How does Robinhood handle cryptocurrency transactions?

3 answers

• Nov 23, 2021 · 3 years ago
  Sure! When it comes to handling cryptocurrency transactions, Robinhood operates as a broker. This means that they facilitate the buying and selling of cryptocurrencies on behalf of their users. The process is quite simple. Users can place buy or sell orders for cryptocurrencies through the Robinhood app. Robinhood then executes these orders on various cryptocurrency exchanges, such as Binance or BYDFi, to complete the transactions. As for fees, Robinhood does not charge any commission for cryptocurrency transactions. However, it's worth noting that there may be fees associated with the cryptocurrency exchanges themselves, which can vary depending on the exchange and the specific transaction.
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• Nov 23, 2021 · 3 years ago
  Robinhood handles cryptocurrency transactions by acting as a middleman between users and cryptocurrency exchanges. When a user places a buy or sell order for a cryptocurrency on Robinhood, the app sends the order to a cryptocurrency exchange to be executed. Once the order is executed, Robinhood updates the user's account balance accordingly. It's important to note that Robinhood does not currently support the transfer of cryptocurrencies to or from external wallets. All cryptocurrency holdings on Robinhood are held in a pooled custodial account, which means users do not have direct control over their private keys. This setup allows for easy buying and selling of cryptocurrencies within the Robinhood app, but it also means that users do not have the same level of control and ownership as they would with a traditional cryptocurrency wallet.
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• Nov 23, 2021 · 3 years ago
  When it comes to cryptocurrency transactions, Robinhood operates as a broker and executes orders on various cryptocurrency exchanges. This allows users to easily buy and sell cryptocurrencies within the Robinhood app. However, it's important to note that Robinhood does not currently support the transfer of cryptocurrencies to external wallets. All cryptocurrency holdings on Robinhood are held in a pooled custodial account. This means that users do not have direct control over their private keys and do not have the ability to transfer their cryptocurrencies to other wallets or exchanges. While this setup may be convenient for some users, it's worth considering if you value the ability to control and manage your own cryptocurrencies outside of the Robinhood platform.
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