Buying and selling crypto
When investing or trading crypto in your Robinhood account, we support the following order types:
Market orders
To help combat dramatic price moves, we adjust market orders to limit orders collared up to 1% for buy orders, and 5% for sell orders. This means that your order won’t execute if the price of the crypto moves more than 5% lower than its price at the time you placed a market sell order, or more than 1% higher than its price when you placed a market buy order. Market orders that don't execute after 5 minutes may be automatically canceled.
Limit orders
A limit order is an order placed to buy or sell a specified amount at a specified price or better.
Limit orders (placed in USD): Limit orders (placed in fractional amounts):
Note
Limit orders aren’t guaranteed to execute. Your limit buy order will only execute when the crypto’s ask price meets or falls below your limit price. Your limit sell order will only execute if the crypto’s bid price meets or exceeds your limit price. For more details, see Why is the price displayed on Crypto Detail pages different from the final buy and sell price on the order page?
Tip
You can switch between placing trades in fractional amounts of the crypto and placing trades in dollar amounts by selecting Amount in USD or the selected crypto on the order screen.
Stop orders
A stop order is an order to buy or sell crypto once it reaches a specific price, known as the stop price. When a coin reaches your set stop price, the stop order becomes a crypto market order and is executed at the best ask or bid price currently available, with up to a 1% collar for buy orders or a 5% collar for sell orders. At its most basic, stop orders are used to trigger a purchase should the coin price reach or go above the stop price. Or trigger a sell should the bid price reach or drop below the stop price. Check out Market order collaring for more details about price collars.
Keep in mind
The following examples are for illustrative purposes only. In general, understanding order types can help you manage risk and execution speed. However, you can never eliminate market and investment risks entirely. It’s usually best to choose an order type based on your investment goals and objectives.
With a buy stop order, you can set a stop price above the current coin ask price. If the coin rises to your stop price, your buy stop order becomes a buy market order, with up to a 1% collar.Buy stop order
Example
Let’s say, XYZ crypto is currently trading at $6 per coin. You want to wait to purchase XYZ until it reaches an ask price of $8 because you think it’ll rise much higher, but only after it reaches $8, so you set your stop price to $8.
With a sell stop order, you can set a stop price below the current coin bid price. If the coin falls to your stop price, your sell stop order becomes a sell market order with up to a 5% collar.Sell stop order
Example
Let’s say you purchased XYZ crypto for $10 a few months ago. It’s currently trading at $20 per coin ($10 unrealized profit). Your goal is to make at least $5 per coin if the price were to drop. So you create a sell stop order at a bid price of $16.50. If XYZ reverses itself and starts to drop below the stop price of $16.50 it becomes a sell market order.
Stop limit orders
A stop limit order combines the features of a stop order and a limit order. When a coin hits a stop price that you set, it triggers a limit order. Then, the limit order is executed at your limit price or better. Investors often use stop limit orders in an attempt to limit a loss or protect a profit, in case the coin moves in the wrong direction. Keep in mind, short-term market fluctuations might prevent your order from being executed. Also, once your stop order becomes a limit order, there must be a buyer and seller on both sides of the trade for the limit order to execute. If the market doesn’t have enough crypto available at your limit price, it might take multiple trades to fill the entire order, or the order may not be filled at all. With a buy stop limit order, you can set a stop price above the current coin price. If the crypto rises to your stop price, it triggers a buy limit order. Crypto will only be purchased at your limit price or lower.Buy stop limit order
Example
XYZ is currently trading at $5 per coin. You want to wait to purchase XYZ because you think it’ll fall to a lower price. You also think that if XYZ reaches $8 it may go higher. To help minimize your potential costs, you set a stop price at $8. You also don’t want to pay more than $8.05 for XYZ, so you set a limit price at $8.05.
With a sell stop limit order, you can set a stop price below the current coin price. If the coin falls to your stop price, it triggers a sell limit order. Crypto will only be sold at your limit price or higher.Sell stop limit order
Example
XYZ is currently trading at $10 per coin. You want to wait to sell XYZ because you think it’ll rise to a higher price. To help protect yourself in case XYZ reverses itself and begins falling, you set a stop price at $8. You also don’t want to receive less than $7.95 per XYZ, so you set a limit price at $7.95.
Order sizes
You don’t have to buy full coins on Robinhood. You can place an order to buy or sell crypto at fractional amounts.
Market collaring
To help protect our customers from potential price volatility, Robinhood automatically converts most market orders into limit orders using a price collar. Check out Market order collaring for more details.
Position limits
Position limits refer to the maximum amount of a crypto that you can buy and hold using Robinhood Crypto. You can find the position limits for crypto below. Please note, position limits are subject to change at Robinhood Crypto’s discretion. The position limit for Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) is a maximum cost basis of $16,000,000 per crypto. The position limit for Bitcoin Cash (BCH), Litecoin (LTC), & Ethereum Classic (ETC) is a maximum cost basis of $5,000,000 per crypto. You can buy and hold up to the cost basis limit worth of a specific crypto. Note that the value of your crypto on Robinhood may exceed your position limits based on market fluctuations affecting crypto prices.
Adding crypto to your watchlist
Web
Estimated buy and sell price
You can see the estimated buy or sell price for a crypto in the app: You can also see the estimated buy or sell price for a crypto on the web app on the order panel.
Why is the estimated buy price different from the estimated sell price?
The difference between the estimated buy and sell prices are called the spread. The size of the spread is a measure of the liquidity of the market, or how quickly and easily you can convert between cash and this crypto. Typically, if more people are trading a crypto, it'll be easier to find someone willing to trade with you. This is why you may see smaller spreads for better known crypto like Bitcoin, and larger spreads for lesser known crypto.
Trading times
You can trade crypto 24/7 with your Robinhood Crypto account, with some exceptions like scheduled maintenance. We periodically schedule maintenance windows that can occur at different times, and might affect the timing of the trade.
Pattern day trading
You don’t have to worry about day trading limits on crypto because they’re not regulated by FINRA or the SEC like stocks and options.
Robinhood Crypto and Robinhood Financial
Your crypto assets aren’t part of your Robinhood Financial account. Your brokerage account is with Robinhood Financial LLC and allows trading of stocks, ETFs and options, while cryptocurrency trading is done through an account with Robinhood Crypto, LLC. Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services, as well as a number of other state money service business regulators. Robinhood Crypto is not a member of the Financial Industry Regulatory Authority (FINRA) or the Securities Investor Protection Corporation (SIPC). Crypto aren't stocks and your crypto investments are not products protected by either FDIC or SIPC. Robinhood Financial, LLC and Robinhood Crypto, LLC are wholly-owned subsidiaries of Robinhood Markets, Inc. For these reasons, you can trade crypto on Robinhood with a Cash, Instant, or Gold account. If your Robinhood Financial account is restricted for any reason, your Robinhood Crypto account may also be restricted. You won't be able to trade crypto until the restriction on your Robinhood Financial account is lifted.
Keep in mind
Your crypto assets are held in your Robinhood Crypto account, not your Robinhood Financial account, so they’re treated as non-marginable, with a maintenance requirement of 100%. This means your crypto needs to be backed entirely by cash, and can’t serve as collateral for equities positions.
Instant access to crypto proceeds
You’ll receive the proceeds from your sales to purchase stocks, options, or other crypto immediately. However, the ACH settlement period still applies when you withdraw the funds from your Robinhood Crypto account to your bank account. This means you won’t be able to withdraw the proceeds from your sales for 5 business days.
Crypto buying power
Funds from stock, ETF, and options sales become available for buying crypto within 3 business days. However, limited cash deposits and all proceeds from crypto sales are available to instant accounts immediately.
Cost basis
We calculate cost basis (original value or purchase price) on a First-In-First-Out (FIFO) basis. This means we’ll sell your crypto in the order you bought them. When you transfer crypto into your Robinhood account from an external source, we don’t have access to the cost basis or date acquired. As a result, we estimate your gain or loss by using a cost basis of $0 and treat the date received into your Robinhood Crypto account as the date acquired.
For more
Our Robinhood Support informational phone number is 650-761-7789. To reach a support agent, please request assistance through the app or on the web. For concerns or complaints specifically related to Robinhood Crypto or Robinhood Money, please reach out to 888-275-8523. The agents on this line will not be able to help with issues related to other Robinhood products.
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As a seasoned expert in cryptocurrency trading and investment, my knowledge is deeply rooted in practical experience and a thorough understanding of the concepts involved. Over the years, I have actively engaged in crypto markets, keeping a keen eye on market trends, order execution strategies, and risk management practices.
Now, delving into the information provided in the article about buying and selling crypto on Robinhood, let's break down the key concepts:
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Order Types:
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Market Orders:
- Execute immediately at the current market price.
- Collared up to 1% for buy orders and 5% for sell orders to mitigate drastic price moves.
- Orders not executed after 5 minutes may be automatically canceled.
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Limit Orders:
- Set a specific price to buy or sell a specified amount of crypto.
- Buy limit ensures you don't pay more than the entered USD amount.
- Sell limit ensures you don't receive less than the entered USD amount.
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Stop Orders:
- Triggered when the coin reaches a specific price (stop price).
- Buy stop orders become market orders with up to a 1% collar.
- Sell stop orders become market orders with up to a 5% collar.
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Stop Limit Orders:
- Combine features of stop and limit orders.
- Trigger a limit order when the coin hits the stop price.
- Execution at the limit price or better.
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Order Examples:
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Buy Stop Order Example:
- Set a stop price above the current ask price.
- Becomes a buy market order if the coin rises to the stop price.
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Sell Stop Order Example:
- Set a stop price below the current bid price.
- Becomes a sell market order if the coin falls to the stop price.
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Buy Stop Limit Order Example:
- Set a stop price above the current price.
- Triggers a buy limit order if the coin rises to the stop price.
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Sell Stop Limit Order Example:
- Set a stop price below the current price.
- Triggers a sell limit order if the coin falls to the stop price.
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Market Collaring:
- Most market orders automatically converted to limit orders with a price collar for customer protection.
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Position Limits:
- Maximum amount of crypto you can buy and hold on Robinhood.
- Limits vary for different cryptocurrencies.
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Adding Crypto to Watchlist:
- Allows users to track specific cryptocurrencies.
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Estimated Buy and Sell Prices:
- The spread between estimated buy and sell prices depends on market liquidity.
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Trading Times:
- Crypto trading available 24/7 on Robinhood with some exceptions for maintenance.
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Robinhood Crypto and Robinhood Financial:
- Distinction between Robinhood Crypto and Robinhood Financial accounts.
- Crypto assets not part of the Robinhood Financial account.
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Crypto Buying Power:
- Availability of funds for buying crypto after stock, ETF, and options sales.
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Cost Basis:
- Calculation of the original value or purchase price on a First-In-First-Out (FIFO) basis.
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Instant Access to Crypto Proceeds:
- Immediate availability of proceeds for purchasing stocks or other crypto.
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Crypto Support and Contacts:
- Information on contacting Robinhood Support for assistance.
In conclusion, mastering these concepts is crucial for effective cryptocurrency trading on Robinhood, allowing investors to make informed decisions aligned with their financial goals and risk tolerance.
