You cannot transfer cryptocurrency directly into Robinhood from another wallet or exchange
Robinhood does not accept incoming crypto transfers. You cannot send Bitcoin, Ethereum, or any other cryptocurrency from an external wallet, another exchange, or a friend's account into Robinhood. The platform only lets you buy crypto using cash that is already in your Robinhood account.
If you own cryptocurrency elsewhere and want to hold it in Robinhood instead, you will need to sell it where it currently lives, move the cash to your bank account, deposit that cash into Robinhood, and then buy the same cryptocurrency again inside Robinhood. This process involves transaction fees at each step and may trigger tax consequences depending on whether the value changed between when you sold and when you bought again.
The reason Robinhood does not accept transfers is a business choice, not a technical limitation. Other brokers and exchanges do accept incoming crypto transfers. If you frequently move crypto between platforms, a different service may fit your needs better.
Key Takeaways
- Robinhood does not accept cryptocurrency transfers from external wallets, other exchanges, or other people's accounts.
- To move crypto into Robinhood, you must sell it elsewhere, withdraw cash to your bank, deposit cash into Robinhood, and buy crypto again inside the app.
- Each step in this process may involve fees charged by the exchange where you sell, your bank, and Robinhood when you buy.
- Selling crypto and buying it again at a different price may create a taxable event that you will need to report.
How to deposit cash into Robinhood to buy crypto
Once you have cash in your bank account, you can move it into Robinhood and use it to purchase cryptocurrency. Open the Robinhood app, tap the account icon at the bottom right, and select "Transfers". Choose "Transfer money in" and pick your bank account from the list. Robinhood will show you the available transfer methods: ACH transfer (usually free but takes one to three business days) or when ready transfer (available when ready but may have a fee depending on your account type).
Enter the amount you want to transfer and confirm. Once the money appears in your Robinhood account, you can buy crypto when ready. Go to the Investing tab, search for the cryptocurrency you want, and tap "Buy". Enter the amount in dollars or the number of shares, review the price, and confirm the purchase.
What happens to the value between selling and buying
Cryptocurrency prices move constantly. If you sell Bitcoin on one exchange at $45,000 and the price rises to $46,000 by the time your cash settles and you buy it back in Robinhood, you have lost $1,000 in value. The reverse is also true: if the price falls, you gain. This price movement is a real cost of the transfer process, separate from any fees.
To minimize this risk, some people move smaller amounts more frequently rather than waiting to accumulate a large sum. Others accept the price risk as part of switching platforms. There is no way to avoid it entirely unless you use an exchange that accepts incoming transfers.
Tax reporting when you sell and rebuy crypto
Selling cryptocurrency is a taxable event. The IRS treats it as a sale of property, and you owe tax on the difference between what you paid for it originally and what you sold it for. If you bought Bitcoin for $30,000 and sold it for $45,000, you have a $15,000 gain that must be reported on your tax return, even if you when ready buy Bitcoin again at $45,000.
When you buy crypto again in Robinhood, that purchase price becomes your new cost basis for future tax purposes. Keep records of the sale price and the date you sold, the date you bought in Robinhood, and the price you paid. If you move crypto frequently, use a tax tracking tool or spreadsheet to record each transaction, because the IRS requires you to report gains and losses accurately.
Fees at each step of the transfer
Moving crypto out of one platform and into Robinhood involves multiple fees. When you sell on your current exchange, you may pay a trading fee (typically 0.1% to 0.5% of the sale amount). When you withdraw cash to your bank, some exchanges charge a withdrawal fee. Your bank may also charge a fee for receiving an incoming transfer, though most do not.
When you deposit cash into Robinhood via ACH, there is usually no fee. when ready transfers may have a fee depending on your account status. When you buy crypto in Robinhood, you pay Robinhood's trading fee, which varies by cryptocurrency but is typically built into the price you see (not shown as a separate line item). Add these fees together and compare them to the cost of using a platform that does accept incoming transfers, if that matters to your situation.
Alternatives if you want to keep crypto off Robinhood
If you own crypto in a separate wallet or exchange and prefer to keep it there rather than moving it to Robinhood, you can still use Robinhood to buy and hold a separate amount. Many people hold crypto in multiple places for different reasons: a hardware wallet for long-term storage, a dedicated exchange for frequent trading, and a brokerage like Robinhood for convenience alongside stocks and funds.
If you want a single platform that accepts incoming crypto transfers, look at exchanges like Kraken, Coinbase, or Gemini, which allow you to deposit crypto from external wallets. These platforms charge different fees and have different features than Robinhood, so compare them based on what you actually plan to do.
Why Robinhood does not accept crypto transfers
Robinhood's design treats cryptocurrency as an investment product similar to stocks or funds, not as a currency or asset you move between wallets. The platform is built around buying and selling within the app, not managing external wallets or accepting deposits from outside sources. This simplifies the user experience for people who want to buy crypto without managing private keys or external wallets, but it limits flexibility for people who already own crypto elsewhere.
This is a deliberate business choice, not a technical problem. Robinhood could build the infrastructure to accept incoming transfers if it chose to. The company has decided that the added complexity is not worth it for its customer base, which tends to be newer investors who prefer simplicity over advanced features.
Frequently Asked Questions
Can I send crypto from Robinhood to another wallet or exchange?
No. Robinhood does not allow you to withdraw or transfer crypto out of your account. You can only sell it for cash within Robinhood. If you need to move crypto to another platform, you must sell it in Robinhood, withdraw the cash to your bank, and then buy it again elsewhere.
What if I have a very small amount of crypto on another exchange — is it worth moving?
Probably not. The fees and price movement during the transfer process may cost more than the crypto is worth. If you have $50 in Bitcoin elsewhere, the fees to sell, transfer, and rebuy could easily be $5 to $10. For small amounts, it is usually cheaper to leave the crypto where it is or abandon it if the exchange is closing.
Does Robinhood charge a fee to buy crypto?
Robinhood does not show a separate trading fee for crypto purchases. Instead, the fee is built into the price you see — the bid-ask spread. When you buy Bitcoin, the price Robinhood shows you is slightly higher than the market price, and that difference is Robinhood's revenue. The exact spread varies by cryptocurrency and market conditions.
If I sell crypto on another exchange, how long until I can buy it in Robinhood?
It depends on your transfer method. An ACH transfer from your bank to Robinhood usually takes one to three business days. An when ready transfer is available when ready but may have a fee. The sale itself on the other exchange settles within one to two business days. Plan for three to five business days total if you use standard ACH transfers.
Will I owe taxes if I sell crypto on one exchange and buy the same crypto on Robinhood?
Yes. Selling is a taxable event regardless of whether you buy the same asset again when ready after. You owe tax on the gain or loss from the sale. Buying it again does not erase the tax obligation — it just resets your cost basis for future gains or losses.