Struggling to figure out how to cash out your crypto from Robinhood? You’re definitely not alone! It’s one of the most common questions out there, especially with crypto gaining so much traction. This guide will walk you through everything you need to know, whether you want to convert your digital assets into good old cash and send it to your bank, or if you’re looking to move your crypto to another wallet. We’ll break down the steps, chat about important things like fees and taxes, and even touch on what to expect for specific coins like Bitcoin, Ethereum, and XRP.
Robinhood has really changed how many people get into investing, making it super accessible to dive into stocks and cryptocurrencies. But when you’re ready to take some profits or just move things around, the process can seem a bit tricky. We’re going to cover the two main ways people “cash out” their crypto from Robinhood:
- Selling your crypto for US dollars right inside the Robinhood app and then sending that cash to your linked bank account. This is what most people mean when they talk about “cashing out.”
- Transferring your crypto to an external wallet. Robinhood has evolved, and now you can actually move supported cryptocurrencies off the platform to a wallet you control, or to another exchange.
We’ll make sure you understand both options so you can choose what works best for you. And hey, if you’re thinking about exploring other platforms with even more robust crypto features and different ways to manage your digital assets, you might want to check out 👉 Easy Trading + 100$ USD Reward – it’s a great option for a more dedicated crypto experience.
Let’s get into the nitty-gritty and make sure you’re confident in managing your crypto on Robinhood!
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The Basics of Cashing Out Crypto on Robinhood
before we dive into the step-by-step, let’s get a clearer picture of how Robinhood works with crypto. For a while, if you bought crypto on Robinhood, it pretty much stayed there. You couldn’t send your Bitcoin or Ethereum to an external wallet like you might with other dedicated crypto exchanges. But things have changed! Robinhood now offers crypto wallet features for supported assets, which is a big deal. This means you have two main pathways to “cash out” or move your crypto.
Understanding Robinhood’s Crypto Model
When you “own” crypto on Robinhood, for a long time, it was more like owning the value of the crypto rather than having direct custody of the coins themselves. This model meant you couldn’t just send your Bitcoin to a friend’s wallet or move it to a hardware wallet for safekeeping. You had to sell it for US dollars first.
However, the game changed when Robinhood introduced its crypto wallet. Now, for certain cryptocurrencies, you can transfer them directly to external wallet addresses. This gives you more control over your digital assets. So, when people say “how to cash out crypto in Robinhood,” they often mean converting it to fiat currency, but it’s important to know you might also have the option to move the actual crypto.
For most people looking to “cash out,” the goal is usually to get US dollars into their bank account. This typically involves a two-step process:
- Selling your cryptocurrency within the Robinhood app.
- Withdrawing the resulting cash from your Robinhood account to your linked bank account.
Let’s walk through these steps so you know exactly what to do. How to check new cryptocurrency
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Step-by-Step Guide: Selling Your Crypto on Robinhood
Ready to turn that digital gold into something you can use? Selling your crypto on Robinhood is pretty straightforward, whether you’re using the mobile app or the desktop version.
Step 1: Open Your Robinhood App and Navigate to Crypto
First things first, fire up your Robinhood app on your phone or head over to the website on your computer.
- On Mobile: Look for the little person icon your account and then find the crypto section. Sometimes it’s right on your homepage, or you might see a “Crypto” tab or section if you scroll down a bit.
- On Desktop: You’ll usually find your crypto holdings under your main account or portfolio.
Step 2: Select the Cryptocurrency You Want to Sell
Once you’re in your crypto section, you’ll see a list of the digital currencies you currently hold. Tap or click on the specific cryptocurrency you want to sell – maybe it’s Bitcoin, Ethereum, or Dogecoin. You’ll go to that crypto’s detail page.
Step 3: Initiate the Sell Order
On the cryptocurrency’s detail page, you’ll usually see options like “Buy” and “Sell.” Go ahead and tap or click the “Sell” button. How does a commercial ice cream machine work
- Enter the Amount: You’ll then decide how much crypto you want to sell. You can either enter a specific amount in US dollars e.g., “$50” or a specific amount of the cryptocurrency itself e.g., “0.0005 BTC”. Robinhood will show you the conversion automatically.
- Choose Order Type Optional but Good to Know: Robinhood usually defaults to a “Market Order,” meaning your crypto will sell at the best available price right now. If you’re a bit more advanced, you can sometimes choose other order types like a “Limit Order” to sell at a specific price or higher by looking for an “Order Types” option.
Step 4: Review and Confirm Your Sale
Before you finalize anything, Robinhood will show you a review screen with all the details: the amount of crypto you’re selling, the estimated price, and the total value of the sale.
- Double-check everything. Make sure it all looks correct.
- Confirm: If you’re happy with the details, confirm the order. On the mobile app, this often means swiping up to submit the order.
What Happens Next?
Once your sell order is executed, the cryptocurrency is converted into its equivalent value in US dollars. This cash is then added to your available balance in your Robinhood account. Robinhood is known for commission-free trading, so you won’t typically see a direct “commission” fee for selling. However, keep in mind that the “spread” the difference between the buy and sell price can act as an indirect cost.
Now that you have cash in your Robinhood account, the next step is to get it into your actual bank account!
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Step-by-Step Guide: Withdrawing Cash to Your Bank Account
After you’ve successfully sold your crypto and the funds are sitting as cash in your Robinhood account, getting that money into your personal bank account is the next logical step. Robinhood makes this pretty straightforward. Ai speaker generator
Step 1: Navigate to Your Account and Transfers Section
- On Mobile: Tap the person icon the “Account” page in the bottom right corner of the app. Then, look for the three-bar menu icon or sometimes just “Transfers” to open up more options. Select “Transfers.”
- On Desktop: Head to the “Account” tab, then select “Transfer” and “Transfer Money.”
Step 2: Initiate a Withdrawal
Within the “Transfers” section, you’ll see an option like “Withdraw” or “Transfer to Your Bank.” Tap or click on that.
Step 3: Enter the Amount and Choose Your Bank Account
- Enter the amount: Type in how much money you want to withdraw from your Robinhood account.
- Select your bank: Choose the linked bank account or debit card where you want the funds to go. If you haven’t linked a bank account yet, you’ll need to do that first. It’s a quick process that usually involves entering your bank login credentials or account and routing numbers.
Step 4: Choose Your Transfer Method Standard vs. Instant
Robinhood usually gives you a couple of options for getting your cash:
- Standard ACH Transfer: This is usually free and is the most common way to withdraw. However, it can take anywhere from 3 to 5 business days for the funds to fully settle in your bank account.
- Instant Withdrawal: If you need the money quicker, Robinhood might offer an instant transfer option to a linked debit card or bank account. This is usually much faster, sometimes even within minutes, but it typically comes with a fee of about 1.75% with a minimum of $1 and a maximum of $150 per transaction.
Step 5: Review and Confirm
Just like selling your crypto, you’ll get a chance to review all the withdrawal details. This includes the amount, the destination bank account, and any potential fees especially if you choose instant transfer.
- Double-check everything one last time. An incorrect bank account number could cause significant delays or issues.
- Confirm the transfer.
Important Notes on Withdrawals:
- Settlement Times: If you just sold crypto, the cash might need to “settle” in your Robinhood account for a couple of business days before it’s fully withdrawable, especially if you used instant buying power.
- Withdrawal Limits: Robinhood has daily withdrawal limits. Typically, you can withdraw up to $50,000 per business day to a linked bank account via standard ACH. Instant transfers might have lower daily limits, sometimes around $5,000. You can usually find your specific limits within the app under “Transfer limits.”
- Account Verification: Make sure your Robinhood account is fully verified with identity checks and two-factor authentication 2FA. This is usually required for withdrawals and helps keep your funds secure.
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Important Considerations Before You Cash Out
Cashing out your crypto isn’t just about clicking a few buttons. there are a few important things you should keep in mind to avoid surprises. Let’s talk about taxes, market movements, and how Robinhood handles crypto. Free joker ai voice generator
Taxes: Don’t Forget Uncle Sam!
This is a big one. Any time you sell cryptocurrency for fiat currency like USD, or even trade one crypto for another, it’s generally considered a taxable event. What does that mean? Well, if you sold your crypto for more than you originally paid for it, you’ve got a capital gain, and you’ll likely owe taxes on that profit. If you sold it for less, you have a capital loss, which can sometimes be used to offset other gains.
- Short-term vs. Long-term: The amount of tax you’ll pay depends on how long you held the crypto.
- If you held it for less than one year, it’s usually a “short-term capital gain” and taxed at your regular income tax rate.
- If you held it for more than one year, it’s generally a “long-term capital gain,” which often has more favorable tax rates.
- Robinhood Reports to the IRS: Yes, Robinhood does report your crypto transactions to the IRS. If you sell crypto or receive rewards exceeding $600 in a year, Robinhood will issue you a Form 1099 specifically Form 1099-B for capital gains/losses and sometimes 1099-MISC for rewards. So, it’s super important to accurately report your crypto activity when you file your taxes to avoid any issues.
Disclaimer: I’m not a tax advisor, so this isn’t tax advice! It’s always a good idea to consult with a qualified tax professional to understand your specific obligations and how crypto sales impact your personal tax situation.
Market Volatility: Timing is Everything Sometimes
Crypto markets are known for their wild price swings, right? So, when you decide to cash out, the price you get for your Bitcoin or Ethereum might be different from what you saw just a few minutes or hours ago. This market volatility means that the value of your assets can change quickly between when you decide to sell and when the order actually executes. Always be aware of the current market conditions when you’re making a sell order.
Robinhood’s Evolution: From Locked Up to Free Flowing Mostly
In the past, one of the biggest complaints about Robinhood Crypto was that you couldn’t move your actual cryptocurrencies off the platform. You were essentially buying and selling the idea of crypto, not the crypto itself. If you wanted to “cash out” in any way, selling for USD and withdrawing to your bank was the only route.
Good news! Robinhood has significantly improved here. They now offer their own Robinhood Wallet, which allows you to transfer supported cryptocurrencies to external wallet addresses. This means you can finally take direct custody of your digital assets or move them to another exchange if you prefer. Are Massage Chairs Bad For You? The Real Deal on Relaxation and Risks
This is a must for many users, as it means you’re no longer stuck with just selling to cash. However, keep in mind that not all cryptocurrencies might be supported for direct external transfers, and you’ll usually need to complete identity verification KYC and enable two-factor authentication 2FA before this feature is fully available to you. Also, there can be a review period of up to five business days before transfers are enabled.
Fees and Limits: What You Need to Know
While Robinhood famously boasts commission-free crypto trading, there are still a few things to keep in mind regarding costs and limits:
- Selling Crypto: Robinhood doesn’t charge a direct commission for buying or selling crypto. However, they do make money on the “spread,” which is the small difference between the price you buy at and the price you sell at.
- Crypto Transfers to external wallets: Robinhood itself doesn’t charge fees for sending or receiving crypto to or from an external wallet. That’s awesome! However, you will still pay the standard network fees sometimes called miner fees or gas fees that are inherent to the blockchain itself. These fees vary depending on the cryptocurrency and how busy its network is. Robinhood will show you an estimate of this network fee before you confirm the transfer.
- Cash Withdrawals to Bank:
- Standard ACH transfers to your linked bank account are free.
- Instant withdrawals to a debit card or bank account typically incur a 1.75% fee minimum $1, maximum $150.
- Withdrawal Limits: As we covered, there’s a daily withdrawal limit of up to $50,000 for standard ACH transfers to a bank account. Instant transfers have varying, often lower, daily limits.
- Crypto Transfer Limits: If you’re sending crypto to an external wallet, Robinhood currently has limits of approximately $5,000 worth of crypto per day, or up to 10 transfers in a 24-hour window.
Understanding these nuances helps you plan your transactions efficiently and avoid any unexpected surprises.
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Transferring Crypto to an External Wallet Beyond Cashing Out to Fiat
While “cashing out” usually means converting crypto to fiat, it’s super important to highlight that Robinhood has evolved! You can now actually move certain cryptocurrencies directly to an external wallet. This is fantastic if you want to take full control of your assets, use them on other platforms, or simply store them in a hardware wallet for long-term security. How to Mine in CryptoTab Browser: Your Ultimate Guide to Browser-Based Crypto
Which Cryptocurrencies Can You Transfer Out?
Robinhood Wallet supports transfers for several major cryptocurrencies. You can typically send crypto like Bitcoin BTC, Ethereum ETH, Solana SOL, Dogecoin DOGE, Arbitrum ARB, Polygon MATIC, Optimism OP, and Base. XRP is also noted as being withdrawable. Always double-check Robinhood’s current list of supported assets for transfers, as it can change.
Step-by-Step Guide: Moving Your Crypto to an External Wallet
The process for transferring crypto out of Robinhood is quite similar across different cryptocurrencies:
- Verify Your Account: Before you can transfer crypto, you absolutely need to have your identity verified KYC and two-factor authentication 2FA set up on your Robinhood account. This helps keep your assets secure. Be prepared for a possible review period of up to five business days for these features to be fully enabled.
- Go to the Crypto’s Detail Page: Open your Robinhood app or website and navigate to the specific cryptocurrency you want to send.
- Select “Send” or “Withdraw”: On the crypto’s detail page, you’ll see a “Send” button or sometimes “Withdraw”. Tap or click this.
- Enter the Amount: Specify how much of that cryptocurrency you want to send.
- Paste the Wallet Address: This is arguably the most critical step!
- Go to your external crypto wallet e.g., MetaMask for Ethereum, a hardware wallet for Bitcoin, another exchange like Binance.
- Copy the receiving address for the exact same cryptocurrency and network. For instance, if you’re sending Ethereum, make sure you copy an Ethereum ERC-20 address. If it’s Bitcoin, use a Bitcoin address. Sending to the wrong address or network means you’ll likely lose your funds forever, and crypto transactions are irreversible.
- Paste this address into the designated field in the Robinhood app.
- Review the Details: Robinhood will show you a review screen. This is your last chance to check everything: the amount, the destination address, and any network fees.
- Submit the Transaction: If everything looks correct, confirm the transfer. Robinhood will then send the crypto to the blockchain for processing.
Specific Crypto Assets: Bitcoin, Ethereum, and XRP
The process outlined above generally applies to most supported cryptocurrencies on Robinhood.
- How to Cash Out Bitcoin in Robinhood: Whether you want to sell your Bitcoin for cash or transfer it to an external wallet, the steps are the same as described above. You select BTC, choose to sell or send, and follow the prompts.
- How to Cash Out Ethereum on Robinhood: Similar to Bitcoin, you’d navigate to your ETH, decide if you’re selling for USD or sending to another wallet, and proceed.
- How to Cash Out XRP on Robinhood: Robinhood supports XRP, and you can sell it for cash or send it to an external wallet following the same general steps. Just remember to use a compatible XRP wallet address if you’re transferring.
Remember, if you’re transferring to an external wallet, Robinhood doesn’t charge a platform fee, but you will pay the blockchain’s network fee.
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Exploring Alternatives to Robinhood for Crypto
While Robinhood has made big strides with its crypto wallet and transfer capabilities, it’s true that some platforms offer a broader range of features, more advanced trading tools, or simply a different user experience from the get-go. If you’ve been using Robinhood and are curious about other options for trading and managing your digital assets, it’s worth exploring.
Many dedicated cryptocurrency exchanges provide more extensive options for buying, selling, staking, and even earning on your crypto, along with typically more robust withdrawal options to external wallets. For instance, platforms like Binance offer a comprehensive ecosystem for crypto enthusiasts, often with competitive fees and a vast selection of coins. If you’re looking to dive deeper into the crypto space and explore a platform with a wide array of trading features and the chance to earn some rewards, you might find something like 👉 Easy Trading + 100$ USD Reward a beneficial option to expand your crypto journey beyond Robinhood’s offerings.
Always do your own research to find a platform that aligns with your specific needs, whether that’s low fees, a wide selection of cryptocurrencies, advanced trading tools, or robust security features.
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Frequently Asked Questions
How long does it take to withdraw money from Robinhood to a bank account?
Standard withdrawals from Robinhood to a linked bank account via ACH typically take 3 to 5 business days to process and for the funds to appear in your bank account. If you opt for an instant withdrawal to a debit card or bank account, it can be much faster, sometimes within minutes, but it usually incurs a 1.75% fee. How to add favorite coin in binance
Can you withdraw crypto directly from Robinhood to an external wallet?
Yes, you can! Robinhood now offers crypto wallet features that allow you to transfer supported cryptocurrencies like Bitcoin, Ethereum, Solana, and Dogecoin to external wallet addresses. You’ll need to complete identity verification and set up two-factor authentication, and there may be a review period before this feature is fully enabled.
What are the fees for cashing out crypto on Robinhood?
When selling crypto for cash on Robinhood, there are no direct commissions charged by Robinhood itself. However, for cash withdrawals to your bank: standard ACH transfers are free, while instant withdrawals to a debit card or bank account typically incur a 1.75% fee with a minimum of $1 and a maximum of $150. If you transfer crypto to an external wallet, Robinhood doesn’t charge a platform fee, but you will pay the blockchain’s network miner/gas fee.
What are the withdrawal limits on Robinhood?
For cash withdrawals to a linked bank account, Robinhood generally has a daily limit of up to $50,000 per business day for standard ACH transfers. Instant withdrawals often have lower daily limits, which can vary by customer. For crypto transfers to an external wallet, there’s usually a daily limit of approximately $5,000 worth of crypto or up to 10 transfers in a 24-hour window. You can check your specific limits within the Robinhood app under “Transfer limits.”
Do I have to pay taxes when I cash out crypto on Robinhood?
Yes, selling crypto on Robinhood is considered a taxable event by the IRS. If you sell your crypto for a profit, you’ll incur a capital gain, which is subject to taxes. The tax rate depends on how long you held the asset short-term or long-term capital gains. Robinhood reports your crypto transactions to the IRS and will issue you Form 1099-B for capital gains and losses if you meet certain thresholds. It’s crucial to consult a tax professional for personalized advice.
Can I cash out XRP on Robinhood?
Yes, you can cash out XRP on Robinhood. You have two main options: you can sell your XRP for USD directly within the Robinhood app and then withdraw that cash to your bank account, or you can transfer your XRP to an external crypto wallet if you prefer to hold it elsewhere or use another platform for conversion. The process is similar to cashing out other supported cryptocurrencies. Best ai voiceover for youtube reddit
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