You cannot transfer crypto directly out of Robinhood to another wallet or exchange
Robinhood does not allow you to send cryptocurrency to an external wallet or move it to another platform. When you buy crypto on Robinhood, you own it through Robinhood's system, but you cannot withdraw the actual coins or tokens to a self-hosted wallet, a hardware wallet, or another exchange like Coinbase or Kraken.
This is a core difference between Robinhood and most other crypto platforms. On Robinhood, you can only buy, sell, and hold crypto within the app. If you want to move your holdings elsewhere, you must sell them on Robinhood first, then use the cash to buy crypto on a different platform that does support withdrawals.
Robinhood has stated that they are working on adding withdrawal functionality, but as of now, no timeline has been announced and the feature is not yet available.
Key Takeaways
- Robinhood does not support sending crypto to external wallets, hardware wallets, or other exchanges.
- To move your crypto holdings elsewhere, you must sell them on Robinhood and withdraw the cash to your bank account.
- You can then use that cash to purchase the same crypto on a platform that does support withdrawals, such as Coinbase, Kraken, or Gemini.
- Selling and repurchasing may trigger capital gains taxes if your holdings have increased in value since you bought them.
What happens when you sell crypto on Robinhood
When you sell cryptocurrency on Robinhood, the proceeds are converted to cash and held in your Robinhood account. This cash sits in your account balance and is separate from any money in your linked bank account.
You can then withdraw this cash to your linked bank account using Robinhood's withdrawal feature. The withdrawal typically takes one to three business days to appear in your bank, depending on your bank's processing speed. Once the money is in your bank account, you own it outright and can use it however you want, including to buy crypto elsewhere.
The key point: selling your crypto on Robinhood and moving the money to your bank is the only way to get your funds out of the Robinhood system. There is no direct path from Robinhood crypto holdings to another platform.
Tax consequences of selling and moving your crypto
When you sell cryptocurrency on Robinhood, the IRS treats it as a taxable event. If the price of the crypto has risen since you bought it, you owe capital gains tax on the profit. If it has fallen, you may be able to claim a capital loss.
Robinhood tracks your cost basis (the price you paid) and reports your sales to the IRS on Form 8949. You will receive a tax document from Robinhood showing all your sales for the year. The tax you owe depends on how long you held the crypto: if you held it for less than one year, it is taxed as short-term capital gains at your ordinary income tax rate; if you held it for more than one year, it is taxed at the lower long-term capital gains rate.
Before you sell and move your holdings, consider talking to a tax professional about the tax impact, especially if you have large gains or have held the crypto for a long time.
Platforms that do allow crypto withdrawals
If you want to move crypto to an external wallet or another platform, you will need to use an exchange that supports withdrawals. These platforms let you send your coins or tokens to any wallet address you control or to another exchange.
Common platforms with withdrawal features include Coinbase, Kraken, Gemini, Crypto.com, and Kucoin. Each has different fees, supported cryptocurrencies, and withdrawal minimums. Some charge a flat fee per withdrawal, while others charge a percentage of the amount you withdraw. Withdrawal times also vary: some are when ready, while others take several hours or longer depending on network congestion.
When you move crypto to an external wallet, you become responsible for keeping your private keys or seed phrase safe. If you lose access to your wallet, there is no customer service team that can recover your funds. This is why many people use hardware wallets like Ledger or Trezor to store large amounts of crypto — they are designed to keep your keys offline and find.
Why Robinhood does not allow withdrawals
Robinhood's model is built around simplicity and ease of use for beginners. The company holds all customer crypto in custody, meaning Robinhood owns the private keys and manages the wallets on your behalf. This approach removes the technical barrier of managing your own wallet, but it also means you cannot move your holdings elsewhere.
Robinhood has said that adding withdrawal functionality would require significant changes to their infrastructure and compliance processes. The company would need to manage the technical and legal complexity of letting millions of users withdraw crypto to external addresses, which carries regulatory and security risks.
Some users see this as a limitation; others see it as a trade-off for a simpler, more beginner-friendly experience. If self-custody and the ability to move your crypto freely is important to you, Robinhood is not the right platform.
Steps to move your crypto from Robinhood to another platform
If you decide to move your holdings, here is the process:
- Open the Robinhood app and go to your crypto holdings.
- Select the cryptocurrency you want to sell.
- Tap "Sell" and enter the amount you want to sell.
- Review the order and confirm the sale.
- Wait for the sale to complete (usually when ready).
- Go to your account menu and select "Transfers" or "Withdraw".
- Enter the amount of cash you want to withdraw and select your linked bank account.
- Confirm the withdrawal and wait for the money to arrive in your bank (one to three business days).
- Log into your account on the new platform (Coinbase, Kraken, etc.).
- Deposit the cash from your bank account into your new platform account.
- Use that cash to buy the same crypto you sold on Robinhood.
The entire process typically takes three to five business days from the time you sell on Robinhood to the time you own crypto on the new platform. During this time, you are holding cash instead of crypto, so you are exposed to price changes. If the price of the crypto rises while your money is in transit, you will pay more to buy it back on the new platform.
Frequently Asked Questions
Will Robinhood ever add the ability to withdraw crypto?
Robinhood has stated that they are exploring withdrawal functionality, but no official launch date has been announced. The company has been working on this feature for years, so it may happen eventually, but there is no may provide or timeline. Check Robinhood's official announcements or support page for updates.
Can I transfer my Robinhood crypto to another person's wallet?
No. Robinhood does not support transfers of any kind — not to external wallets, not to other people's accounts, and not to other exchanges. Selling and repurchasing on a different platform is the only option.
What if I want to keep my crypto on Robinhood but move some to a wallet?
You cannot do this directly. You would have to sell the portion you want to move, withdraw the cash, buy it on another platform, and then withdraw it from that platform to your wallet. This process incurs transaction fees and potential tax consequences.
Are there fees for withdrawing cash from Robinhood after I sell crypto?
Robinhood does not charge a fee to withdraw cash to your linked bank account. However, your bank may charge a fee for receiving an incoming transfer, depending on your account type. Check with your bank about their policies.
What happens to my crypto if Robinhood goes out of business?
Robinhood is a registered broker-dealer and holds customer crypto in custody. Your holdings are protected by Robinhood's insurance and regulatory requirements, but this is different from FDIC insurance for bank deposits. If you want full control and insurance protection, you would need to move your crypto to a self-hosted wallet or a platform that offers different custody options.