Do You Own Crypto on Robinhood?
Buying crypto in Robinhood is now easier than ever before, but are you the true owner of those assets?
This is a valid question that hundreds of Robinhood users have had through the years.
For many, Robinhood seems like a simple and convenient avenue for holding, trading, and buying cryptocurrency.
But the whole point of cryptocurrencies is to provide people real ownership of their funds and coins.
If you can’t have full access to your money on the platform, then what’s the point?
It makes sense to check this before deciding to invest your precious cash in this app, right? In this article, we are going to thoroughly talk about the following topics:
- Do you own crypto on Robinhood?;
- Understanding Robinhood cryptocurrency options for old and new investors;
- Does Robinhood work as a classic crypto exchange?
Understanding Robinhood Crypto
Robinhood is well known for being a commission-free trading platform where people can sell and purchase stocks in the stock market with Robinhood account services.
Mutual funds, security trade, and other options are available as well.
Having the ability to buy stocks is not something exclusive from this platform - other companies also earn profits depending on stocks transaction volume and other factors.
But, when it comes to crypto assets, Robinhood has been widely known for shorter-term trading strategies based on their value.
But, is this still like that?
Pro Tip: When you download Robinhood mobile apps to buy crypto or trade actual coins, you must complete an application process.
They ask you for different personal information. For example, you need to provide your SSN to Robinhood - it’s the only option you have if you want to purchase crypto and stocks.
1. Crypto Trades on Robinhood
Being a stock-first investment platform, there aren’t many tradeable cryptocurrencies. Bitcoin, Bitcoin Cash, Ether, Litecoin and Dogecoin are just some of the options that crypto users can access to.
2. Crypto Holdings on Robinhood
In the beginning, you could only sell crypto for fiat currency inside the platform.
The more funds you had, the more money you were able to exchange.
Investing in crypto, such as Bitcoin for example, for holding purposes is one of the most common activities in the crypto world.
Moreover, thanks to the security measures of Robinhood, managing your coins is easier than ever.
3. Crypto Wallets on Robinhood
This is where things get interesting.
A while ago, when you decided to buy crypto such as Bitcoin coins in Robinhood, you could only have those cryptos inside your Robinhood app account.
If you wanted to sell them, the only alternative left was to get fiat funds in the app.
Now, Robinhood Cryptos enable traders to open crypto wallets for the different coins available.
What’s more, industry-leading security measures, FDIC insurance for coins, and cold storage for different assets create a new window of opportunities for Robinhood customers.
Read Also: You Can’t Buy Crypto on Robinhood? There might be an issue related to your buying power.
Increase your knowledge base about this topic by checking out our related article!
Do You Own Crypto on Robinhood?
Now, with the new Robinhood digital wallet, you can be the true owner of your crypto.
Robinhood announced that Crypto Wallets were coming to Robinhood so users could take their holdings out of the app if they wanted to.
There’s a common saying in the crypto community: not your keys, not your coins.
Now, if you have Bitcoin in your wallet and want to move it to an external exchange, you are free to do so.
Still, you are holding your assets in a custodial environment.
It’s recommended to move them out of Robinhood so you can enjoy full control of your private keys.
Is the New Robinhood’s Wallet Safe?
Robinhood is considered one of the safest platforms for investment purposes.
Nonetheless, since your account must comply with regulatory laws, some users just don’t like the centralized environment offered when it comes to crypto.
Yes, Robinhood is safe, but there are plenty of exchanges in the sea - don’t limit yourself.
Pro Tip: if you decide to constantly trade on Robinhood, we recommend you learn how to enable Robinhood Alerts.
They are a really useful feature that will help you make better financial decisions.
Investors Want to Have Greater Control of Their Assets
Think out of the box: now that the digital crypto wallet option is available in Robinhood, you can just move your funds to other crypto exchanges.
For instance, Binance has proven to be one of the most reliable ones out there.
Likewise, you could also move your holdings to Trust Wallet, which is non-custodial, giving you full responsibility for your assets.
At the end of the day, you are on your right to do whatever you want with your crypto.
Now, Robinhood lets you have control of your decisions.
That’s all for today! If you want to learn more about Robinhood, check our related blog post here at GrowFollowing.
Do You Own Crypto on Robinhood FAQ
Why is Robinhood Asking for My Bank Account Login Details?
They need your banking information in order to properly verify your linked bank accounts.
Learn more about this by checking our Robinhood Bank Login Safety article.
Is Trading and Investing in Cryptocurrency Safe?
There’s always a risk when it comes to trading and Robinhood is quite aware of that.
Always perform your own research before investing your money in any exchange.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.