How to Sell Crypto on Robinhood: Complete Step-By-Step Guide

Selling cryptocurrency on Robinhood has caught on with traders who want a quick, hassle-free way to cash out their digital assets. The app lets you sell crypto from your Cash, Instant, or Gold accounts—just a few taps on your phone, or a couple of clicks on the website, and you’re done. To sell crypto on Robinhood, pick the coin you want to sell, hit the sell button, enter your amount, and submit your order.

Robinhood’s clean interface appeals to both newcomers and seasoned traders. It supports a handful of the most popular cryptocurrencies and gives you several order types to choose from. Still, it’s important to know the platform’s quirks and limits before you dive in.

This guide covers how to sell crypto on Robinhood, step by step, for both the app and the web. We’ll also touch on timing, fees, and withdrawal options—since those details can really shape your experience.

Step-By-Step Process to Sell Crypto on Robinhood

Selling cryptocurrency on Robinhood starts by opening your crypto account through the app or website. From there, things move pretty quickly.

Key Considerations When Selling Cryptocurrency on Robinhood

Robinhood Crypto, LLC sets position limits: Bitcoin, Ethereum, Dogecoin, PEPE, SHIB, and XRP all max out at a $50 million cost basis, while other coins cap at $20 million. If you want to cash out to your bank, you’ll wait five business days for ACH transfers, but you can use the proceeds instantly to buy stocks or more crypto within Robinhood.

Transfer and Withdrawal Limits and Timelines

Robinhood doesn’t let you transfer crypto out to external wallets or self-custody wallets. So, moving your coins to Coinbase, Kraken, or a hardware wallet just isn’t an option here.

Withdrawal Timeline:

• Immediate for stock and crypto trades within Robinhood

  
  

• 5 business days for ACH bank withdrawals

  
  

• No crypto deposits accepted from outside sources

The platform uses the First-In-First-Out (FIFO) method to calculate cost basis. If you ever do get crypto transferred into Robinhood from somewhere else, the system just assigns it a $0 cost basis since it can’t track where it came from.

Major coins like Bitcoin, Ethereum, Dogecoin, PEPE, SHIB, and XRP let you hold up to $50,000,000 in cost basis. For everything else, the limit is $20,000,000. Not exactly pocket change, but worth knowing if you’re a big player.

Network Fees, Gas Fees, and Cost Basis

Robinhood skips the usual gas and network fees for crypto trades. There’s no commission fee either, which is rare compared to most rivals.

Hidden Costs Include:

• Bid-ask spreads on every trade

  
  

• Market swings while your order executes

  
  

• 1% buffer on buys

  
  

• 5% buffer on sells

You won’t see direct gas fees, even for ERC-20 tokens. But spreads can get chunky, especially with less popular coins. Bitcoin and Ethereum usually have tighter spreads, but that’s not always guaranteed.

The FIFO cost basis rule matters for taxes. When you sell, Robinhood offloads your oldest holdings first, which can change your capital gains picture.

Security, Compliance, and Regulation

Robinhood Crypto, LLC holds a virtual currency business license from the New York State Department of Financial Services and several other state regulators. It’s not a FINRA member, and there’s no SIPC protection for your crypto.

Regulatory Status:

• Licensed for virtual currency in New York

  
  

• No pattern day trading rules for crypto

  
  

• Crypto assets kept separate from stocks and options

  
  

• 100% maintenance requirement (no margin allowed)

If Robinhood puts a restriction on your investing account, your crypto trading gets locked up too. Both sides are linked, so keep an eye out for account status changes.

You can’t use crypto as collateral for stock trades. Every crypto purchase needs to be fully backed by cash—no margin trading here.

Comparison With Other Platforms (Coinbase, Kraken, eToro)

Robinhood lists fewer cryptocurrencies than Coinbase or Kraken, but you get commission-free trading. Unlike eToro, though, you can’t transfer crypto off the platform.

Platform Differences:

Coinbase and Kraken let you move crypto to and from your own wallets, but they do charge network fees. You get more control, but you’ll pay for it.

eToro has some social trading perks, but crypto transfers are limited or blocked in a lot of places. Robinhood’s all-in-one approach works best if you like trading stocks and crypto together without leaving the app.

Frequently Asked Questions (FAQs)

Selling crypto on Robinhood means dealing with certain steps, limits, and timelines. Withdrawal periods, trading restrictions, and the way fees are structured all factor into your experience.

What are the steps to sell cryptocurrency on Robinhood and withdraw cash?

Open the Robinhood app, tap the crypto you want to sell, and hit “Sell.” Pick your order type—market, limit, stop, or stop limit. Market orders go through right away at the current price, with a buffer built in.

Once you sell, the money lands in your Robinhood Crypto account instantly. You can use it to buy stocks, options, or more crypto right away.

If you want to move cash to your bank, go to the transfers section, pick your amount, and confirm. That’s it—just expect a wait for the transfer to clear.

After selling cryptocurrency on Robinhood, how long does it take for the funds to be available?

Proceeds from crypto sales show up immediately in your Robinhood account. You can spend them on stocks, options, or other crypto trades without delay.

But when you transfer money out to your bank, ACH rules kick in. You’ll wait up to five business days before you see the funds in your bank account, no matter when you sold.

What cryptocurrencies can I trade on Robinhood?

Robinhood lets you trade Bitcoin, Ethereum, Dogecoin, XRP, PEPE, SHIB, and a few others. They update the list pretty often, so check the app for the latest lineup.

You can buy fractions of any supported coin. The minimum order is $0.01 if you’re using market maker routing, or $0.03 for smart exchange routing.

Each coin has its own position limits and trading rules, so it’s worth double-checking before you go big on a new asset.

Is there a limit to how much cryptocurrency I can withdraw from Robinhood at once?

Robinhood puts position limits on your crypto holdings—not so much on withdrawals. For Bitcoin, Ethereum, Dogecoin, PEPE, SHIB, and XRP, you can hold up to $50 million in cost basis per coin. Other coins are capped at $20 million.

Withdrawal limits depend on your bank and how you’ve verified your account. You can check your personal limits in the app’s settings if you’re not sure.

What fees are associated with trading cryptocurrency on Robinhood?

Robinhood skips commission fees on crypto trades. Instead, you pay the spread—the difference between the buy and sell price.

Big-name coins like Bitcoin usually have tighter spreads, while lesser-known ones can get pricey. Market swings and low liquidity make spreads even wider sometimes.

Robinhood shows you estimated prices before you buy or sell, so you’ll have a sense of what you’re paying overall.

How do I access the Robinhood crypto wallet for transactions?

You’ll find your cryptocurrency holdings in your Robinhood Crypto account, which sits apart from your main investing account. Just open up the main Robinhood app and tap into the crypto section—easy enough, right?

There, you can check out your current holdings, see market values, and trade if you feel like it. Want to track how a specific coin’s doing or make a quick buy or sell? It’s all right there.

Robinhood Crypto stands on its own, separate from Robinhood Financial. Because of this, crypto assets follow different rules and protections than your usual investments.