How To Buy Cryptocurrency On Robinhood? – Steps And Tips
With the current stability shown by the digital currency world in the midst of a pandemic, mor and more people look into investing in cryptocurrency. In this context, you should know that not all buying platforms are built the same. There are those who are designed, especially to cater newbies who want to enjoy no commission charges. Learn how buy cryptocurrency on Robinhood with this article.
What is Robinhood
Robinhood Markets is an American firm offering financial services. Learning how to buy cryptocurrency on Robinhood is appealing to customers because they are one of the few platforms that offers zero charge for commissions. Their featured services target investors who are new to the trade. Their trading costs are very low and cryptocurrency trading is allowed in small quantities. Other platforms require certain minimums for an investor to make a trade. Customers are driven by its efficiency at getting their cash into the market which allows them to have an instant access to the deposited cash after closing transactions. Your buying power also increases right away as soon as you have successfully made a deposit into your account.
The firm gets income from payments for order flow. This means that they receive compensation and benefits when they direct orders to various parties to execute a trade. While you might think that this is just a small amount, a company can make considerable amounts when they can direct billions of dollars in trade to market makers.
Robinhood are accessible through different platforms – web, android, and iOS.
Steps in Buying Crypto on Different Robinhood Platforms
How do you buy bitcoin on Robinhood? In this part of the article, we will give you the steps to utilize each platform they offer.
- Create an account.
- Once successful, find the cryptocurrency you want to buy and click it.
- Configure the Order Types in the upper right side of your screen.
- Fill-up the price and/or amount.
- Click review and confirm your order.
Android and iOS
- Download the app and create an account.
- Click Trade.
- Click Buy.
- Configure the Order Types found in the upper right corner of your screen.
- Finalize your trade and confirm your order.
- Swipe to submit your order.
The process in selling is the same except that you will have to choose Sell instead of Buy in step #3.
Not everyone can do how to buy cryptocurrency on Robinhood. Upon creating an account, the following eligibility must be verified:
- You must be at least 18 years old.
- You must be a U.S. citizen or must possess a U.S. permanent residence or valid U.S. Visa.
- You must have a valid Social Security Number.
- You must have a legal residential address in any of the 50 U.S. states or Puerto Rico.
Furthermore, you must know that buying cryptocurrency in Robinhood is available in 46 states with restrictions in Nevada, Hawaii, New Hampshire, and West Virginia.
Cryptocurrencies Available in Robinhood
Although not all cryptocurrencies are accessible in Robinhood, their list are competitive. Starting from the world’s reliable cryptocurrency, Bitcoin. Here are the other coins that you can buy and sell 24/7 without having to worry with commission charges:
- Bitcoin Cash
- Bitcoin SV
- Ethereum Classic
Expanding the list of cryptocurrencies available for trade is continuously in the works. But being able to buy Bitcoin branches and Ethereum is already an enough reason to learn how to buy cryptocurrency on Robinhood.
Robinhood also lets you see real-time market data of the following cryptocurrencies:
- Bitcoin Gold
Theses cryptocurrencies is likely to be made available for trade in Robinhood in the near future.
BONUS: Tips in Buying Cryptocurrency
As a bonus tip, here are 6 things that you should have in mind if you are going to buy cryptocurrency for the first time:
1. Organize your wallet
It is basic. Your money must be kept somewhere. And its security must be one of your priorities. There are endless methods to store your digital investments. For starters, know the difference between hot and cold wallets. Hot wallets are where you keep your assets that you would like to move often. Cold wallets are where you store the coins that you plan to be more immobile. They differ in security. Hot wallets are housed on the internet unlike the cold wallets are stored in a hardware.
2. Choose a reliable purchase method
As much as you want to buy reliable cryptocurrencies, you get them through equally reliable purchasing methods. All platforms probably say that they have a strong security system. But those who want to do bad, will always find how. Search for a purchasing method that has already a history of reliability and accountability. With the reputation of its company, learning how to buy cryptocurrency on Robinhood is a good option.
3. Do not buy a cryptocurrency upon take off
It is normal to be excited about a newly launched cryptocurrency with low value and good current market projections. But remember that after a sharp rise, currencies will either go through a correctio or a strong fall. You might want to be on the safer side and wait for a certain stability of a new coin before hoarding it.
4. Take a relax period after a buying spree
Adrenalins are double agents for each investor. You either get anxiety or excitement about your asset values often. Our advice is learning how to be calm after making any purchase. Do not let emotions rule over. Bitcoin itself experience various falls, hacking, and bans. However, it remains to be the strongest digital coin in the market up to today.
Bitcoin is still the gold in the field. And as projected by finance experts, it will stay as that for a couple of years. So, make sure to have a constant supply of bitcoins and do not let your account be out of this precious coin.
Hands-off your house, car and basic needs!
Yes, we know how promising cryptocurrencies are. But no matter how true this statement is, predictions are never 100% accurate. Hold on to your valuable possessions. Do not think for a second to sell your house just to gain more digital investments. Risk comes with investing and trading, but not all scenarios are worth the risk. Learn more about buying cryptocurrencies here!
By now, not only you do know how buy cryptocurrency in Robinhood, but you have also learned a lot from the cryptocurrency field. If you are a beginner, the above information might just have helped you gain the confidence to make your first purchase. Go and buy! The best time to invest is now.
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