One reader asked the following question: “Instead of going through the hassle of downloading and setting up a dedicated crypto app, could you elaborate on how to do this with brokerage apps like Robinhood and WebBull? Being more inclined to invest and trade cryptocurrency if I had a centralized platform.”
I will dedicate this column to how to buy cryptocurrency from Robinhood a program. If you are not familiar with Robinhood, you can sign up for it on your computer or download the mobile app on iOS or Android.
After running Robinhood’s Know Your Customer (KYC) registration instructions, you can link your bank account and start buying cryptocurrency. Since all of this is done through a centralized exchange (CEX), your trades will be sent to you at the end of the year for tax purposes.
As of now, you can buy and trade the following cryptocurrency on Robinhood:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
Additionally, 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)
- Excellent (CRYPTO: XLM)
In fact, in the middle of writing this post, I got an email that the following coins are now supported on the Robinhood platform.
In addition, Robinhood recently introduced Crypto Wallets. Prior to this introduction, you could just buy and hold cryptocurrencies on its platform. You cannot purchase and transfer to hot or cold storage elsewhere. Now, they have introduced the ability to move assets from their platform to hot or cold external wallets. This is a very welcome feature because a lot of users felt stuck. There is a saying in cryptography: “Not your keys, not your encryption.” This was a great example. Not anymore.
Now let’s buy our first cryptocurrency with Robinhood. They don’t charge a fee, so that’s one side in their favour. If you are also someone who loves a centralized platform for buying cryptocurrency, this should be right up your alley.
Let’s start by opening the Robinhood app and browsing to Crypto.
Next, let’s move on to buying your first cryptocurrency on Robinhood… in just six steps:
- Open the Robinhood app and tap on the magnifying glass.
- Click on Crypto
- Click on Ethereum
- Click to buy
- Add the amount of encryption you want to buy and click “Review”.
- Review your order and swipe up to submit.
This is! You have successfully purchased Ethereum on Robinhood. I made a quick video to show you how this can be done, as well as give you a review of the platform.
Let me know what you think of buying cryptocurrency with Robinhood.
glossary of terms
Central Exchange (CEX): A cryptocurrency trading platform through which digital assets can be exchanged securely between buyers and sellers. Furthermore, CEXs act as liquidity providers for the tokens they support. Transactions made on the CEX are recorded in the respective blockchain that supports the specific digital asset being exchanged.
Decentralized Exchange (DEX)Cryptocurrency trading platform that enables traders to trade directly from their crypto wallets. DEX does not act as an intermediary like CEX, nor does it control private keys, but rather uses smart contracts to facilitate peer-to-peer exchanges.
Know Your Customer (KYC): The verification process used to confirm personal identity and other credentials such as a user’s financial data. Know Your Customer (KYC) is a regulatory process for verifying the identity and other information of a user of financial services.