Robinhood crypto wallet Review (Overview)
Updated: Jul 12, 2022
Here is an overview of how the Robinhood crypto wallet looks, how it works, and test buying $100 dollars worth of bitcoin, then transferring it from Robinhood to Coinbase to see how easy the process is and if they charge any fees.
Initially, you could buy cryptos in Robinhood for commission free, but you would not trade outside Robinhood since you were not receiving the actually cryptos. There's a saying in crypto, 'not your wallet, not your crypto'.
Luckily that has changed. You can now buy cryptos in Robinhood for commission-free and then transfer to other external wallets, crypto exchanges, and crypto apps with companies that earn interest with the cryptos.
How it works
First, open your Robinhood app and go to your crypto page. Eleven different coins that you could buy on Robinhood will appear. You will notice that Robinhood has added new coins on the list as previously, there were only seven coins. Robinhood is continuing to add new coins.
Click on Bitcoin to see the send and receive buttons that significantly impact how you could send and receive cryptos. For this test, we bought $100 dollars worth of Bitcoin on Robinhood and then sent it to Coinbase. Robinhood has a great new feature that will confirm if the wallet address is the same crypto. Be careful not to select another coin's code because you will lose your money, and you will be unable to restore it.
Fees, Fees, & Fees
Robinhood does not charge an exchange fee like the other competitors out there. For example, Coinbase charges $3.84 dollars and $0.59 dollars on Coinbase pro.
However, you will be charged a network fee, which is charged depending on the type of coin bought and the number of transactions at the time you are buying the cryptocurrency. The network fee will always need to be charged. It is different than the exchange fee (fee when purchasing or selling crypto on the exchange).
A fee is charged in transferring any cryptocurrency to another wallet, and the actual cryptocurrency collects the fee. The fee is standard and hence not collected by Robinhood. Sometimes the fee could be minor.
Other Important Points
Some other points to be aware of with Robhinhood, such as limits. Robinhood's limits how much you can send; $3000 dollars worth of crypto or do ten other transfers within 24 hours. Cryptocurrencies bought in Robinhood cannot be withdrawn until the charge transactions are settled, and this could take up to 5 days. This only happens when you don't have money already sitting in your account and have to deposit money from your external accounts in order to purchase the crypto on Robinhood.
All in all, Robinhood allowing users to transfer and buy a cryptocurrency for free is an absolute game-changer to the crypto industry. It would be good if other platforms followed suit. Robinhood initially offered commission-free trading, which has completely shifted the stock market platform to follow its lead.
If you prefer to watch the review in video format, please click the video below!