Crypto Coach: How to purchase crypto coins using Robinhood

In just six steps, the Robinhood app enables first-time crypto users to use money from their bank accounts to buy crypto coins for their digital wallets. Crypto Coach shows you how.

One of my readers, asked the following question: "Instead of going through the hassle of downloading and setting up from a dedicated crypto app, can you break down how that can be done through brokerage apps like Robinhood and WeBull? I think I'd be more inclined to invest and trade crypto if I had a centralized platform."

I'm going to devote this column to how to purchase cryptocurrency on the Robinhood platform. If you're not familiar with Robinhood you can sign up for it on your computer or download the mobile app on the iOS or Android platform. 

After you run through Robinhood's Know Your Customer (KYC) registration guidelines, you can link up your bank account and begin purchasing crypto. Since this is all done through a centralized exchange (CEX), your trades will be sent to you at the end of the year for tax purposes.

As of right now, you can purchase and trade the following cryptocurrency on Robinhood:

  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Bitcoin SV (BSV)
  • Dogecoin (DOGE)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)

In addition, you can get real-time market data on the following coins:

  • Bitcoin Gold (CRYPTO:BTG)
  • Lisk (CRYPTO:LSK)
  • Monero (CRYPTO:XMR)
  • NEO (CRYPTO:NEO)
  • OmiseGO (CRYPTO:OMG)
  • Qtum (CRYPTO:QTUM)
  • Ripple (CRYPTO:XRP)
  • Stellar (CRYPTO:XLM)

In fact, in the middle of writing this post, I got an email stating the following coins are now supported on the Robinhood platform.

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Robinhood

In addition, Robinhood recently introduced Crypto Wallets. Prior to this introduction, you could only purchase crypto and hold it on its platform. You couldn't purchase and transfer to hot or cold storage elsewhere. Now, they've introduced the ability to transfer assets off their platform and onto external hot or cold wallets. This is a very welcomed feature because a lot of users felt stuck. There's a saying in crypto: "Not your keys, not your crypto." This was a great example. Not anymore.

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Robinhood

Let's now purchase our first crypto using Robinhood. They don't charge fees so that's one aspect in its favor. If you're also a person that likes a centralized platform for purchasing crypto, this should be right up your alley.

Let's begin by opening the Robinhood app and browsing to Crypto.

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Robinhood

Next, let's walk through purchasing your first crypto on the Robinhood platform…in just six steps:

  1. Open the Robinhood app and tap on the magnifying glass.
  2. Tap Crypto
  3. Tap Ethereum
  4. Tap Buy
  5. Add the amount of crypto you want to purchase and tap "Review."
  6. Review your order and swipe up to submit.

That's it! You've successfully purchased Ethereum on Robinhood. I made a quick video to show you how this could be done, as well as give you a review of the platform. 

Let me know what you think of purchasing crypto with Robinhood.     

Glossary

Centralized Exchange (CEX): A cryptocurrency trading platform through which digital assets can be safely exchanged among buyers and sellers. What's more, CEXs act as liquidity providers for the tokens they support. The transactions made on a CEX are recorded in the respective blockchain that powers the specific digital asset being exchanged.

Decentralized Exchange (DEX): A cryptocurrency trading platform that enables traders to trade from their crypto wallets directly. A DEX neither acts as an intermediary like a CEX, nor takes control over private keys, but rather it uses smart contracts to facilitate peer-to-peer exchanges.

Know Your Customer (KYC): The verification process used to confirm the personal identity, and other credentials such as financial, of a user. KYC is a regulatory process of ascertaining the identity and other information of a financial services user.

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