You cannot send crypto directly from Robinhood to another wallet or person

Robinhood does not allow you to transfer cryptocurrency out of your account to an external wallet, exchange, or another person's address. You can buy and sell crypto within Robinhood, and you can withdraw cash to your linked bank account, but the cryptocurrency itself stays locked inside Robinhood's system.

This is a deliberate design choice by Robinhood. The company holds your crypto in custody, meaning they control the private keys and the blockchain addresses. You own the value, but you do not own the ability to move it elsewhere. If you need to send crypto to someone or move it to a different platform, you will have to sell it on Robinhood first, withdraw the cash, and then buy crypto again on a platform that does allow transfers.

Some investors find this frustrating because it locks them into Robinhood's fees and limits their options. Others accept it as a trade-off for the simplicity of buying crypto through a familiar brokerage app.

Key Takeaways

  • Robinhood keeps all cryptocurrency in its own custody, so you cannot transfer coins or tokens to external wallets or other exchanges.
  • You can buy, sell, and hold crypto on Robinhood, and you can withdraw cash proceeds to your bank account, but not the crypto itself.
  • To move crypto off Robinhood, you must sell it, withdraw the cash, and then purchase crypto again on a platform that supports transfers.
  • Platforms like Kraken, Coinbase, and Gemini do allow you to send crypto to external addresses, if that feature matters to you.

What you can and cannot do with Robinhood crypto

Robinhood lets you buy and sell a limited list of cryptocurrencies—Bitcoin, Ethereum, Dogecoin, and a handful of others—directly in the app. You can hold these positions, watch their price changes, and sell them whenever you want. The cash from a sale goes into your Robinhood account and can be withdrawn to your linked bank account within a few business days.

What you cannot do is initiate a transfer. There is no "send" or "withdraw crypto" button in the app. You cannot enter a wallet address and move your coins anywhere. You cannot use Robinhood crypto as collateral for loans on other platforms. You cannot send it to a hardware wallet for cold storage. The crypto exists only as a balance in your Robinhood account.

This restriction applies whether you want to send crypto to yourself on another exchange, to a friend, to a business, or to a hardware wallet you own. The answer is the same: Robinhood does not support outbound transfers.

Why Robinhood holds crypto in custody

Robinhood's custody model simplifies the user experience. You do not have to manage private keys, worry about losing a seed phrase, or understand blockchain addresses. You log in with your username and password, just like a traditional brokerage account. For people new to crypto, this feels familiar and safe.

The trade-off is control. When you hold crypto on an exchange or in a custodial account, that company controls the private keys. If Robinhood were hacked, your crypto could be at risk—though Robinhood does carry insurance on customer assets held in custody. If Robinhood goes out of business or freezes accounts, you cannot simply move your crypto elsewhere; you would have to wait for the company to process a sale or liquidation.

Robinhood also benefits from this model because it keeps users on the platform. Once your crypto is there, the friction of selling, withdrawing cash, and buying elsewhere on a new platform discourages you from leaving.

How to move crypto off Robinhood if you need to

If you want your crypto on a different platform or in a self-hosted wallet, the process is straightforward but involves a taxable event. Sell your crypto on Robinhood at the current market price. This triggers a capital gains or loss for tax purposes, and Robinhood will report it to the IRS on Form 8949.

Once the sale settles, withdraw the cash to your bank account. This usually takes two to three business days. Then log into the platform where you want to hold crypto—Kraken, Coinbase, Gemini, or another exchange that supports transfers—and buy the same amount of crypto at the current price.

The downside is that you pay two sets of trading fees (one to sell on Robinhood, one to buy on the new platform) and you are exposed to price movement between the sale and the purchase. If the price of Bitcoin rises 5% while your cash is in transit, you will buy back less crypto than you sold. If it falls, you will buy back more.

Platforms that do allow crypto transfers

If the ability to send crypto to external wallets or other people is important to you, Robinhood is not the right choice. Platforms like Kraken, Coinbase, Gemini, and Kucoin all allow you to withdraw crypto to an external wallet address. Some also allow you to send crypto directly to another person's address on the same platform.

These platforms typically charge a withdrawal fee—usually a small amount of the crypto itself—to cover the cost of the blockchain transaction. But you own the ability to move your crypto whenever you want. This is especially important if you plan to use crypto for actual transactions, store it long-term in a hardware wallet, or move it between multiple platforms.

The trade-off is that these platforms often have steeper learning curves and less polished mobile apps than Robinhood. They also require you to manage security more carefully, since you have more control over your funds.

Tax implications of selling and rebuying

When you sell crypto on Robinhood to move it elsewhere, you create a taxable event. If you bought Bitcoin at $30,000 and sell it at $45,000, you owe capital gains tax on the $15,000 profit. The holding period (less than one year or more than one year) determines whether it is taxed as short-term or long-term capital gains.

Robinhood sends you a Form 8949 each year listing all your sales. You report this on your tax return. The IRS does not care that you immediately bought the same crypto back on another platform; as far as tax law is concerned, you sold it and bought a new position.

If you have a loss—you bought at $45,000 and sold at $30,000—you can use that loss to offset other capital gains or up to $3,000 of ordinary income in the same year. Any excess loss carries forward to future years.

Frequently Asked Questions

Can I send crypto from Robinhood to a friend or family member?

No. Robinhood does not support sending crypto to other people, whether they use Robinhood or not. You would have to sell the crypto, withdraw the cash to your bank account, and then send money to your friend through a bank transfer or payment app.

What if I want to move my crypto to a hardware wallet?

You cannot transfer directly from Robinhood to a hardware wallet like Ledger or Trezor. You must sell on Robinhood, withdraw cash, buy crypto on a platform that supports transfers (like Kraken or Coinbase), and then send it to your hardware wallet from there.

Does Robinhood plan to add crypto transfer features?

Robinhood has not announced plans to allow outbound crypto transfers. The company has stated that custody is part of its core product design. If this feature becomes important to you, you would need to switch to a different platform.

Are there fees to sell crypto on Robinhood?

Robinhood does not charge a commission to buy or sell crypto. However, the price you see in the app includes a small spread—the difference between what Robinhood pays to acquire the crypto and what it charges you. This spread is how Robinhood makes money on crypto trading.

How long does it take to withdraw cash after selling crypto?

Once you sell crypto on Robinhood, the cash appears in your account immediately. Withdrawing that cash to your bank account typically takes two to three business days, depending on your bank.