With the growing popularity of cryptocurrency, it is no surprise that it is increasingly used in several places. From those who use crypto to save for a rainy day to those who just want to use it to make digital purchases, many wonder if you can and should buy crypto on Robinhood.
Although Robinhood is most widely used as a stock trading website and app, you can buy crypto through them as well. It is important to ensure that you have done your research before investing in crypto through the site because as with any investment, there is risk involved.
There are so many websites and apps that you can download if you are interested in trying to invest. Keep reading to learn more about whether you should invest in crypto through the popular app, Robinhood.
Advantages to Buying Crypto on Robinhood
As with most things, there are advantages and disadvantages to purchasing cryptocurrencies such as Litecoin, Dogecoin, Ethereum, and Bitcoin on Robinhood. For the most part, it comes down to what you are looking to do with your crypto, once you own it.
One advantage to buying your crypto on Robinhood is that if you also use the app to purchase your stocks, then having it all in one place makes sense. Since most investors recommend that you diversify your portfolio, having one platform to do that can be a time saver.
Another advantage of using Robinhood to purchase crypto is that there are fewer fees that seem to come out of the left field. Many other apps and websites often charge for things that may or may not hold value to investors.
Disadvantages of Buying Crypto on Robinhood
The major disadvantage of buying your cryptocurrency on Robinhood is that you cannot use digital currency for purchases or to transfer between crypto wallets. The only thing you can do on Robinhood is purchase, sell, and trade.
For many who choose to invest in cryptocurrency, they do so to have the ability to make it work for them through buying, selling, and trading. Others enjoy having crypto to use for the purchase of various items or to accept it for payment from others.
Since there is a limited usage for crypto on Robinhood, many investors choose to use other crypto exchanges for their more extensive functionality. This is because those who purchase crypto typically have a plan for the future.
What Are the Steps to Buying Crypto on Robinhood?
If you choose to purchase your cryptocurrency on Robinhood, there are several things you can do to make it more secure and worthwhile. Whether you use your computer or your mobile device, you will find the process quite simple.
If you are using your computer to open your Robinhood account, you will simply follow the prompts on the screen to guide you through the process. While the same is true for your mobile device, you also have to start by downloading the app from the App Store before setting up your account.
If you follow the steps listed below, you should be able to make your purchase and begin your cryptocurrency journey.
Get the App From Your App Store
The first step in purchasing crypto through Robinhood is downloading the app to your cell phone from the App Store or Google Play Store. You should be able to find it pretty easily if you type in Robinhood into the search bar.
Create an Account
Like other apps when you first download them, you will need to sign up for Robinhood before you can access any specific feature. Keep in mind that because you will be using the app for an exchange of money, you will need to provide several pieces of personally identifiable information.
Ready to Purchase Crypto
Once you have downloaded the app and created your account, you are ready to start making those crypto purchases. One thing to keep in mind here is that you do have to fund your account, which requires that you have it connected to bank accounts. This is to ensure that any fiat money that is exchanged can be done without delay.
When Should You Buy Crypto on Robinhood?
Choosing to purchase crypto through Robinhood is more of a personal choice, however, there are certain guidelines that you should follow to make the most of your time and money. These guidelines include knowing what you will be using the crypto for.
If your ultimate goal is to hold your crypto and build over time, then Robinhood is a clearcut choice since it does not require a lot of attention. This is especially true if you are also using the company for your stock portfolio since it is great to have it all in one place.
As an alternative, you may be buying crypto so you can use it as a medium of exchange for goods and services. If this is the case, then Robinhood may not be the best choice for your cryptocurrency purchase.
At the end of the day, the reason for purchasing crypto will determine whether or not you should use Robinhood. This is mostly because of the limitations that the app has when it comes to what you can do with your digital currency once you purchase it.
What Can You Do With Crypto?
Once you have decided whether or not you want to use Robinhood crypto or not, you may be wondering what you can do with the digital currency after you own it. Keep in mind that many different options exist.
One of the most popular choices for using your crypto is to gamble online at various websites and casinos. If playing online games with your crypto sounds like the perfect way to use your digital money, then MintDice may be the perfect website for you.
You can also use your cryptocurrency to invest in other projects like NFTs, play games like Axie Infinity, and even invest in an app like Voyager to allow your cryptocurrency to grow. But keep in mind you need to buy your cryptocurrency in a place other than Robinhood to be able to engage in many of these options.
Final Thoughts on Robinhood Crypto
The bottom line is that Robinhood is a company that has been around for quite some time and mostly deals with the buying and selling of stocks. However, there are a good many people who use Robinhood as a way to better manage the portfolios they build over time.
For those who already use Robinhood for their stock portfolio, choosing to purchase crypto through them is a no-brainer. This is because while diversifying your portfolio is important, having all of your investments in one place can make a huge difference.