Robinhood is a popular trading platform for cryptocurrency lovers. The exchange allows you to open an account in just a few minutes and offers free cryptocurrency trading, which are just a few of the reasons why so many people are attracted to it.
Robinhood has its top competitors such as Fidelity, TD Ameritrade, Webull. Robinhood has reviewed by many experts to be a beginners trading platform. Many professional traders transfer stocks from Robinhood to Fidelity, TD Ameritrade, Webull in order to make use of additional trading features found on these platforms.
However, if you just got into Robinhood, you will have to buy and sell crypto (crypto trading) in order to make profit. A common question usually arises among crypto traders, "how many times can I buy and sell crypto on Robinhood?"
If this is what you've been looking to know, then you are in the right place. In this article, I will explain what you need to know when trading crypto on Robinhood.
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Can You Trade Crypto on Robinhood?
Cryptocurrencies are not stocks, and your cryptocurrency investments are not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). Robinhood Markets, Inc.'s wholly-owned subsidiaries Robinhood Financial, LLC, and Robinhood Crypto, LLC, are wholly-owned subsidiaries of Robinhood Markets, Inc.
Because of this, you can trade cryptocurrencies with a Cash, Instant, or Gold account on Robinhood.
Your Robinhood Crypto account may be restricted if your Robinhood Financial account is restricted for any reason. You won't be able to trade cryptocurrencies until your Robinhood Financial account's limitation is lifted.
CHECK ALSO: How to Get Unlimited Day Trades on Robinhood?
How to Buy Crypto On Robinhood?
- Navigate to the cryptocurrency's Detail page.
- Tap "Trade".
- Tap "Buy".
- Tap "Order Types" in the upper right order.
- Select your preferred order type.
- Confirm your order.
- Swipe up to submit your order.
How to Sell Crypto On Robinhood?
- Go to the application and navigate to the Detail page of the cryptocurrency.
- Tap "Trade".
- Tap "Sell".
- Then, look in the upper right corner and tap "Order Types".
- Choose the order type that you prefer.
- Now, confirm your order.
- To submit the order, you will have to swipe up.
How Many Times Can I Buy and Sell Crypto on Robinhood
On Robinhood, you would not have to buy full coins. You can simply place an order to buy or sell cryptocurrency in fractional amounts.
The number of times you can buy and sell crypto on Robinhood isn't fix. You can order to buy or sell your crypto whenever you want in fractional amounts. However, your account should not be affected by any limitations.
Another important factor to consider is the position limit. This factor helps you better determine the amount of crypto you can buy and hold using Robinhood crypto.
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Robinhood Crypto Position Limits
The maximum amount of cryptocurrency you can buy and hold using Robinhood Crypto is referred to as position limits. The position limits for cryptocurrencies are listed below. Please keep in mind that position limits are subject to change at the discretion of Robinhood Crypto.
A maximum cost base of $16,000,000 per cryptocurrency is the position limit for Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
The maximum cost basis per cryptocurrency for Bitcoin Cash (BCH), Bitcoin SV (BSV), Litecoin (LTC), and Ethereum Classic (ETC) is $5,000,000.
You can buy and hold a cryptocurrency for as long as the cost basis limit allows. Due to market swings affecting cryptocurrency values, the value of your crypto on Robinhood may surpass your position limits.
Robinhood Crypto Limit Orders
A limit order is a buy or sell order for a specific amount at a certain price or better.
Limit Orders (placed in USD):
- Buy — You'll never pay more than the USD amount you specify to buy a cryptocurrency, rounded up to the nearest cent.
- Sell — You'll never get less than the amount you choose when selling your bitcoin, rounded down to the nearest cent.
Limit Orders (placed in fractional amounts):
- Buy — You'll always get the exact amount of cryptocurrency you ordered. The maximum amount in USD you pay for a defined amount of crypto, potentially rounded up to the closest cent, is the limit price for crypto buy orders.
- Sell — You'll always sell exactly the quantity of cryptocurrency you specified in your order. The minimal amount in USD you're willing to receive for a particular amount of crypto, maybe rounded down to the closest cent, is the limit price for crypto sell orders.
Because your crypto assets are housed in your Robinhood Crypto account rather than your Robinhood Financial account, they are classified as non-marginable and subject to a 100 percent maintenance requirement. This means that your cryptocurrencies must be fully backed by cash and cannot be used as security for stock investments.
Final Thoughts on How Many Times Can I Buy and Sell Crypto on Robinhood
Robinhood is a well-known commission-free trading platform among traders. To get started with crypto trading, you will need to buy crypto before placing a sale order on Robinhood. The number of times you can buy and sell crypto on Robinhood depends on some factors such as account limitations, and position limits.