Here's How to Buy Crypto Using Robinhood

Cryptocurrency investing has never been easier, and if you're looking for a simple way to buy Bitcoin, Ethereum, or other digital assets, Robinhood might be a good option. The commission-free trading app is well known for stocks, but it also allows users to buy and sell crypto. Here's a step-by-step guide to getting started.

Step 1: Set up a Robinhood account

If you're not a current Robinhood account holder, you'll need to create an account first. Why sign up for a Robinhood account? Robinhood offers a user-friendly platform with no commission fees on trades, making it ideal for both beginners and experienced investors. You'll also have access to a variety of investment options, including stocks, ETFs, and cryptocurrency. Plus, with fractional shares, you can start investing with as little as $1, making it easier to diversify your portfolio.

Ready to start investing? Sign up for Robinhood today!

You'll be asked to follow these steps after clicking the link above:

1. Enter your email and create a password.
2. Provide personal details like your name, address, and Social Security number (this is required for identity verification).
3. Link a bank account to fund your Robinhood account.

Robinhood may take a day or two to verify your identity, so be prepared for a short wait before you can start trading.

Step 2: Enable crypto trading

Robinhood automatically enables crypto trading for most users, but if you don't see the option, you might need to activate it manually:

1. Open the Robinhood app and tap on the search bar.
2. Type in the name of the cryptocurrency you want to buy.
3. If crypto trading isn't enabled yet, the app will prompt you to accept the terms and conditions.

Step 3: Choose the cryptocurrency you want to buy

Robinhood offers a selection of more than 20 popular cryptocurrencies, including:

• Bitcoin (BTC)
• Ethereum (ETH)
• Dogecoin (DOGE)
• Litecoin (LTC)

To find your preferred cryptocurrency, use the search bar in the Robinhood app. Once you find it, tap on it to access the trading page. You can also select the "Crypto" tab and see a list of what's available.

Step 4: Place your order

Buying crypto on Robinhood is just as easy as buying stocks. Here's how to do it:

1. On the cryptocurrency's trading page, tap the "Buy" button.
2. Enter the amount you want to invest (either in dollars or in crypto units).
3. Review your order and tap "Submit."

Robinhood executes your order at the best available price and updates your crypto holdings in the app.

Robinhood isn't the only investing app in town that lets you buy cryptocurrencies. Check out our list of the best investment apps for beginners to find a match for you.

Step 5: Manage your crypto holdings

Once you've bought crypto, you can monitor its performance in the Robinhood app. The app provides real-time price updates, charts, and news related to your holdings.

One key thing to remember: Unlike traditional crypto exchanges, Robinhood does not currently allow you to transfer your crypto to an external wallet. This means you won't have direct control over your private keys, which is a dealbreaker for some investors.

Pros and cons of buying crypto on Robinhood

Get started with Robinhood

Robinhood is a beginner-friendly way to invest in cryptocurrency, especially if you're already using the app for an IRA or stocks. However, if you want full control over your crypto, including the ability to transfer it to an external wallet, you might want to explore other options.