Can I Buy Crypto with Robinhood?

Robinhood allows users to trade cryptocurrency, offering 19 assets like Bitcoin and Ethereum in the USA, and over 40 assets in Europe due to looser regulatory constraints. 

While trades are commission-free, spreads of around 1% can make it a pricier option compared to competitors. The Robinhood Crypto platform also falls short on features like staking and supports fewer coins overall, making it less ideal for serious crypto investors.

How to Buy Crypto with a Robinhood Alternative

If you’re considering alternatives to Robinhood, Kraken is a strong contender. It's a feature-rich platform with over 280 cryptocurrencies and staking options for assets like Ethereum and Solana. Kraken is registered with FinCEN in the United States and licensed as a Virtual Asset Service Provider (VASP) across Europe, ensuring compliance for global users.

Here’s how to get started with Kraken:

1. Create an Account: Sign up on Kraken’s website and complete identity verification.
2. Add Funds: Deposit money via bank transfer, credit/debit card, or other supported payment methods. Kraken accepts USD, EUR, and GBP.
3. Choose a Cryptocurrency: Browse Kraken’s asset list to find the crypto you want to buy.
4. Make Your Purchase: Select your asset, input the amount you want to invest and execute your trade.

Robinhood Crypto Fees

While Robinhood promotes “commission-free” crypto trading, the true costs are reflected in its spread fees and deposit charges.

Crypto trades incur a spread fee ranging from 0.35% to 1%, depending on the asset and liquidity. Additionally, deposits made via bank transfers or debit cards come with fees between 0.5% and 1.5%, adding to the overall expense.

For a regulated alternative, Kraken offers far lower fees, with maker fees starting at 0.16% and taker fees at 0.26%. It also charges zero fees for deposits via bank transfer.

Can I Buy USDT with Robinhood?

No, Robinhood does not offer Tether (USDT) for trading. Instead, it exclusively supports USD Coin (USDC), a stablecoin pegged to the U.S. dollar. 

Robinhood's choice reflects a preference for USDC’s status as a U.S. based stablecoin that operates under the purview of the SEC through Circle, a New York-based entity.

About Robinhood

Robinhood is a U.S. based platform known for commission-free trading in stocks, ETFs, options, and cryptocurrencies. With over 24 million funded accounts and around $152 billion in assets under custody as of late 2024, it has become a key player in retail investing.

The company recently introduced Robinhood Legend, a desktop platform aimed at advanced traders, and has expanded into futures and index options. It also launched operations in the UK and Europe, giving investors access to U.S. markets & digital assets.

Bottom Line

Robinhood is a simple option for casual crypto traders, but its hidden costs and limited features make it less competitive for serious investors. 

For broader asset selection, lower fees, and advanced tools like staking, real crypto platforms like Coinbase or Kraken offer a stronger alternative.