In this article, I will show you how you can cash out your Dogecoin on Robinhood. I will walk through how to sell your dogecoin and the steps you need to follow to withdraw your money.
What I mean by “Cash out”
In the context of trading cryptocurrencies like Dogecoin, to “cash out” typically means to sell your digital assets for fiat currency, such as U.S. dollars, and then transfer the funds to your bank account or another payment method. This allows you to convert your cryptocurrency investment back into traditional currency, which can then be used for everyday spending or further investments.
Essentially, it’s the process of liquidating your cryptocurrency holdings and receiving real-world money in exchange.
So here is what you need to do.
Stage 1: Sell your Dogecoin (Duh!)
To get cash for your Dogecoin you first need to sell it. To do this open the Robinhood app and scroll down on the home page.
Step 1: Go to your Dogecoin balance
Search for the cryptocurrency section and click where it says “DOGE”.
Step 2: Select “Sell”
Once you click on the Dogecoin ticker where it says cryptocurrencies and it will pull up the buy/sell option
Next, click the “sell” button.
Step 3: Decide how much you want to sell
Next, you need to input how much Dogecoin you want to sell. If you want to sell all your Doge then just click where it says “Sell All Doge”.
Now pay attention here.
Step 4: Decide on the order type
See how in the top corner it says market order? This means the trade will execute at whatever the best price is currently available in the market. For a highly liquid asset like Dogecoin, this is probably an ok option.
However, if you want to make sure that your order does not exceed a certain price bottom then you need to select the limit order from the dropdown. There, you will input the lowest price you are willing to accept for your Doge.
Because the crypto market is extremely volatile, the price of DOGE could change between the time you click on the sell button and the time the order actually goes through on Robinhood’s marketplace. Setting a limit order has got you covered because the sale won’t go through unless the price is at or above your limit price.
On the flip side, setting a limit order might mean that all or part of your transaction does not go through if it can’t meet the price limit that you have set. Market orders are good enough for Robinhood users who are not active traders.
Step 5: Submit your order
Once you have entered the amount that you want to sell swipe up to submit your order.
Your screen will show that it is sending the order.
Step 6: Review your order
Once the sale goes through you will get a notification that your trade has been executed. You can click on the order details to see what you just did or you can go back to the home page by clicking DONE.
Stage 2: Cash out to a bank account
Ok, now that you have sold your Dogecoin, your precious dollars are sitting on Robinhood. To wire them to our bank account is pretty easy.
If you prefer to watch a video this guy offers a quick explanation. Alternatively, I have listed the steps with screenshots below.
Step 1: Navigate to your account profile
To do this, click on the little person icon in the bottom right.
Step 2: Select the “transfer to your bank” option
Click where it says “Transfer to Your Bank”. The other two options are about bringing money into Robinhood. You want to select the second option.
Step 3: Enter the amount you want to transfer
Underneath the input field, it shows you the amount available. On the right-hand side, you can check which bank account you want to send the money to in case you have more than one account linked to Robinhood. If you have instant transfers enabled you can also move your money to a debit card. More on ways to cash out further down.
Step 4: Click on review and then submit
Once you hit submit it will take a couple of days or so for the money to come to your bank account
3 Ways to Withdraw Funds via Robinhood
There are 3 ways to cash out
1. Withdraw funds to a bank account
The first is to send the cash to your bank account as I just showed you above. This is one of the easiest ways to cash out your Doge. The transfer to your bank account can take up to 5 business days but there are no withdrawal fees.
2. Cash out to your debit card
If you have linked your debit card to Robinhood then you can cash out straight to your debit card. This is called an instant transfer and incurs a 1.5% fee (ouch!). If you choose this method then the cash is with you within 10 minutes provided your Debit card is from one of the banks listed here. Those are banks that are eligible for real-time payments.
Here is how you can link your debit card to Robinhood:
- Go to your account.
- Select the “Transfers” option from the menu.
- Click on “Linked accounts”.
- Choose “Add account”.
- Select “Debit card”.
- Enter the necessary card information.
- Tap “Link card”.
3. Convert Dogecoin to fiat using a Robinhood cash card
If you are going to be cashing out Dogecoin frequently then it may make sense to order yourself a Robinhood cash card. This is a prepaid card that allows you to spend directly from the cash available on your Robinhood account. And there are no transfer fees. Actually, there are no fees full stop. The card is offered in partnership with Sutton bank and you can find more details here.
Please keep in mind that Robinhood is not a member of FINRA which means your assets are not FDIC insured. And while your non-crypto assets are covered by SIPC up to $500,000 your crypto assets are not. Hence, you probably don’t want to manage all your life’s savings via Robinhood.
What You Need to Consider Before Cashing Out Dogecoin on Robinhood
When deciding to cash out your Dogecoin on Robinhood, there are several important factors to keep in mind.
1. Cashing out your Doge has tax implications
First and foremost, it’s important to understand the capital gains tax implications of selling your Dogecoin. When you sell an asset like cryptocurrency, you may be required to pay capital gains taxes on any profits you have made. The amount of tax you’ll owe will depend on how long you have held your Dogecoin and your income level, among other factors.
For more on that read my article on capital gains taxes:
By carefully tracking your crypto gains and losses, you can avoid the risk of facing inaccurate tax returns and penalties. To understand how to determine your tax obligations read my detailed guide on how to calculate your crypto gains and losses.
Another important consideration when cashing out Dogecoin on Robinhood is its volatility. Dogecoin is known for its sharp price fluctuations, which can happen suddenly and without warning. This can have a significant impact on the value of your holdings and, in turn, on the amount of money you’ll receive when cashing out. It’s important to keep a close eye on the market and make sure you’re comfortable with the level of risk involved in cashing out at any given time.
3. Cashing out at the right time
Finally, determining the best time to cash out your Dogecoin will depend on a variety of factors, such as your financial goals and risk tolerance. Some investors may choose to cash out at the first sign of a decent profit, while others may hold out for larger gains over the long term. Additionally, it may be a good idea to have a specific price or dollar amount in mind for cashing out, as this can serve as a good benchmark for making decisions about when to sell.
Alternatives to Cashing Out Dogecoin on Robinhood
Option 1. Move your Dogecoin to another address
If you are cashing out to buy other coins on another crypto trading app, there is an easier way to move and sell your Dogecoin.
Since February 2021, Robinhood lets you send your Dogecoin to any crypto address you want. If you don’t know what a crypto address is then check out my detailed guide here.
In a nutshell, it means you can send your Dogecoin to a crypto wallet or to a cryptocurrency exchange. From the exchange, you can convert your Dogecoin into a stablecoin like USDT or USDC. Then you can buy any cryptocurrency you want using your stablecoins. The reason you might want to do this is that Robinhood does not support all cryptocurrencies just yet. Here is what they have on offer currently:
Coins available on Robinhood
|Bitcoin Cash (BCH)|
|Ethereum Classic (ETC)|
|Shiba Inu (SHIB)*|
|Stellar Lumens (XLM)*|
*Not available for trading in New York **Not available for trading in New York or Texas. Source: Robinhood.com.
Robinhood’s fees and restrictions for Dogecoin withdrawals
In line with its ethos of offering commission-free trading, Robinhood does not charge you for moving your crypto out or into the Robinhood wallet. This is not true of all wallets. For example, Coinbase’s wallet charges a cheeky 1% if you move crypto into and out of its wallet. Keep in mind, however, that you will incur some transfer fees that are charged by the crypto network. Robinhood uses the Ethereum and Polygon networks. Ethereum can be sizeable while Polygon’s fees are insignificant.
How to move your Dogecoin to Robinhood wallet
Step 1: Set up your Robinhood wallet.
- Click “Create a new wallet”.
- Choose “Use Face ID/Touch ID” or “Create a custom PIN” to secure your wallet.
- Decide whether to “Back it up to iCloud”, “Back it up manually”, or “Skip to back it up later”.
- You will also need to set up two-factor authentication by Downloading Google’s authenticator app.
- Go to the Robinhood home page and click on the menu.
- Choose “Transfer from Robinhood”.
- Select the token you want to transfer and the network you want to use. For Dogecoin you want to use Ethereum since Doge is an ERC-20 coin that resides on Ethereum.
- Enter the amount you want to transfer.
- Click “Review” and then “Submit”.
- Enter the one-time code from your 2-factor authentication app. For example Google Authenticator.
- Finally, click “Return to Robinhood Wallet”.
Voila! You are all set up. If you want there is a separate mobile app that hosts your Robinhood wallet only.
Pros and Cons of having a Robinhood wallet
Your Dogecoin is now in your Robinhood wallet. What this means is that the Dogecoin is in your custody. You have the private keys to your wallet and no one can mess with it. Imagine this as your Dogecoin coming off the Robinhood brokerage account and being money in your pocket. You can now decide what to do with it.
At the same time, however, you can just sell your Dogecoin like before. You don’t need to do any convoluted steps and move Dogecoin out of your wallet to cash out. Robinhood does this automatically in the backend.
The disadvantage of this is that you are fully responsible for what happens to your crypto. If someone finds or hacks your private keys (if you store them online) then you could lose all your dogecoin and other cryptos.
Also, please keep in mind that the Robinhood crypto wallet is a “hot” wallet. You may have heard of a MetaMask wallet or a Trust wallet which are both very popular.
The problem with hot wallets is that they are hooked up to the internet at all times. And we all know that stuff that is connected to the internet is exposed to the risk of getting hacked. A safer option would be to move your Dogecoin to a cold storage wallet such as a Ledger or Trezor wallet.
How to send your Dogecoin to a different exchange
If you want to send your Dogecoin to a crypto exchange then all you need is a wallet address. Say you decide to send Dogecoin to a centralized exchange like Coinbase or Coinbase Pro. Then all you need to do is enter the Coinbase address and hey presto you are done. Robinhood has detailed instructions.
Option 2. Use your Dogecoin as collateral to get a loan in cash
One way to potentially access cash without selling your Dogecoin is by using it as collateral to obtain a loan. Many cryptocurrency exchanges and mobile apps now offer loan options where you can put up your Dogecoin as collateral in exchange for a cash loan. These loans are typically secured against the value of your Dogecoin holdings, which means that the lender will hold onto your Dogecoin until the loan is repaid.
One potential benefit of this approach is that you can access cash without having to sell your Dogecoin and potentially miss out on future gains. Additionally, you may be able to secure a lower interest rate compared to other types of loans, since the collateral reduces the lender’s risk.
However, it’s important to keep in mind that this approach carries a lot of risk. If the value of your Dogecoin holdings drops significantly, you may be required to provide additional collateral or risk having your assets sold by the lender. Additionally, you will need to repay the loan with interest, which could further impact your overall returns.
Here are the top providers from whom you can borrow with Dogecoin as collateral:
All of the above options are centralized. Centralized lenders tend to blow up from time to time like Celsius Finance and BlockFi did in the past. The other alternative is to borrow from a DeFi platform such as Compound, MakerDAO, or Aave. But to do this you need to convert your Dogecoin into another crypto asset because these platforms don’t accept Dogecoin.
Dogecoin is a meme coin that was created in 2013 as a joke by software engineers Billy Markus and Jackson Palmer. Its mascot is a Shiba Inu dog from a popular internet meme, which gives the coin a lighthearted and whimsical image.
While initially created as a parody of Bitcoin, Dogecoin has since become a popular digital currency with a market capitalization in the billions. Dogecoin has become a serious investment for many people and is known for its wild price swings and strong community following.
Dogecoin’s success is a testament to the power of memes and the unpredictable world of crypto investing. It is also heavily sponsored by Elon Musk whose tweets and mentions of Doge heavily influence its price.
Dogecoin’s market cap is worth about $9Bn but reached an all-time high of almost $90Bn in May 2021!!!
Here is my most-read article on Dogecoin.
The rise of Dogecoin has been anything but conventional. But can Dogecoin reach $100? In this article, I am going to fully explore this angle and break the numbers down. Read more.
In this article, I will walk you through how to buy Dogecoin and everything you need so as to be set up correctly. Read more.
In this article, I will guide you through the step-by-step process of buying Dogecoin on Robinhood. I will tell you all the questions Robinhood will ask you throughout the process and what you need to do. I will also tell you all the dimensions you need to think of before buying Dogecoin on Robinhood. Read more.
Why can't i withdraw DOGE from Robinhood?
To withdraw Doge from Robinhood you need to make sure you send your Doge to a supported address type. For Dogecoin the supported address types start with "D". You also need to make sure you select the correct network. Dogecoin is an ERC-20 coin so you need to select the Ethereum network to make the withdrawal.
Is it bad to hold crypto on Robinhood?
Holding crypto on Robinhood is not protected by FDIC insurance. Furthermore, the legal entity behind Robinhood's wallet is located in the Cayman Islands. This means that if something goes wrong you are not going to get your crypto back. The Robinhood wallet is non-custodial. This means that you are responsible for your private keys and passwords. If someone steals these there is no legal recourse to gaining your Dogecoin and other assets back.
When I sell crypto on Robinhood Where is my money?
When you click the Sell and submit button the money sits in Robinhood's bank account. You can see this under your account information. To move the money to your account you need to make a wire or debit card transfer.
Is Robinhood holding DOGE
Yes, Robinhood is said to hold about 30% of the total supply of Dogecoin on behalf of its customers. This goes to show how popular Dogecoin is with retail investors.
Can I transfer my Dogecoin from Robinhood to Coinbase?
Yes, to transfer Dogecoin from Robinhood to Coinbase follow these steps. 1. Open your Coinbase app and select the option to deposit using the Ethereum Network. 2. Copy the deposit address or scan the QR code 3. Open your Robinhood app 4) In the "send" address field paste the Coinbase address. 5) Hit "Send". The fund should appear in your Coinbase within the next 30 minutes.
How do I transfer my DOGE from Robinhood to Binance?
To transfer Dogecoin from Robinhood to Binance, you can follow these steps:
1. Open your Binance account and go to the "Deposit" section for Dogecoin.
2. Copy the deposit address provided by Binance.
3. Open your Robinhood app and go to your Dogecoin holdings.
4. Select "Send" and paste the Binance deposit address.
5. Enter the amount of Dogecoin you want to transfer and confirm the transaction.
The transfer should be completed within the next 30 minutes, and the Dogecoin should appear in your Binance account.
Is Dogecoin on Robinhood safe?
So far none of Robinhood's wallets have been hacked. Robinhood's online wallets are non-custodial which means that you are responsible for keeping the key phrase to your account a secret. The most secure way to store these is to keep them offline. There is always the risk that someone hacks your wallet's private keys if you store them online. Having said that none of the crypto on Robinhood or its wallets is insured. So if you lose your keys or crypto assets there is nothing you can do.