How to Buy Cryptocurrency on Robinhood
The basic steps to buy crypto on Robinhood
To buy cryptocurrency on Robinhood, you open the app or website, search for the coin you want, tap or click "Buy," enter the dollar amount or number of shares, and confirm the order. The transaction settles immediately — you own the crypto right away, not after a waiting period. Robinhood charges no commission on crypto trades, though the price you pay includes a built-in spread (the difference between what Robinhood paid for the coin and what it charges you).
You need a funded Robinhood account to start. If you don't have one yet, you'll create an account, verify your identity, link a bank account, and deposit money before you can buy. The whole setup takes 10 to 15 minutes, though your bank transfer may take one to three business days to clear.
Robinhood lets you buy fractional shares of crypto, meaning you don't have to buy a whole coin. You can spend $5 on Bitcoin or $1 on Ethereum if you want. This makes it possible to start with a small amount.
Key Takeaways
- You search for a coin by name, tap Buy, enter a dollar amount, and confirm — the order settles instantly with no commission fee.
- Robinhood includes a spread in the price you pay, so the actual cost is higher than the market price shown elsewhere.
- You can buy fractional shares, so you don't need enough money for a whole coin.
- Your bank deposit must clear before you can trade, which usually takes one to three business days.
- Robinhood holds your crypto in its own custody, not in a wallet you control directly.
What crypto Robinhood offers and what it doesn't
Robinhood offers Bitcoin, Ethereum, Dogecoin, and roughly 15 other cryptocurrencies. The exact list changes over time as Robinhood adds or removes coins. You can see the full current list by opening the app and searching the Crypto tab.
Robinhood does not offer every cryptocurrency. If you want to buy a smaller or newer coin, you may need to use a different platform like Coinbase or Kraken. Robinhood also does not let you transfer crypto in or out — you can only buy and sell within the app. If you want to move your coins to a hardware wallet or send them to someone else, you cannot do that on Robinhood.
How the spread affects what you actually pay
When you buy crypto on Robinhood, the price shown in the app is not the true market price. Robinhood adds a spread — a markup that goes to Robinhood, not to you. The spread varies by coin and market conditions but typically ranges from 1% to 2% on major coins like Bitcoin and Ethereum.
This means if Bitcoin is trading at $40,000 on other exchanges, you might pay $40,400 on Robinhood. You don't see this as a separate fee — it's built into the price. When you sell, the same spread works against you: you'll receive less than the market price. Over time, spreads can add up, especially if you trade frequently.
If you plan to hold crypto for years and rarely trade, the spread matters less. If you buy and sell often, the spread cost becomes significant and may make other platforms with lower fees a better choice.
Setting up your account and funding it
Start by downloading the Robinhood app or visiting robinhood.com. Tap "Sign Up" and enter your email, create a password, and choose a username. Robinhood will ask for your legal name, date of birth, address, and Social Security number to verify your identity — this is required by law for all brokers.
Next, link a bank account. Robinhood accepts checking and savings accounts from most U.S. banks. You'll provide your routing number and account number, which you can find on a check or in your bank's app. Robinhood will make two small test deposits to your account (usually under $1 each) to confirm you own the account. You'll verify these amounts in the Robinhood app.
Once your bank account is linked, you can deposit money. Transfers from your bank to Robinhood typically clear in one to three business days. Until the transfer clears, you cannot trade. Some accounts may allow you to trade immediately with unsettled funds, but the crypto purchase will be held until the deposit clears.
Placing your first crypto order
After your deposit clears and you have cash in your Robinhood account, open the app and tap the Crypto tab at the bottom. Search for the cryptocurrency you want — type "Bitcoin," "Ethereum," or the coin's ticker symbol. Tap the coin name to open its detail page.
Tap the "Buy" button. You'll see two options: enter a dollar amount (for example, $100) or enter a number of shares (for example, 0.005 Bitcoin). Most people find it easier to enter a dollar amount. Type the amount and review the order preview, which shows the price per coin, the total cost, and any applicable fees or spreads.
Tap "Review Order" and then "Confirm" to complete the purchase. Your crypto appears in your account immediately. You can see your holdings in the Crypto tab, which shows your current balance, the current price, and your gain or loss.
Understanding Robinhood's custody of your crypto
When you buy crypto on Robinhood, Robinhood holds it for you. You don't receive a private key or control a wallet directly — Robinhood manages the coins on your behalf. This is called custodial storage, and it's simpler than managing your own wallet but means you depend on Robinhood's security and policies.
If Robinhood goes out of business, your crypto is protected under Robinhood's insurance policy, though the details and limits vary. You should review Robinhood's current insurance coverage on their website if this is a concern.
If you want full control of your crypto — to move it to a hardware wallet, send it to someone else, or use it on other platforms — Robinhood is not the right choice. You would need to use an exchange that lets you withdraw to your own wallet, such as Coinbase or Kraken.
Selling crypto and withdrawing cash
To sell crypto on Robinhood, open the Crypto tab, tap the coin you own, and tap "Sell." Enter the dollar amount or number of shares you want to sell. Review the order and tap "Confirm." The sale settles immediately, and the cash appears in your Robinhood account.
To move cash out of Robinhood and back to your bank account, tap the Account icon, select "Transfers," and choose "Transfer to Your Bank." Enter the amount and confirm. The transfer usually takes one to three business days. Robinhood does not charge a fee for transfers out.
Frequently Asked Questions
Can I buy crypto on Robinhood if I'm under 18?
No. Robinhood requires you to be at least 18 years old to open an account. Some parents open custodial accounts for younger children, but Robinhood does not offer this option for crypto — only for stocks and ETFs.
What happens if I buy crypto and the price drops immediately?
You own the crypto at the price you paid. If the price drops, your account shows a loss, but you can hold it and wait for the price to recover, or sell it at any time. Robinhood does not force you to sell or charge you for holding.
Does Robinhood report my crypto trades to the IRS?
Yes. Robinhood reports your trades to the IRS on Form 8949 if you have taxable gains or losses. You are responsible for reporting all crypto transactions on your tax return, regardless of whether Robinhood reports them. Keep records of all your buy and sell prices for tax time.
Can I set up automatic purchases of crypto on Robinhood?
Robinhood does not offer automatic recurring purchases for crypto the way it does for stocks. You must manually place each buy order. Some other platforms like Coinbase and Kraken offer automatic purchases if you prefer that approach.
What should I do if I forget my Robinhood password?
Go to robinhood.com and click "Forgot password?" on the login page. Enter your email address and Robinhood will send you a link to reset it. Click the link in your email and create a new password. If you don't receive the email, check your spam folder or contact Robinhood support through the app.