How to Buy Crypto with Robinhood

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. 

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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.

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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.

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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.

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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.