How to buy crypto on Robinhood

To buy cryptocurrency on Robinhood, open the app or website, search for the coin you want, tap or click "Buy," enter the dollar amount or number of shares, review the order, and confirm. The transaction settles in your account immediately, though the actual transfer of the cryptocurrency to your wallet may take longer if you choose to move it off the platform.

Robinhood lets you buy fractional shares of most cryptocurrencies, meaning you don't need to own a whole coin — you can spend $10 or $100 on Bitcoin or Ethereum. The platform charges no commission on crypto trades, but you will see a spread (the difference between the buy and sell price) built into the price you see on screen.

Key Takeaways

  • You need a Robinhood account with identity verification completed before you can trade any cryptocurrency.
  • Robinhood shows you the spread (markup) on every trade, and this spread is how the platform makes money on crypto transactions.
  • Crypto you buy on Robinhood stays in your Robinhood account unless you transfer it to an external wallet, which Robinhood does not yet support for most coins.
  • Market orders execute at the current price immediately, while limit orders let you set a price you are willing to pay and wait for the market to reach it.
  • Robinhood reports your crypto trades to the IRS, so you are responsible for tracking gains and losses for tax purposes.

Setting up your account and verifying your identity

Before you can buy any cryptocurrency on Robinhood, you must create an account and complete identity verification. Download the Robinhood app or go to robinhood.com, enter your email, create a password, and provide your full name, date of birth, and Social Security number. Robinhood uses this information to verify your identity through a third-party service.

The verification process usually completes within minutes, though it can take up to a few business days in some cases. Once your identity is confirmed, you can fund your account by linking a bank account or depositing money via wire transfer. Robinhood does not charge account fees, but your bank may charge a fee for wire transfers.

Finding and selecting a cryptocurrency to buy

Open the Robinhood app or website and tap or click the search icon. Type the name or ticker symbol of the cryptocurrency you want — Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) are among the most commonly traded on the platform. Robinhood offers dozens of cryptocurrencies, though the full list changes over time as the platform adds and removes coins.

When you select a coin, you will see a price chart, the current bid and ask prices, and information about the coin's market cap and 24-hour price movement. The "Buy" button appears at the bottom of the screen on mobile or on the right side on desktop. Tap or click it to move to the order screen.

Placing a market order versus a limit order

A market order buys the cryptocurrency at the current market price right away. You enter the dollar amount you want to spend (or the number of coins), review the order, and confirm. The transaction completes within seconds at the price shown on screen, though that price includes Robinhood's spread.

A limit order lets you set a specific price you are willing to pay. If you want to buy Bitcoin only if it drops to $40,000, you enter that price and the number of coins. The order stays open until the market reaches your price or until you cancel it. Limit orders do not may provide a fill — if the price never reaches your target, your order will not execute.

Most new buyers use market orders because they are simpler and execute immediately. Limit orders are useful if you want to wait for a better price or automate a purchase at a specific level.

Understanding the spread and how Robinhood makes money

Robinhood does not charge a commission on crypto trades, but the platform makes money through the spread — the difference between what Robinhood pays for the coin and what it charges you. When you buy Bitcoin, the price you see on screen already includes this markup. When you sell, the price is marked down by the same amount.

The spread varies depending on market conditions and the specific cryptocurrency. Bitcoin and Ethereum typically have tighter spreads (smaller markups) because they trade in high volume. Smaller or less-traded coins may have wider spreads. You can see the exact spread by looking at the "Bid" and "Ask" prices on the coin's detail page — the ask price is what you pay to buy, and the bid price is what you receive to sell.

Reviewing and confirming your order

After you enter the amount you want to spend, Robinhood shows you an order review screen. This screen displays the cryptocurrency you are buying, the quantity, the total cost (including the spread), and the estimated settlement time. Read this carefully to make sure the dollar amount and coin are correct — once you confirm, the order executes immediately on a market order.

If something looks wrong, tap or click the back button to edit your order. If everything is correct, tap or click "Confirm" or "Buy Now." Your order will execute, and the cryptocurrency will appear in your Robinhood account within seconds. You will receive a confirmation notification and can view the transaction in your order history.

What happens after you buy: custody and transfers

When you buy cryptocurrency on Robinhood, the coins are held in your Robinhood account. You do not own a private key or control a separate wallet — Robinhood holds the cryptocurrency on your behalf. This means your coins are only as secure as Robinhood's security practices, though the platform is regulated and insured.

Robinhood does not currently support transferring most cryptocurrencies to an external wallet. This means you cannot move your Bitcoin or Ethereum to a hardware wallet or another exchange. If you want to hold your crypto outside of Robinhood, you will need to sell it on Robinhood and buy it on a different platform that supports withdrawals, such as Coinbase or Kraken.

Tracking your purchases for taxes

Every cryptocurrency trade you make on Robinhood is reported to the IRS. At the end of the year, Robinhood sends you a tax document (Form 1099-B or similar) that lists your transactions. You are responsible for calculating your capital gains or losses and reporting them on your tax return.

If you bought $500 worth of Ethereum and sold it for $800, you owe taxes on the $300 gain. If you bought at $800 and sold at $500, you have a $300 loss that may offset other gains. Keep records of every buy and sell price, the date, and the amount — Robinhood's tax documents help, but your own records are essential for accuracy.

Frequently Asked Questions

Can I buy crypto on Robinhood with a debit card?

No. Robinhood only accepts bank account transfers and wire transfers to fund your account. Link your checking or savings account through the app, and Robinhood will pull money from it to buy crypto. Wire transfers are faster but may incur a fee from your bank.

What is the minimum amount I can spend to buy crypto on Robinhood?

Robinhood does not publish a formal minimum, but you can buy fractional shares starting at $1 on most cryptocurrencies. Some coins may have slightly higher minimums, but the platform is designed to let small investors start with whatever amount they can afford.

How long does it take to buy crypto on Robinhood?

A market order executes within seconds once you confirm it. However, if you are funding your account for the first time, the bank transfer may take one to three business days. After that, money in your account is available to trade immediately.

Can I sell crypto on Robinhood the same way I buy it?

Yes. Search for the coin, tap "Sell," enter the amount, and confirm. Market orders sell at the current price immediately. Limit orders let you set a price and wait for the market to reach it. The proceeds land back in your Robinhood cash balance within seconds.

What happens if Robinhood goes out of business?

Robinhood is a regulated brokerage and holds customer assets in segregated accounts. If the company failed, your crypto would be returned to you or transferred to another broker. However, cryptocurrency itself is not insured by the FDIC the way bank deposits are, so the value of your holdings can fluctuate.