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A review of buying Bitcoin on Robinhood in February 2020 – No withdrawal but free brokerage
The rise of apps culture brings with it new means of access to tools and systems previously much more difficult to engage with.
One such app is Robinhood, which allows everyday users to easily invest in the stock market through free trades at no minimums.
Robinhood’s recently announced an extension of it platform into cryptocurrencies. Here’s what you should know about Robinhood Crypto.
Exchanges like Robinhood
What is Robinhood Crypto?
Robinhood is an iOS and Android app designed as an investment tool to connect ordinary people with financial markets. In January 2018, Robinhood announced an extension into cryptocurrencies, allowing for no-fee crypto tracking and trading. Soon, Robinhood users will be able to purchase bitcoin and other digital coins alongside more traditional investment options.
Which markets does Robinhood support?
Robinhood allows you to trade more than 5,000 stocks that include limited:
- US equities
- US exchange traded funds (ETFs)
- Cryptocurrencies — rollout scheduled for February 2018
Which cryptocurrencies can I buy and sell?
Robinhood announced a gradual rollout of cryptocurrency support. To start, crypto trading will be accessible to users in California, Massachusetts, Missouri, Montana and New Hampshire. Robinhood will odd other states shortly thereafter.
Initially, Robinhood will allow you to buy and sell:
However, it’s put together a watchlist for other cryptocurrencies that include:
- Ripple (XRP)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Qtum (QTUM)
- Ethereum Classic (ETC)
- Stellar Lumens (XLM)
- Neo (NEO)
- ZCash (ZEC)
- Monero (XMR)
- Dash (DASH)
- Bitcoin Gold (BTG)
- Lisk (LSK)
- OmiseGO (OMG)
- Dogecoin (DOGE)
The watchlist currently lets you see how each currency is performing, but Robinhood’s announced planned support for these and other currencies as the app expands.
Which payment methods are accepted?
Robinhood links directly with your bank account for deposits and withdrawals between Robinhood. You can easily add most major US bank accounts through the app’s integration feature, but smaller banks may require manually linking.
Robinhood plans to accept alternative funding options like PayPal and virtual wallets in the future.
How much does it cost to use Robinhood?
What’s made Robinhood so popular as a finance app is that it’s completely free. You’ll pay no fees, commissions or hidden charges to trade stocks. Robinhood plans to extend its no-fee trading extends to cryptocurrencies as well.
How quickly are my funds available?
After you create an account through Robinhood’s app, you’ll need to wait for account approval before you can begin trading. Approval can take a few days or longer if additional documentation is needed to verify you.
Once you’re approved, link your bank account to deposit up to $1,000 nearly instantly. Expect deposits of more than $1,000 to take four to five days to clear.
Are there any transfer limits?
Yes. Robinhood limits deposits and withdrawals to $50,000 daily. It also imposes waiting periods that limit how soon after a sale you can withdraw your funds and how long funds must be in your account before you can withdraw them. These limits are to comply with anti–money laundering regulations.
Is it safe to use Robinhood?
In general, yes. For stocks and options, Robinhood investments are insured up to $500,000. Robinhood is registered with the US Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
When it comes to cryptocurrencies purchases, however, Robinhood does not cover them to the same extent. Robinhood Crypto is not a member of FINRA or SIPC.
To use Robinhood, you’ll need to submit personal information that includes your name, Social Security number, address and date of birth. Robinhood doesn’t store your banking information, using it once to authenticate the connection between your bank account and the app.
Enhance the security of the Robinhood app by enabling Touch ID, Face ID, a custom PIN code or two-factor authentication.
Robinhood provides a thorough online knowledge base to field your questions and a ticket system for requesting further help.
Pros and cons
- Easy to use. The app makes it easy for beginners to get started with trading.
- Free trading. Pay no fees — hidden or otherwise — to invest.
- Fast approval. Deposits of up to $1,000 are approved nearly instantly.
- Limited services. Only five US states can invest in crypto initially.
- Potential withdrawal waits. To comply with regulations, you might have to wait to take out your funds.
- Doesn’t support virtual wallets. With plans to include digital wallets, you can’t deposit or withdraw to them just yet.
Get a Free Stock (Up to $500 in value) when you signup to Robinhood with this link
Robinhood has launched Robinhood Crypto, but we might expect to see cryptocurrencies beyond bitcoin and Ethereum added for trading in the future. Robinhood indicates it’s also working on a desktop platform and integrated support for virtual wallets.
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