for “BTC”.
Tap on the cryptocurrency you want once you’ve found it. This will open a page with market data, news headlines, and options to buy or sell the crypto.
Step 5: Tap “Trade” and Enter Order Details
To place a buy order, tap on the “Trade” tab. This will open an order form to enter the details.
First, enter the dollar amount of cryptocurrency you want to purchase. Robinhood allows you to buy fractional coins, so you don’t need to purchase a whole unit.
Next, select the order type. Market buy orders purchase the crypto immediately at the current market price. Limit buy orders let you specify the maximum price you’re willing to pay per coin.
Step 6: Review and Submit the Order
Carefully review the order details before submitting to ensure everything is correct. Also make sure you have enough money in your Robinhood account to cover the purchase.
If everything looks good, tap “Submit Buy Order” to complete the crypto purchase.
The coins will now show in your Robinhood Crypto portfolio. You can tap on them to view performance graphs and data.
Tips for Purchasing Crypto on Robinhood
- Enable two-factor authentication for additional account security
- Stick to purchase limits until you better understand crypto price volatility
- Transfer coins to an external crypto wallet to control your private keys
- Review Robinhood’s crypto and virtual currency disclosures before investing
- Use dollar cost averaging strategies when buying cryptocurrency over time
Purchasing cryptocurrency on Robinhood takes just a few quick steps. With no trading commissions and fractional coin investing, it has become a popular platform for beginner and experienced crypto investors alike. Just be sure to keep safety and security top of mind when buying cryptocurrency.
