Robinhood's crypto offering compared to dedicated exchanges

Robinhood lets you buy and sell Bitcoin, Ethereum, and about 15 other cryptocurrencies directly in the app alongside stocks and options. You pay no trading fees, can start with small amounts, and see real-time prices. But Robinhood is not a cryptocurrency exchange — it's a brokerage that happens to sell crypto. That difference matters for what you can and cannot do.

On Robinhood, you own the crypto in the sense that you can sell it anytime, but you cannot transfer it to a wallet, lend it out, or move it to another platform. You also cannot use advanced trading tools like limit orders on most coins, set up recurring purchases, or trade during off-hours. If you want those features, you would need to use a dedicated crypto exchange like Kraken, Coinbase, or Gemini instead.

The choice between Robinhood and a crypto exchange depends on what you actually want to do. If you want to buy crypto and hold it in one place alongside your stocks, Robinhood works. If you want to move crypto between wallets, trade on margin, or access dozens of smaller coins, Robinhood will not do that.

Key Takeaways

  • Robinhood charges no trading fees for crypto, but you cannot withdraw coins to an external wallet or use advanced trading features.
  • You can buy about 17 cryptocurrencies on Robinhood, but not the thousands of smaller coins available on dedicated exchanges.
  • Robinhood's crypto holdings are held by the company, not in a self-custody wallet you control, which means your coins are subject to Robinhood's security and bankruptcy protections rather than your own.
  • Limit orders, recurring buys, and after-hours trading are not available for most cryptocurrencies on Robinhood, though these are standard on most crypto exchanges.

Coins you can trade and coins you cannot

Robinhood offers Bitcoin, Ethereum, Dogecoin, Litecoin, Bitcoin Cash, Ethereum Classic, Ripple (XRP), Stellar Lumens, and about eight others. The exact list changes, and Robinhood adds coins occasionally. You can see the full current list in the app under the Crypto tab.

If you want to trade Solana, Cardano, Polkadot, or thousands of other coins, you cannot do it on Robinhood. Dedicated exchanges like Kraken, Coinbase Pro, or Kraken carry far more coins. If a specific coin is your reason for choosing a platform, check whether Robinhood trades it before opening an account.

How Robinhood holds your crypto and what that means

When you buy crypto on Robinhood, Robinhood holds it in custody. You do not receive a private key, and you cannot move the coins to your own wallet or to another exchange. This is different from self-custody, where you hold your own private keys and control the coins completely.

Custody through Robinhood means your coins are protected by Robinhood's security practices and insurance policies, not by your own security choices. If Robinhood is hacked, your coins may be covered by their insurance, but the terms depend on Robinhood's policies. If Robinhood goes bankrupt, your crypto holdings would be treated as customer assets, but the recovery process could be slow and uncertain.

If you want full control over your coins and the ability to move them between platforms, you need a self-custody wallet (like a hardware wallet or software wallet) and a crypto exchange that lets you withdraw to that wallet. Robinhood does not offer that option.

Trading features Robinhood does not have

Most crypto exchanges let you set a limit order — an instruction to buy or sell at a specific price automatically. Robinhood does not offer limit orders for crypto. You can only place market orders, which execute when ready at the current price. This means you cannot set a price target and walk away; you have to watch the market and execute manually.

Robinhood also does not offer recurring buys for crypto, which many exchanges do. On other platforms, you can set up an automatic weekly or monthly purchase. On Robinhood, you have to buy manually each time.

After-hours trading is not available for crypto on Robinhood, even though crypto markets run 24/7. You can only trade during Robinhood's market hours, which are roughly 9 a.m. to 5 p.m. Eastern time on weekdays. If you want to trade at 2 a.m. on a Sunday, you cannot do it through Robinhood.

Fees and costs

Robinhood charges zero trading fees for buying and selling crypto. There are no deposit fees, no withdrawal fees (because you cannot withdraw), and no monthly account fees. The only cost is the spread — the difference between the buy price and the sell price that Robinhood quotes you. This spread is how Robinhood makes money on crypto trades.

The spread on Robinhood is typically wider than on dedicated crypto exchanges during normal market hours. If you are buying $100 of Bitcoin, you might pay an extra $1 to $3 in spread on Robinhood compared to a platform like Kraken. For small trades, this difference is minor. For large trades, it adds up.

Security and insurance

Robinhood holds customer crypto in cold storage (offline vaults) and carries insurance through third-party providers. The exact coverage amount and terms are in Robinhood's crypto custody agreement, which you can read before opening an account. Robinhood also maintains cybersecurity practices and undergoes regular audits, though no platform is immune to hacks.

Your account itself is protected by Robinhood's two-factor authentication and account security features. If someone gains access to your Robinhood account, they can sell your crypto and transfer the money out, so securing your login credentials is important.

If you hold crypto in your own self-custody wallet, security depends entirely on you — how you store your private keys, whether you use a hardware wallet, and whether you fall for phishing scams. Self-custody is more find against platform hacks but riskier if you lose or forget your private keys.

When Robinhood makes sense for crypto

Robinhood works well if you want to buy a major coin like Bitcoin or Ethereum, hold it long-term, and do not need to move it elsewhere. It also works if you already use Robinhood for stocks and want to add crypto to the same account without switching platforms. The zero trading fees and straightforward interface appeal to beginners.

Robinhood does not work if you want to trade frequently using limit orders, access smaller coins, move crypto between wallets, or trade outside normal market hours. In those cases, a dedicated crypto exchange is necessary.

Frequently Asked Questions

Can I transfer crypto out of Robinhood to another wallet?

No. Robinhood does not allow withdrawals of cryptocurrency to external wallets or exchanges. Once you buy crypto on Robinhood, it stays there until you sell it back to cash. If you need to move coins elsewhere, you must use a different platform.

Does Robinhood charge fees for crypto trades?

Robinhood charges no trading fees, but you pay a spread — the difference between the buy and sell prices Robinhood quotes. The spread is typically wider on Robinhood than on dedicated crypto exchanges, so the true cost is higher than zero even though there is no stated fee.

Is my crypto insured if Robinhood gets hacked?

Robinhood carries insurance through third-party providers and stores crypto in cold storage. The exact coverage depends on Robinhood's insurance policy. You should read the crypto custody agreement on Robinhood's website to understand what is covered and what is not.

Can I use limit orders on Robinhood crypto?

No. Robinhood does not offer limit orders for cryptocurrency. You can only place market orders, which execute when ready at the current price. Most dedicated crypto exchanges do offer limit orders.

What cryptocurrencies does Robinhood trade?

Robinhood trades about 17 cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Litecoin. The full list is available in the Robinhood app under the Crypto tab. Robinhood adds coins occasionally, but the selection is much smaller than dedicated crypto exchanges.