Robinhood opened its services to cryptocurrency trading in 2019. It was an instant hit, growing a profile of one million waitlist users in only five days.
There’s no doubt that buying crypto is exciting. But let’s face it—selling your crypto for a profit is even more fun.
So, we’ll teach you how to sell crypto on Robinhood. It’s an easy process, so you’ll be able to get your sell order set up in no time.
- Step-by-Step Guide for Selling Crypto on Robinhood
- Selling Crypto on Robinhood’s Website
- Selling Crypto on Robinhood’s Mobile App
- Understanding Robinhood’s Fees
- Processing Times when Selling Crypto
- The Low-down on Robinhood Bank Transfers
- Robinhood in the News
- Are You Ready to Sell Your Crypto?
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Step-by-Step Guide for Selling Crypto on Robinhood
Robinhood is one of the easiest platforms for selling cryptocurrency. They offer a user-friendly platform free of intimidating charts and trading lingo, making it an excellent choice for people new to the crypto world.
When looking at how to sell crypto on Robinhood, you have two options: Selling on their website or via their mobile app (iOS and Android).
Let’s dive into the simple step-by-step process for each.
Selling Crypto on Robinhood’s Website
To sell your cryptocurrency on Robinhood, follow these easy steps:
- Log in to your account and click on “Detail” by the cryptocurrency you want to sell.
- Press the “Sell” button. You’ll find this on the rightmost side of the order window.
- Type in the USD amount that you want to sell. You can sell a portion or all of any given crypto coin.
- Review the order, then press the confirm button.
Selling Crypto on Robinhood’s Mobile App
Selling cryptocurrency on Robinhood’s mobile app is the same for iOS and Android users. Below are the steps you’ll need to follow:
- Visit the “Detail” page of the crypto coin you’d like to sell.
- Click “Trade” followed by “Sell.”
- Click on order types. You’ll find this on the upper right side of the screen. You can either choose market order (will sell immediately for higher fees) or limit order (will sell at a designated price point you set, usually with fewer fees).
- Enter how much of the coin you’d like to sell.
- Confirm your order, then swipe up on your screen to send it through to Robinhood.
Understanding Robinhood’s Fees
Aside from its user-friendly interface, one of the other draws of Robinhood is its no-fee policy.
But you might be wondering—how do they make money?
Robinhood makes money on your transactions by selling your crypto at a slightly higher market price than average. They then keep the difference in cost.
Since you will also have bought your crypto at that slightly higher price, the price difference shouldn’t affect you.
In contrast, most cryptocurrency exchanges charge maker or taker commission fees for every buy and sell transaction you perform.
Robinhood is changing the crypto fee landscape, though. Many exchanges have already lowered their fees to stay competitive.
Needless to say, you won’t have to worry about getting stuck with hidden fees after you sell your cryptocurrency on Robinhood.
Processing Times when Selling Crypto
Unlike many cryptocurrency exchanges but like most traditional stock platforms, the money from your crypto sale will undergo a settlement period on Robinhood.
You won’t have access to trade with or withdraw the fund you made from the sale during this time.
The good news is that Robinhood clearly states their settlement period: Two trading days after the date that you sold your crypto. They call this the “regular-way” settlement.
So, you’ll see the cash in your Robinhood account three days after you sold your crypto.
You can then use that cash to purchase other cryptocurrency or stock assets on Robinhood. Alternatively, you can transfer the money to your bank account.
The Low-down on Robinhood Bank Transfers
Robinhood offers a generous five withdrawals per business day from their platform to your bank account, as long as the total amount doesn’t exceed $50,000.
Since you’re working with a bank, you won’t see the transferred money in your account the same day you made it. Instead, you can expect your ACH transfer to arrive in your bank account in three to five business days.
If you’re running the tally, that means you’ll have access to your money a minimum of five business days after you sell your crypto, including the settlement period.
Considering weekends and the possible two-day extra bank transfer time, it’s best to set your expectations for receiving your money more than a week after placing your sell order.
Robinhood in the News
Although Robinhood’s crypto platform is undoubtedly among the easiest to use, it’s gotten a lot of backlash for how they handle selling cryptocurrency.
Namely, you must sell your cryptocurrency; you don’t have the option to transfer your crypto to another wallet like almost every other exchange offers.
The result is clients that are so angry that the Better Business Bureau (BBB) had to get involved. In fact, the BBB still has an alert on their website for Robinhood.
But no business is perfect, and Robinhood is taking its customer’s complaints seriously.
Therefore, they’re in the process of rolling out a beta test for allowing select customers to transfer their crypto off their platform instead of having to sell it if they want to free up their money.
Robinhood stock shares increased nearly 11% on the news.
So, what’s the bottom line here?
If the purpose of you wanting to know how to sell crypto on Robinhood is because you found out you can’t transfer your existing crypto, you might want to hold off. Robinhood expects to roll out crypto transfers to all customers in 2022.
Are You Ready to Sell Your Crypto?
If you don’t have a background in crypto technical analysis, here’s some of the soundest advice we can give you—sell your crypto at a profit, keeping “diamond hands” until you reach that point.
That said, we understand that sometimes you need some extra money. So, if you have to sell your crypto on Robinhood before you make a profit, you can get some of the losses back by writing them off on your tax return.
We’ll leave the ball in your court now. Happy trading, and good luck raking in those profits!