How to buy cryptocurrency on Robinhood
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| How to buy cryptocurrency on Robinhood |
First, you'll need a Robinhood account with crypto trading enabled. If you don't have one yet, download the app and complete the account setup, including identity verification. Crypto trading may not be immediately available - it sometimes takes a few days after account approval.
Adding Funds
Before buying crypto, you need money in your account. You can deposit funds from your bank account through the app. Robinhood offers instant deposits up to certain limits, though these funds may have temporary restrictions on crypto purchases.Buying Cryptocurrency
Once funded, navigate to the crypto section in the app. You can search for specific cryptocurrencies like Bitcoin, Ethereum, or others available on the platform. Select the cryptocurrency you want, tap "Trade" then "Buy," and enter either the dollar amount you want to spend or the amount of crypto you want to purchase.Order Types
Robinhood offers market orders (buy immediately at current price) and limit orders (buy only at a specific price or better). Market orders execute quickly but prices can fluctuate. Limit orders give you price control but may not execute if the market doesn't reach your target price.Important Considerations
Robinhood doesn't currently allow you to transfer crypto to external wallets or other platforms - you can only buy, hold, and sell within Robinhood. They also don't offer all cryptocurrencies, just a selection of major ones. Be aware of the spread (difference between buy and sell prices) which is how Robinhood makes money on crypto trades.The process is designed to be straightforward, similar to buying stocks on their platform. Start small while you're learning, and remember that cryptocurrency prices can be highly volatile.