You cannot transfer crypto directly out of Robinhood to another wallet or exchange
Robinhood does not allow you to move cryptocurrency to an external wallet or transfer it to another brokerage. You can only buy, sell, and hold crypto within the Robinhood app itself. If you want to move your holdings elsewhere, you must sell them on Robinhood first, then use the cash to buy crypto on a different platform.
This is a significant limitation compared to other crypto platforms. Most exchanges and wallet services let you withdraw coins to your own wallet address or send them to another service. Robinhood's model keeps your crypto locked inside their system.
Key Takeaways
- Robinhood does not support withdrawals or transfers of cryptocurrency to external wallets or other exchanges.
- To move your crypto elsewhere, you must sell your holdings on Robinhood and withdraw the cash to your bank account.
- You can then use that cash to purchase the same crypto on a different platform that supports transfers.
- Selling and rebuying means you may owe capital gains taxes on any profit, and you will pay trading fees twice.
- If you plan to hold crypto long-term or move it between platforms, consider using a dedicated crypto exchange instead of Robinhood.
Why Robinhood does not allow crypto transfers
Robinhood treats cryptocurrency more like a stock than like actual digital currency. When you buy Bitcoin or Ethereum on Robinhood, you own the value but not the underlying coins themselves. Robinhood holds the actual crypto in their own wallets and custodial accounts.
This setup simplifies the user experience for beginners — you do not have to manage private keys or worry about sending coins to the wrong address. But it also means Robinhood maintains complete control over your holdings. They have chosen not to offer withdrawal or transfer features, which is their right as a private company.
The process for moving your crypto off Robinhood
If you decide to move your holdings to another platform, follow these steps in order:
- Open the Robinhood app and go to your crypto holdings.
- Select the cryptocurrency you want to move.
- Tap "Sell" and choose how much you want to sell (or sell all of it).
- Confirm the sale. The proceeds will appear in your Robinhood cash account within minutes.
- Go to the "Account" tab and select "Transfers" or "Withdraw Cash."
- Choose your linked bank account and enter the amount you want to withdraw.
- Wait for the cash to arrive in your bank (typically 1 to 3 business days).
- Log into your new crypto platform and deposit the cash.
- Buy the same cryptocurrency on the new platform.
The entire process takes at least several days because of bank transfer delays. You will also pay trading fees twice — once when you sell on Robinhood and again when you buy on the new platform.
Tax consequences of selling and rebuying
When you sell crypto on Robinhood, you trigger a taxable event. If your holdings have increased in value since you bought them, you will owe capital gains tax on the profit. Short-term gains (held less than one year) are taxed as ordinary income. Long-term gains (held one year or more) usually get a lower tax rate.
Robinhood provides a tax report showing your cost basis and sale proceeds, which you will need for your tax return. If you have held your crypto for a short time and it has grown significantly, the tax bill could be substantial. This is one reason to think carefully before moving your holdings — the tax cost plus trading fees can eat into your gains.
If your crypto has lost value, selling at a loss can offset other capital gains, which is a tax benefit. But if you are moving holdings that are currently profitable, factor the tax hit into your decision.
Alternative platforms that do allow transfers
If you want the ability to move crypto between platforms or to your own wallet, you will need to use a different service. Platforms like Kraken, Coinbase, Gemini, and Crypto.com all allow you to withdraw coins to external wallets or transfer them to other exchanges. These platforms charge withdrawal fees (usually small), but they give you full control over your holdings.
Some of these platforms also offer features Robinhood does not, such as staking (earning interest on your holdings), advanced trading tools, or access to smaller cryptocurrencies. The trade-off is that they are more complex and require you to understand wallet addresses and private keys.
If you are new to crypto and want simplicity, Robinhood is still an option for buying and holding. But if you think you might want to move your crypto later, or if you want to use advanced features, starting on a platform with withdrawal capability will save you time and money.
Timing considerations before you sell
Before you sell your crypto on Robinhood to move it elsewhere, consider the market. Crypto prices move constantly, and the time it takes to sell, withdraw cash, and rebuy on another platform means you could see price swings. You cannot time the market perfectly, but you can be aware that you will be out of the market for several days.
Some people choose to move only part of their holdings at a time to reduce this risk. For example, you might sell and transfer 25% of your Bitcoin, wait a few days, then move another 25%. This spreads out the timing risk, though it also means paying fees multiple times.
Frequently Asked Questions
Can I transfer my Robinhood crypto to a hardware wallet?
No. Robinhood does not support withdrawals to any external wallet, whether it is a hardware wallet like Ledger or a software wallet like MetaMask. You must sell your crypto on Robinhood and rebuy it on a platform that supports withdrawals.
What if I want to move my crypto to Coinbase or another exchange?
You cannot transfer directly. Sell your holdings on Robinhood, withdraw the cash to your bank, deposit it on the new exchange, and buy the same crypto there. The process takes several days and costs you in trading fees and potentially taxes.
Does Robinhood charge a fee to sell crypto?
Robinhood does not charge explicit trading fees for buying or selling crypto, but they make money through the spread (the difference between buy and sell prices). When you sell, you will get slightly less than the current market price.
Will I owe taxes if I move my crypto to another platform?
Yes, if you have a profit. Selling crypto is a taxable event, even if you are moving it to another platform. You will owe capital gains tax on any increase in value since you bought it. Robinhood will send you a tax report showing your transactions.
Can I transfer crypto between my own Robinhood accounts?
No. Robinhood does not allow transfers between accounts, even if both accounts belong to you. Each account is separate, and you can only move money by withdrawing cash.