How to Buy Crypto with Robinhood

Summary: Robinhood allows users to buy cryptocurrency without commissions. However, it offers a limited selection of 18 cryptocurrencies, charges high deposit fees, has wide spreads and does not support advanced features like staking.

Kraken is a strong alternative, offering over 250 cryptocurrencies to trade and stake for high yields of up to 30% APY. It is based in San Fransisco, complies with FinCEN regulations and provides free USD deposits.

Top Crypto Platform for Robinhood
Website
Top Crypto Platform for Robinhood
5.0 out of 5.0 by Datawallet

Kraken is the best suited cryptocurrency exchange for Robinhood customers as it provides free and fast USD deposits plus a wide range of over 250 digital assets.

Website
Licenses

Registered with the U.S. Financial Crimes Enforcement Network (FinCEN).

Available Assets

250+ Cryptocurrencies to Trade and Stake (Spot and Margin markets).

Deposit Methods

ACH Transfer, FedWire, Plaid, Credit Card, Debit Card, Zelle and more.

Kraken is a regulated U.S. entity with FinCEN registration and a Special Purpose Depository Institution charter in Wyoming for digital asset-related services.

Can I Buy Bitcoin with Robinhood?

Yes, Robinhood allows users to buy and trade 18 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. Unfortunately, the transaction spreads, and deposit fees are upwards of 2%, making it one of the pricier investment platforms in the country. This is why we recommend using cryptocurrency exchanges in the USA to invest in the asset class. 

How to Buy Crypto with Robinhood Alternative

For those looking for an alternative to Robinhood, Kraken provides a straightforward and low-cost platform for buying cryptocurrencies. Kraken is registered as a Money Services Business with FinCEN under registration No. 31000239561651, making it a highly secure exchange for American investors. It supports over 250 digital assets for trading and staking.

Here’s a quick guide to buying crypto with a Robinhood Alternative:

  1. Account Setup: Go to Kraken’s website and register for a free account by providing your email address and password.
  2. Connect Bank: Visit the deposit section and transfer USD through your preferred payment method.
  3. Crypto Exploration: Access the vast selection of 250 digital currencies available on the platform.
  4. Execute Trade: Input your desired investment amount, select an asset, and confirm your acquisition.
How to Buy Crypto with Robinhood Alternative

What are the Fees?

Trading on Robinhood incurs high costs, making it an expensive choice for investors. Unlike some platforms that impose commissions, it offers “commission-free trades” but takes a $0.45 fee for every $100 traded, which means there is a 0.45% fee. There are also 0.5% - 1.5% deposit fees. This makes it significantly more costly than cryptocurrency exchanges.

For investors seeking tighter spreads and lower fees, Kraken is a strong option. Its maker fees start as low as 0.16% and taker fees start from 0.26%. The exchange presents an affordable alternative to platforms like Coinbase, which may charge fees upwards of 2%. It also facilitates free USD deposit methods through ACH transfers and other payment options.

About Robinhood

‍Robinhood is a popular trading platform offering commission-free trades on stocks, options, and cryptocurrencies. It provides margin trading and research via Robinhood Gold and interest-earning options with Robinhood Cash Management. It simplifies investment management and everyday finances, though it has limited cryptocurrency options compared to digital asset exchanges.

Robinhood Crypto

Bottom Line

In conclusion, Robinhood offers commission-free cryptocurrency trading but has a limited selection of 18 cryptocurrencies, high deposit fees, and wide spreads. For a wider range of assets and features like staking, Kraken is a better option, offering over 250 digital currencies and lower fees. Investors should choose the platform that best suits their needs.