Ah, Dogecoin. The Shiba Inu meme coin that’s taken the crypto market by storm in recent years, capturing the hearts of new investors and Tesla CEO Elon Musk alike. It turns out Robinhood, the popular stock trading app for Gen Z, has evolved into a go-to trading platform for digital assets like Dogecoin. In this article, I will guide you through the process of selling Dogecoin on the Robinhood platform. So, buckle up, and let’s dive in!
Setting up a Robinhood Account
I assume you already have a Robinhood account. If not, creating a brokerage account with Robinhood Financial LLC is quite simple.
To sign up with Robinhood download their app or visit their website and follow the instructions to set up an account.
To fund your Dogecoin trading escapades, you’ll need to link a bank account. Once you have done that you can go ahead and buy yourself some DOGE.
You can read more detailed instructions on how to buy DOGE here.
Steps to Selling Dogecoin on Robinhood
Here are the steps you need to follow to sell your beloved DOGE.
#1. Open the Robinhood app
Begin by opening the Robinhood app on your smartphone or accessing it via your web browser. Robinhood is only available in the United States and the UK.
#2. Find your Dogecoin balance
Scroll down on the home page and look for the cryptocurrency section. Tap or click on the “DOGE” ticker. If you don’t own any DOGE check out my guide on how to buy Dogecoin on Robinhood.
#3. Select “Sell”
After clicking on the Dogecoin ticker, you will see the buy/sell options. Tap or click the “Sell” button to initiate the selling process.
#4. Enter the amount of Dogecoin to sell
Specify how much Dogecoin you want to sell. If you want to sell all your Dogecoin on Robinhood, simply tap or click “Sell All DOGE.”
#5. Choose the order type
By default, the order type is set to “Market Order,” which means your order will execute at the best available price in the market. However, if you want to ensure your order does not fall below a specific price, you can choose “Limit Order” from the dropdown and set a limit price i.e. a minimum price.
#6. Submit your order:
Once you have input the order details, swipe up (on the app) or click “Submit” (on the web) to submit your order.
#7. Review your order
You will receive a notification when your trade has been executed. Click “Order Details” to review your transaction, or press “Done” to return to the home page.
You will now see the dollar amount of your sale in your account.
Market orders vs limits orders
A market order and a limit order are two different types of orders used when buying or selling assets such as stocks or cryptocurrencies.
A market order is executed immediately at the best available price in the market. This type of order prioritizes speed over price, ensuring a quick transaction but with the potential for price fluctuations during execution.
On the other hand, a limit order allows you to set a specific price at which you want to buy or sell an asset. This type of order prioritizes price over speed, ensuring that your transaction will only be executed if the asset reaches your specified price, but it may take longer to complete or may not be executed at all if the price never reaches the limit you set.
How to Transfer Funds after Selling Dogecoin: Show Me the Money!
Now that you’ve sold your precious Dogecoin, it’s time to withdraw your funds. Robinhood lets you transfer money to a linked bank account.
- Access your account profile on Robinhood: Click on the profile icon, which is usually located at the bottom right corner of the app or the top right corner of the website.
- Select “Transfer to Your Bank”: In the profile menu, tap or click the “Transfer to Your Bank” option.
- Enter the transfer amount: Input the amount of money you want to transfer from your Robinhood account to your bank account. Ensure the amount does not exceed your available balance.
- Review and submit the transfer: Double-check your transfer details, including the bank account where the funds will be sent. If everything looks correct, tap or click “Submit” to initiate the transfer.
Please note that the transfer to your bank account may take up to 5 business days, and there are no withdrawal fees associated with this method. Alternatively, you can withdraw instantly to your debit card for a fee or to a Robinhood cash card for free.
Robinhood’s prepaid card is offered in partnership with Sutton Bank. Withdrawals are instant and the card does not cost anything.
You can find out more details on how to cash your your Dogecoin here.
Transaction fees for selling Dogecoin on Robinhood
Just like they don’t charge you for trading stocks or ETFs (exchange-traded funds), Robinhood won’t charge you a transaction fee when you sell. The reason they are able to offer commission-free trading is that they place your order with market makers who compensate Robinhood for the order flow.
Additional Considerations for Robinhood Users: Taxing Matters and More
When selling Dogecoin, remember that you’ll likely be subject to capital gains tax. This is something you need to consider if you have made a sizeable profit from selling your crypto assets.
Most countries tax gains on cryptocurrency trading. To find out more about how to calculate your crypto gains check out my article. Read on.
Also, keep in mind that Robinhood does not insure your Dogecoin. While Robinhood is a member of FINRA and your cash and stocks have SIPC insured your crypto is unsafe.
Alternatives to selling Dogecoin on Robinhood.
Robinhood nowadays offers its users a crypto wallet. This is a separate app but if you like you can move your Dogecoin off Robinhood and onto the wallet. The wallet is a hot wallet meaning it is a mobile app connected to the internet. Hot wallets are not the safest option but are ok if you don’t own a large amount of DOGE.
From there on you have a few options.
- You can just hang on to your DOGE in your Robinhood wallet. By moving them to your wallet you own the private keys to your account. Even if Robinhood were to go bust you wouldn’t care because you would own the Dogecoin in your wallet.
- If you have a serious amount invested in Dogecoin then you can move your DOGE to cold storage. You will need a cold wallet like a ledger nano to do this. Cold wallets are more secure but at the same time if you lose your wallet that’s it. There is no way to recover your crypto holdings.
- You could move your Dogecoin to a cryptocurrency exchange to trade for other cryptocurrencies that are not available on Robinhood. You just saw a coin that you think will 100x and is not on Robinhood? No problem. Just move it from your wallet to an exchange and swap your Dogecoins for the next big thing.
- You could get a loan with Dogecoin as collateral. This is a good option when you don’t want to sell your DOGE. For example, say you don’t want to sell your DOGE because you think its value will increase but at the same time you also need some cash. In this case, you can send your DOGE to a lending site and borrow a loan against your Dogecoin as collateral. Of course, this is highly risky because if the value of Doge drops the lender will liquidate you.
Is it a good idea to sell my DOGE
Dogecoin is a highly speculative meme-based cryptocurrency. If you are not a professional trader and have made a profit then I would recommend that you sell. In the past Doge’s performance has been very dependent on whether Elon Musk has promoted it or not. In any case, I would recommend you not invest your life’s savings into DOGE. If you want to find out more about why I think that check out my article about Dogecoin’s future price potential below:
Dogecoin has seen astronomical returns in the past. Its all-time high was almost 70 cents. What will the world look like if it reaches 100 bucks? Read on to find out.
If you are considering other platforms then check out my guide below
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.