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Cryptocurrency Investing

Cryptocurrency Investing

Here are a few things to know about investing with Robinhood Crypto!

Market Orders

To help protect your market orders against dramatic price moves, we adjust market orders to limit orders collared up to 1% for buys, and 5% for sells. Collars are based off the last trade price. This means that your order won’t execute if the price of the cryptocurrency moves more than 5% lower than its price at the time you placed a market sell order, or more than 1% higher than its price when you placed a market buy order, until it comes back within the collar.

The market data displayed in this demo is not real time. crpyto_market_order.PNG

Limit Orders

A limit order is an order placed to buy or sell a specified amount at a specified price or better. You don’t have to worry about day trading limits on cryptocurrencies because they’re not regulated by FINRA or the SEC like stocks and options.

The market data displayed in this demo is not real time.

crypto_limit_order_.jpeg

Limit Orders (placed in USD):

  • Buy: You’ll never pay more than the USD amount you enter to purchase a specified amount of a cryptocurrency.
  • Sell: You’ll never receive less than the amount you enter to sell your specified amount of a cryptocurrency.

Limit Orders (placed in fractional amounts):

  • Buy: You’ll never pay more than the estimated cost shown on your screen to purchase a specified amount of a cryptocurrency.
  • Sell: You’ll never receive less than the estimated credit shown on your screen to sell a specified amount of a cryptocurrency.
Note

Limit orders aren’t guaranteed to execute. Your limit buy order will only execute if the cryptocurrency meets or falls below your limit price, and your limit sell order will only execute if the cryptocurrency meets or goes above your limit price.

Tip

You can switch between placing trades in fractional amounts of the cryptocurrency and placing trades in dollar amounts by tapping Amount in USD or Amount in BTC/ETH/LTC/BCH/DOGE on the order screen.

Order Sizes

You don’t have to buy full coins on Robinhood. You can place an order to buy or sell cryptocurrencies at fractional amounts.

Tip

The order limit for cryptocurrencies is a $250,000 cost basis.

Adding Cryptocurrencies to Your Watchlist

iOS

You can add a cryptocurrency to your Watchlist in your iOS app:

  1. Tap the magnifying glass icon at the bottom of the screen.
  2. Search for the cryptocurrency name or symbol.
  3. Tap + and we’ll add it to your Watchlist.
Android

You can add a cryptocurrency to your Watchlist in your Android app:

  1. Tap the magnifying glass icon at the bottom of the screen.
  2. Search for the cryptocurrency name or symbol.
  3. Tap + and we’ll add it to your Watchlist.
Web

You can also add a cryptocurrency to your Watchlist in your web app:

  1. Click the search bar at the top of your screen.
  2. Type in the cryptocurrency name or symbol.
  3. Click Add to Watchlist on the right panel.

Estimated Buy and Sell Price

You can see the estimated buy or sell price for a cryptocurrency in your mobile app:

  1. Navigate to the Detail page for the cryptocurrency.
  2. Tap Trade.
  3. Tap Buy or Sell.
  4. Tap Est Buy Price or Est Sell Price.

You can also see the estimated buy or sell price for a cryptocurrency in your web app on the order panel.

Why is the estimated buy price different than the estimated sell price?

The difference between the estimated buy and sell price is called the spread. The size of the spread is a measure of the liquidity of the market, or how quickly and easily you can convert between cash and this cryptocurrency. Typically, if more people are trading a cryptocurrency, it'll be easier to find someone willing to trade with you. This is why you may see smaller spreads for better known cryptocurrencies like Bitcoin, and larger spreads for lesser known cryptocurrencies.

Trading Times

You can invest in cryptocurrencies 24/7 on Robinhood Crypto, with the exception of our daily downtime for site maintenance. You’ll be notified in-app about scheduled maintenance windows and their duration. During a maintenance window, you can place orders to buy or sell cryptocurrencies, but they won’t execute until the maintenance window is finished. Furthermore, all pending orders will remain pending during this time. 24_7investing.jpg

Robinhood Crypto and Robinhood Financial

Your cryptocurrency assets aren’t part of your Robinhood Financial account. Your brokerage account is with Robinhood Financial LLC and allows trading of equities and options, while cryptocurrency trading is done through an account with Robinhood Crypto, LLC. Robinhood Crypto is not a broker dealer and is not a member of the Financial Industry Regulatory Authority (FINRA). Robinhood Crypto is also not a member of the Securities Investor Protection Corporation (SIPC), which means your cryptocurrency investments are not protected by SIPC.

For these reasons, you can trade cryptocurrencies on Robinhood with a Cash, Instant, or Gold account.

Keep in mind

Your cryptocurrency assets are held in your Robinhood Crypto account, not your Robinhood Financial account, so they’re treated as non-marginable, with a maintenance requirement of 100%. This means your cryptocurrencies need to be backed entirely by cash, and can’t serve as collateral for equities positions.

Instant Cryptocurrency Settlement

You’ll receive the proceeds from your sales to purchase stocks, options, or other cryptocurrencies immediately. However, the ACH settlement period still applies when you withdraw the funds from your Robinhood Crypto account to your bank account. This means you won’t be able to withdraw the proceeds from your sales for five business days.

Crypto Buying Power

Funds from stock, ETF, and options sales become available for buying crypto within 3 business days. However, limited cash deposits and all proceeds from crypto sales are available to instant accounts immediately.

Cost Basis

We calculate cost basis on a First-In-First-Out (FIFO) basis. This means we’ll sell your cryptocurrencies in the order you bought them.

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