For various reasons, cryptocurrency investors choose to transfer crypto from Robinhood to Coinbase. The most typical is staying away from Robinhood’s limitations on cryptocurrency. The main limitation is the inability to transfer or receive cryptocurrency to or from Robinhood. Although it hasn’t been made public, they have talked about integrating Robinhood cryptocurrency wallets in the future.
By inviting friends, you may join the queue and climb the list. As a result, sending bitcoin from the Robinhood app to a Coinbase wallet is not now feasible. Nevertheless, we will walk you through the process of transferring your crypto holdings from Robinhood to Coinbase. You may send and receive cryptocurrency using a Coinbase crypto wallet.
Coinbase Vs. Robinhood Crypto: Which Is A Better Crypto Exchange?
Many people agree that Coinbase is the greatest site to buy cryptocurrency, move cryptocurrency straight to other sites, and withdraw cryptocurrency funds. Although the Robinhood app may be used for more than only purchasing or trading cryptocurrencies, it does so adequately. However, cryptocurrency trading in Robinhood is sometimes quite constrained.
Robinhood’s fairly new crypto transfer capability may run across certain barriers if you wish to buy or sell your cryptocurrency. Both platforms function in centralized systems. The user should have their email, address, and mobile number to create a payment option on a new account. Robinhood app is not intuitive as Coinbase. It’s more like a brokerage than a wallet.
Robinhood does not have fees for transactions! If you’re looking for an easy way to trade cryptocurrencies, Coinbase would be the better option.
Features
For novice investors, Robinhood and Coinbase both provide programs that are simple to use and have the ideal number of functionality. Users may use Coinbase, a cryptocurrency exchange, in more than 100 countries, such as all 50 U.S. states except Hawaii. In contrast, Robinhood is a 48-state-only online brokerage service for American customers. However, there are still more differences.
Coinbase allows investors to:
- Purchase cryptocurrency with a debit or credit card.
- Through tutorials and instructive films, learn about cryptocurrencies.
- Watch the online newsfeed for Coinbase to keep up with trends.
- Create cryptocurrency price alerts to get notifications on your app or phone.
- Execute cryptocurrency exchanges on the Coinbase platform.
- Withdraw money to your PayPal or HotWallet account.
- Watching brief videos can earn you cryptocurrency.
- Whether selling on the exchange is required, use the solo Coinbase wallet.
Robinhood doesn’t provide a digital wallet, unlike Coinbase. Users are unable to transfer coins until they have been exchanged for cash. Debit and credit cards are not accepted for money purchases. Robinhood allows you to buy exchange-traded funds (ETFs) using your coins and supports limit orders. Limit orders must be placed using the Coinbase Pro account.
Supported Currencies
With 139 different crypto alternatives, Coinbase offers a much wider variety of currencies than Robinhood and constantly adds more. In contrast, Robinhood only provides seven currencies, including Dogecoin, which you can also purchase on Coinbase:
- Litecoin (LTC)
- Ethereum Classic (ETC)
- Ethereum (ETH)
- Dogecoin (DOGE)
- Bitcoin SV (BSV)
- Bitcoin Cash (BCH)
- Bitcoin (BTC)
Because Robinhood allows you to buy stocks, ETFs, and options, investors frequently utilize it. Coinbase accepts USD, EUR, and GBP, whereas Robinhood only takes USD fiat cash. You may purchase coin fractions on both platforms.
Security
Similar security measures, such as two-factor (2F) verification and Federal Deposit Protection Corporation (FDIC) protection on USD holdings, are available on Coinbase and Robinhood. Customers who utilize Robinhood must “opt into Cash Management” to receive FDIC protection. But Coinbase has a slight advantage.
Coinbase has an assurance policy to cover any breaches of currencies in hot storage and retains 98% of its coins in air-gapped cold storage. Coins are also kept in cold storage, though Robinhood doesn’t go into detail. If Robinhood fails, your ETFs, stocks, and cash funds are covered by the Securities Investor Protection Corporation (SIPC).
Your currencies are safeguarded for Coinbase wallet customers by a 12-word encryption recovery phase. Robinhood offers device control if you see any strange devices so that you may disconnect these from your account.
Fees
Investors struggle to determine which platform is more affordable when purchasing cryptocurrencies since Robinhood, unlike Coinbase, don’t reveal fees for order flow. You could pay a greater market price for cryptocurrency because Robinhood, which functions as a brokerage, makes money by taking a share of market makers’ trades.
Robinhood’s absence of expenses on cryptocurrency or stock purchases seems better than Coinbase’s extensive list of fees. Trading without commissions does not, however, entail any expenses. One of the biggest fees for cryptocurrency exchanges is the 3.99% per trade you might pay on Coinbase. Your chosen form of payment will determine the actual price.
If you’re a market maker, meaning that you add liquidity to the market by posting bids and asks at your chosen prices, you might pay nothing. However, Coinbase Pro is free, and you may take advantage of significantly reduced costs by using it.
Ease Of Use
Although Robinhood and Coinbase have significant differences, both are extremely user-friendly and designed for novice investors. Coinbase supports debit or card payments, but Robinhood only permits ACH transactions. Thus it takes a little bit less time to set up and start trading there.
The Coinbase app has received greater evaluations than the other applications’ mobile apps, which are available for iOS and Android smartphones. Both websites provide knowledge and understanding, and trading-related information. However, Coinbase offers films and chances to earn tiny sums of cryptocurrency for viewing short video clips.
Regardless of your platform, both businesses offer email customer support, but replies aren’t always promptly. As a result, you might not obtain a prompt answer to your query. Coinbase is a better option if you’re looking for customer support.
The Robinhood Platform’s Advantages
Robinhood separates itself from the competition since it is one of the very few stock brokerages that somehow still permits free bitcoin trading. But unlike pure-play cryptocurrency brokerages, Robinhood’s luster is waning. While it once boasted of having the “lowest prices anywhere,” those days are gone.
Robinhood Benefits
- Without commissions
- User-friendly software
- Options for trading stocks and cryptocurrencies
- Extended-hours trading
- Can trade on the go with the mobile app
Robinhood Restriction
- No withdrawals of cryptocurrency
- Seven cryptocurrencies only
- Only accessible to users in the United States
The same guideline applies to the security of the Coinbase and Robinhood exchanges: never leave your cryptocurrency in a location where it might be hacked; instead, put it in cold storage.
The Robinhood Platform’s Disadvantages
Investors should be cautious of Robinhood, even though its low fees and convenience are guaranteed to draw customers. Recently, Robinhood has been the target of legal action, public criticism, and regulatory sanctions. The Securities and Exchange Commission (SEC) fined Robinhood $65 million in 2020 for deceiving clients.
Similar drawbacks apply while using Coinbase, such as when access to the account is limited because of outages as you scramble to purchase or sell cryptocurrencies. Not accessible Similar criticisms include Robinhood and the server error. In the past, when traders and investors were looking for strategies to exit bear markets & downward trends, non-accessibility frequently happened.
The simplest approach to identify the problem is to go to Robinhood’s official support site and see if there are any reports of server problems. There are deficiencies or a lack of the following characteristics present in other brokerages:
- A lack of retirement accounts: Only taxable brokerage accounts are provided by Robinhood.
- No bonds or mutual funds: The absence of bonds and mutual funds can make it challenging to create a diversified portfolio.
- Insufficient customer support: Although more responsive, service is still below average compared to other brokerages.
- Reliability: Unexpected disruptions can result in trading limitations amid volatile markets. Regulators have accused Robinhood of deceiving clients for these and other reasons, leading to large fines.
Overall, Coinbase is a more reliable way to buy and sell cryptocurrencies. However, it’s crucial to consider all the risks involved in trading cryptocurrencies on any platform. It’s essential to understand the downsides of Robinhood before using the platform to trade cryptocurrencies. When looking for a place to store or trade your cryptocurrencies, do your research to find the best option.
From Robinhood, Is It Possible To Transfer Crypto?
Transferring bitcoin from Robinhood to some other cryptocurrency exchange is a common choice made by many people. Usually, it’s to get around Robinhood’s prohibitions on cryptocurrency. Unfortunately, consumers cannot move cryptocurrency straight from Robinhood to another brokerage or cryptocurrency exchange.
In addition to being unable to move coins out of Robinhood, you are prohibited from transferring them into the Robinhood cryptocurrency account. This is quite constricting, and people who encounter it might not like how the brokerage operates. The decision of some to relocate to another one is understandable.
Customers cannot now withdraw coins from their accounts. Therefore you cannot add or remove cryptocurrencies from your account. Since Robinhood has some limitations, you will need to take extra measures to move all of your cryptocurrency to another platform safely.
The organization claims that while they are actively working to provide transfer alternatives for supported cryptocurrencies, you will not be able to make legitimate withdrawals at this time. Many limitations currently exist to providing novice cryptocurrency investors with some security. One of these limitations is being unable to move cryptocurrency out of Robinhood.
When you store your cryptocurrencies on the Robinhood platform, none of your cryptocurrencies can ever leave the system. This will prevent novice investors from falling for fraud and causing their Bitcoin to be lost. In addition, Robinhood provides a cryptocurrency wallet that makes it simpler for users to transfer their holdings.
How To Transfer Crypto From Robinhood To Coinbase
Selling your crypto assets in Robinhood is the only way to transfer crypto from Robinhood to Coinbase until the updated Robinhood crypto account is completely implemented. The money would then be transferred to your bank. You would then transfer that money to a Coinbase account. You would buy back the cryptocurrency.
Remember that if you trade your cryptocurrency for a profit, you can be subject to capital gains taxes. Not to mention that the exchange rate can change when you transfer money from Robinhood to Coinbase. Regrettably, Robinhood does not offer a cryptocurrency transfer feature as it does for stock transfers.
You may move your stocks from Robinhood to another brokerage for a charge. However, at this time, crypto cannot be transferred. Here’s how you would sell your Robinhood assets and transfer them to Coinbase.
Trading Robinhood Cryptocurrency Assets
The first stage is the sale of the cryptocurrency you want to move because direct transfers are impossible. Remember that if you trade for a profit, this might result in a taxable event. You can sell all or a portion of your different crypto assets.
How To Trade Cryptocurrency On A Phone
- Click Trade after locating the cryptocurrency you wish to sell, then select Sell.
- Put the amount of cryptocurrency you wish to sell in dollars.
- To confirm the accuracy of the information, click Review.
- To submit your request, swipe up.
How To Trade Crypto Assets Online
- Locate the cryptocurrency you want to sell and go to its information page.
- In the choices window, select Sell.
- Put the amount of cryptocurrency you wish to sell in dollars.
- Check the data to ensure it is accurate.
- Send in your buy order.
Before your cash becomes available for withdrawal, there is a settling period lasting the first trading day plus two additional trading days. You won’t be able to remove any of your money from Robinhood at that period. The next stage is transferring the money to the bank account when those days have passed.
Robinhood Funds Transfer To Bank Account
The money will then be sent into your bank account, linked to your Robinhood account, as follows.
Using A Mobile Device To Transfer
- In the lower right of the screen, tap on your Account.
- Select “Transfer to Your Bank” under “Transfers”
- Select the bank account to which you want to transfer money, and then enter the amount you want to send.
- Once you have ensured the data is accurate, click Submit.
Using Web To Transfer
- Select Account in the top right corner of the website to learn how to transfer.
- Using Banking
- Start a money transfer from Robinhood 3 by clicking the button in the right-hand panel.
How To Create A Coinbase Account
You must transfer the money to the Coinbase account once it has been paid in your bank account. You may merely deposit money from your linked bank account if you have such an account with Coinbase. If not, follow these simple steps to get a Coinbase account! To create a Coinbase account, there are a few prerequisites.
These include having a phone number registered to your smartphone and being at least 18 years old, which may be verified with a government-issued ID.
- Enter your details; the state, the full legal name, the email address, and the password
- Read the User Agreement and the Privacy Statement.
- Check the box to indicate your acceptance and click CREATE ACCOUNT or sign up.
- Click the link emailed to the email address you supplied earlier to confirm your email.
- To finish the verification, sign in one more using your email address and password from before.
- Enter the verification code issued to you to confirm your phone number, then click “Submit.”
- Add personal information to government-issued identification
- Answer questions like “What do you utilize Coinbase for?” and “Where do you get your money from?” as well as those about your current job, employer, and the last 4 digits of the Social Security number.
- Establish your identity
- Link a form of payment that differs depending on where you live.
- Consider implementing 2-step verification right away to safeguard against illegal access.
The cost of opening an account is zero. However, there are costs associated with buying and trading cryptocurrencies. This cost mostly depends on the volume of the transaction.
Funding Your Coinbase Account With Deposits
Here are the procedures to deposit money from your linked US bank account after registering for a Coinbase account.
- Launch the trade window
- Pick Deposit from the Wallet Balance menu.
- Choose USD as the currency type.
- Select the Tab for Bank Accounts.
- You will be directed to choose From and Add Account to complete the account verification.
- Using Plaid, link your bank account.
Buy Cryptocurrency On Coinbase
Your crypto holdings in Robinhood have now been liquidated, and the funds have been transferred to Coinbase. If you want to duplicate what you had before on Robinhood, you would now buy cryptocurrency on Coinbase. However, you’ll discover that Coinbase offers a considerably wider selection of cryptocurrencies for trading. It could be a good idea.
How to buy cryptocurrency via Coinbase is as follows:
- Open the Coinbase application or sign in online.
- To access the Trade tab, go to the bottom of the application or the online app.
- Choose the cryptocurrency asset you wish to buy.
- At the bottom, click on the blue Trade button.
- Choose “Pay with cash.”
- Enter the desired purchasing price in dollars.
- Toggle the blue Buy button with the preview
- Review the order’s specifics and costs before confirming it.
How Quickly It Takes To Transfer Crypto From Robinhood To Coinbase
A typical transaction often takes close to 24 hours to appear in a user’s account. One of the top platforms for trading cryptocurrency, Robinhood, now enables customers to do so easily. The newest Robinhood listings have grown recently, incorporating more well-known cryptocurrencies for customers to investigate as part of its ongoing effort to increase its scope.
Although Robinhood hasn’t yet provided a debut date for the cryptocurrency wallet, it is known that it is currently in development. To be among the first to access the crypto wallet, you may sign up for the waiting list on their website. You must recommend your acquaintances join the queue to advance on it.
FAQs about Transfer Crypto From Robinhood To Coinbase
Do I need to quit Robinhood?
It depends on your preferences and investing goals, I guess. Robinhood, however, is not tax-efficient and does not provide bonds that aid in portfolio diversification. As a result, maintaining competent investing while using Robinhood is challenging. Therefore, maintaining Robinhood does not seem viable if you search for a long-term investing plan.
Why can’t I get money out of Robinhood?
It may be because you’ve used all of your permitted drawls. You are now limited to withdrawing $50,000 or making five daily transactions. As a result, if you attempt to withdraw greater than the allowed amount, there may be an error or withdrawal limitation.
Is keeping cryptocurrency in Robinhood secure?
Your cryptocurrency is secure with Robinhood. They must follow several rules, such as the Bank Secretary Act.
How do Robinhood and Coinbase operate?
Both systems operate similarly, allowing users to register for an account through a simple sign-up process and employing identical security verification procedures. Robinhood charges traders an event flow fee when executing your transaction through a market maker.
Once your bank account is connected, you can buy cryptocurrency, but until you sell your coins for cash, you won’t be able to access them or move those to a digital wallet. Coinbase, in contrast, is an online exchange for cryptocurrencies. Your coins are entirely controlled, and you may always withdraw them to a cold storage account or a digital wallet.
Who should utilize Robinhood or Coinbase?
Coinbase and Robinhood are user-friendly for novice investors and those looking to invest small sums. Both systems are quite good for new users. Robinhood consumers may spend less on each transaction because there are no commission costs with Robinhood, but Coinbase fees might significantly reduce your investment.
Since you can solely trade cryptocurrency on Coinbase, Robinhood is used by those who don’t want to withdraw their cryptocurrency and want a platform to sell crypto, ETFs, stocks, and options. However, Coinbase’s digital wallet and 51 currencies provide a superior alternative if you wish to withdraw your coins or even have access to other cryptocurrency options.
Final Reflections
Until the Robinhood crypto accounts are made available, it might be difficult to withdraw your cryptocurrency holdings. So how to transfer crypto from Robinhood to Coinbase? If you genuinely want to stop using Robinhood for cryptocurrency trading, you must sell your crypto assets, transfer the proceeds to the account, transfer the proceeds to Coinbase, and then buy back your crypto there.
