Yes, you can buy crypto on Robinhood, but only certain coins

Robinhood lets you buy and sell cryptocurrency directly through the app, but the selection is limited compared to dedicated crypto exchanges. As of now, Robinhood offers Bitcoin, Ethereum, Dogecoin, and a rotating list of other coins — the exact list changes, so check the app to see what's currently available in your state.

You don't need a separate crypto wallet or exchange account. You buy crypto the same way you buy stocks on Robinhood: with cash in your Robinhood account. The coins sit in Robinhood's custody, not in a wallet you control. This matters if you plan to transfer crypto elsewhere or use it for transactions.

Robinhood's crypto trading is available in most U.S. states, but not all. New York, for example, has stricter rules and Robinhood does not offer crypto there. Check whether your state is supported before you fund your account.

Key Takeaways

  • Robinhood offers a limited selection of cryptocurrencies, typically Bitcoin, Ethereum, and Dogecoin, with availability varying by state.
  • You buy and sell crypto through your Robinhood account using cash you've already deposited, with no separate wallet needed.
  • Robinhood holds your crypto in its custody, so you cannot transfer coins to an external wallet or use them outside the app.
  • Robinhood charges no commission on crypto trades, but the spread (the difference between buy and sell price) is how the company makes money.
  • Crypto prices move constantly, and Robinhood's prices may lag slightly behind real-time market prices during busy trading periods.

How to buy crypto on Robinhood step by step

Open the Robinhood app and tap the search icon at the bottom. Type the name of the coin you want — Bitcoin, Ethereum, or whichever is available. Tap the coin name when it appears in the results.

On the coin's page, tap the "Buy" button. Enter the dollar amount you want to spend or the number of coins you want to buy. Robinhood will show you the current price and the total cost. Review the details and tap "Buy [Coin Name]" to confirm.

The transaction completes instantly if you have cash in your account. If you're using Robinhood Gold (the paid subscription), you can also buy on margin, which means borrowing money from Robinhood to buy more crypto than you have cash for — this carries risk and interest charges.

What you pay: spreads, not commissions

Robinhood charges zero commission on crypto trades, which sounds good until you understand how they make money. Instead, they profit from the spread — the gap between the price they pay for crypto and the price they charge you.

When you buy Bitcoin, the price Robinhood shows you is slightly higher than the wholesale price they paid. When you sell, the price they show you is slightly lower than what they'll receive. That difference is Robinhood's cut. The spread varies depending on market conditions and which coin you're trading; Bitcoin and Ethereum typically have tighter spreads than smaller coins.

You won't see a separate line item for this cost. It's built into the price you see on screen. This is different from a traditional brokerage, which would show you a commission fee separately.

Custody and whether you actually own the crypto

When you buy crypto on Robinhood, you own it — but Robinhood holds it for you. You cannot transfer the coins to an external wallet, trade them on another exchange, or use them to pay for things outside Robinhood. You can only buy, sell, or hold them within the app.

This setup is simpler for beginners because you don't have to manage a private key or worry about losing access to a wallet. But it also means Robinhood controls the coins, and if Robinhood goes out of business or is hacked, your crypto could be at risk. Robinhood does carry insurance, but it's worth understanding the trade-off.

If you want to transfer crypto to a wallet you control or use it outside Robinhood, you'll need to move to a different platform like Coinbase or Kraken, which do allow withdrawals to external wallets.

Price delays and market hours

Robinhood's crypto prices update 24/7 since crypto markets never close, unlike stock markets. However, during extremely busy trading periods, Robinhood's prices may lag a few seconds behind the actual market price. If you're day trading or trying to catch a specific price point, this delay matters.

You can place orders anytime, but if you place an order when the market is moving fast, the price you see on screen may not be the price you actually pay. Robinhood will show you the final price before you confirm, so you can cancel if it's not what you expected.

Taxes on crypto you buy through Robinhood

Every time you sell crypto for a profit, that's a taxable event. The IRS treats it as a capital gain, and you owe tax on the difference between what you paid and what you sold it for. If you held the crypto for less than a year, it's taxed as short-term capital gain (at your ordinary income tax rate). If you held it for more than a year, it's taxed as long-term capital gain (usually lower rates).

Robinhood provides a tax document called Form 8949 at the end of the year if you traded crypto. You'll need this to file your taxes. Keep records of every buy and sell, including the date and price, because the IRS requires it. Many people use tax software or hire an accountant to sort this out, especially if they trade frequently.

Robinhood Gold and margin trading for crypto

Robinhood Gold is a paid subscription ($5 per month) that gives you access to margin trading. With margin, you can borrow money from Robinhood to buy more crypto than you have cash for. If the price goes up, you keep the profit. If it goes down, you lose more than you invested because you still owe Robinhood the borrowed amount plus interest.

Margin trading is risky and meant for experienced traders. Most beginners should stick to buying crypto with cash you already have. If you do use margin, understand that Robinhood can force you to sell your positions if your account value drops too far — this is called a margin call, and it can lock in losses at the worst possible time.

Frequently Asked Questions

Can I transfer crypto from Robinhood to another wallet or exchange?

No. Robinhood does not allow withdrawals of crypto to external wallets or other exchanges. Your coins stay in Robinhood's custody. If you want to move crypto elsewhere, you'll need to sell it on Robinhood, withdraw the cash, and then buy it again on a different platform.

What happens to my crypto if Robinhood shuts down?

Robinhood holds crypto insurance, but the coverage has limits and may not cover all scenarios. If you're concerned about this risk, consider using a platform that lets you withdraw to your own wallet, where you control the keys and don't depend on any company staying in business.

Does Robinhood charge fees to hold crypto?

No. You don't pay a fee just for holding crypto in your Robinhood account. You only pay the spread when you buy or sell. Robinhood Gold ($5/month) is optional and only needed if you want margin trading.

Can I buy fractional shares of crypto on Robinhood?

Yes. You can buy any dollar amount of crypto, even if it's less than one full coin. For example, you can spend $50 on Bitcoin even though one Bitcoin costs much more. This makes it easier to start with a small amount.

Is buying crypto on Robinhood safe?

Robinhood is a regulated brokerage and uses industry-standard security. Your account is protected by username and password, and you can enable two-factor authentication. The main risk is that Robinhood holds your crypto, not you, so you're trusting the company to keep it secure and solvent.