In this step-by-step guide, I will walk you through how to sell the crypto in your Robinhood account. I will also show you the different sell order types and how to implement them. Together we will look at the selling fees, tax implications, and what you could do after you sell your crypto on Robinhood.
Infographic with steps to sell crypto on Robinhood
- Open the Robinhood app and log into your account
- Navigate to the crypto you want to sell in your portfolio
- Click on the Sell Button
- Type in the amount you wish to sell. Tap the sell all button if you want to sell everything
- Leave the default setting of One time
- Click on review and cross-check the details
- Swipe up to submit your order
The sale of your digital assets will execute almost instantly and the next notification will alert you that your order has been completed
When you check your buying power you should see that it has increased by the same amount that you sold your crypto for.
Can I transfer my sales proceeds to my bank account?
While you can use the sales proceeds to buy stock crypto and any other financial asset on Robinhood you won’t be able to withdraw straight to your bank account. You will need to wait 5 business days to be able to do that.
However, if you are really in a hurry Robinhood has a crypto wallet. If you download the Robinhood crypto wallet you can then send your crypto to a crypto exchange and cash out from there. For example, Coinbase allows for instant withdrawals.
Sell Order types
There are three types of sales orders you can place on Robinhood
1. Market orders
The default sell option is a market order. This means that you will get whatever the current prevailing price on the market is.
2. Limit orders
The second option is to set a limit order. A sell limit order allows you to set a limit price below which you are unwilling to sell. Limit orders provide more control over your selling price but may not be executed immediately.
For example, say the price of ETH is $500. You may want to sell only if it goes above $600 so that you can lock in 20% in profit. So you can set a sell limit order with a limit price of $600. This order won’t execute until and unless the price of ETH goes above $600 after which it will start executing as long as the price stays above $600.
A sell limit order might never execute if the asset does not hit the target price or the order could be partially filled if the price hits the limit price and drops back down.
How to place a sell limit order on Robinhood
- On the order confirmation page, click on “USD” or “market order” in the top right
- Select “Limit” from the available options.
- Enter the specific limit price at which you want to sell your cryptocurrency.
- Click on the “Review” button and confirm all details are correct.
- Swipe up to submit the limit sell order.
Another useful order type on Robinhood is the stop order also known as a stop-loss order. A stop order allows you to protect against potential price declines by automatically selling your cryptocurrency at a specified price below the current market price.
This order type can be beneficial if you want to limit potential losses or secure profits by triggering a sell order when the price drops to a predetermined level.
To place a stop-loss order on Robinhood, follow these steps:
- On the order confirmation page, click on “market order” in the top right
- Select “Stop Loss” from the available options.
- Enter the specific stop price at which you want your sell order triggered.
- Review the order details and ensure everything is accurate.
- Swipe up for your order to go through
See How to Set a Stop Loss on Robinhood for Your Crypto for more.
Stop Limit Orders
A stop limit order is the same as a stop order except it will only execute the order if it can meet the limit price.
Where can I see my sale after I make it on Robinhood?
Robinhood provides an order history page that allows you to view information about your executed and pending orders.
To access your order history on Robinhood, follow these steps:
- On the Robinhood app, tap on Settings located under accounts
- On the settings page, tap on the “History” tab.
- This will bring you to the order history page, where you can review your recent and past orders, including the status, date, and time of execution.
What should I do with my funds once I sell
You have three options
- Store it
If you have made a profit on your sale you can consider investing in other crypto assets or some of the more mainstream financial products such as stocks and ETFs offered on Robinhood’s trading platform.
If you have a sizable amount of savings I would not recommend you store it in cash on Robinhood. Robinhood is not a bank. Having said that Robinhood is a member of the Securities Investor Protection Corp. (SIPC) which means you are insured for up to 250,000 in cash. However, it is best to diversify your investments and not hold too much cash as its value deteriorates due to inflation.
3. Cash out
After 5 business days, you can make an ACH transfer to your bank account and cash out in fiat currency i.e. dollars. Also, see How to Cash Out Dogecoin on Robinhood.
Do I need to sell my cryptocurrency holdings to move from Robinhood to another exchange?
It used to be the case that the only way to move crypto from Robinhood to a crypto exchange was to sell your crypto on Robinhood and then cash out and deposit that cash on a crypto exchange.
However, Robinhood has now introduced a crypto wallet for its users. The wallet mobile app is only available for iOS devices at the time of writing but there is a waiting list for the Android device wallet as well. See Is Robinhood Bad for Crypto for more.
Those who have sizable cryptocurrency investments can send them to a cold storage wallet such as a Ledger or Trezor device which is impossible to hack.
The Robinhood wallet allows you to send your crypto holdings from your Robinhood account to any other wallet or cryptocurrency exchange of your choice.
Storing your crypto in the Robinhood wallet means that only you have access to the private keys of your account.
Understand selling fees
Robinhood does not charge any fees for crypto trading because it makes its money by providing order flow (volume) to market makers.
However, you do need to account for blockchain network fees. These are transaction fees that blockchains charge to reward their miners or validators. There is no way to escape blockchain fees no matter what trading platform you use. Such fees are usually insignificant but can be high during times of high demand or network congestion.
Once you cash out you may also need to account for wire transfer fees.
Crypto sale tax implications
Depending on the country you pay taxes in you may need to pay capital gains tax if you make a profit on your sale.
For example, if you bought 2 ETH at $1,000 and sold them when the price of ETH hit $2,000 then you would have made 2*2,000-2*1,000=$2,000.
Capital gains in the United States are taxed at 15%. Selling crypto could also result in a possible loss. In this case, you may be able to declare it and offset it against any winnings over the next few years.
See How to Calculate Crypto Gains for more on this subject.
Security measures: how to prevent someone from selling your crypto
To prevent your account from getting hijacked it would be best to enable two-factor authentication. This makes it much harder for hackers to access your device.
Can I short-sell crypto on Robinhood?
No, Robinhood does not allow you to short cryptocurrencies. See How to Short Crypto on Robinhood for more.
Should I sell my crypto on a centralized exchange?
The benefit of using a centralized exchange is that there is a wider selection of cryptocurrencies to buy from. The drawback is that they are only for trading crypto i.e. you can’t invest in other financial products such as stocks.
Robinhood is an online brokerage known for its commission-free trading of stocks, ETFs, and crypto. The platform also offers options trading and a prepaid card in partnership with Mastercard. Robinhood is especially popular with younger millennials and Gen-Z users for its user-friendly interface and 0% commissions.
- Binance Limit Vs Market Order: Understand the Difference
- How to Set Limit Order on Coinbase App in 6 Steps
Why won't Robinhood let me sell crypto?
You need to make sure your Robinhood financial account is not restricted. Common reasons could be that you have not KYC'd, regulatory restrictions in your jurisdiction, or technical glitches. On very rare occasions Robinhood has limited trading on specific cryptos with the restrictions on Dogecoin trading in 2021 being the most notable.
How much does Robinhood charge to sell crypto?
Robinhood does not charge any commission fees for selling crypto. However, you should always compare prices on the crypto market before you accept a sale to make sure you are getting the best price. Keep in mind that you will have to pay network fees to the blockchain of the crypto coin or token you are selling. You will need to pay for this regardless of which platform you use.
Is Robinhood safe for crypto?
While Robinhood is a member of FINRA your crypto assets are not protected by the Federal Deposit Insurance Corporation (FDIC) and neither are they SIPA insured. This means that if Robinhood were to go bankrupt you would not get your crypto back. However, Robinhood has recently released a non-custodial crypto wallet. If you use the wallet then only you can access the funds. The wallet is a hot wallet i.e. it is internet-connected. If you have a large amount of crypto your safest option is to use a hardware wallet such as a Ledger or Trezor device.
Can you day trade crypto on Robinhood without 25k?
Yes, cryptocurrency trading is not subject to the pattern day trading rules that traders need to comply with in the United States. You can trade crypto 24/7 as there is no central authority to prevent this.
Why can't I withdraw crypto from Robinhood?
You need to download and install the Robinhood Wallet app on your iOS device. Robinhood has not released an Android wallet yet but there is a waiting list. Once you install the wallet you will be able to transfer funds from your Robinhood account to your wallet. From there you can send your crypto to any compatible address that you like. If you use an Android device your only option currently is to sell your crypto assets and cash them out to a bank account after 5 business days. After that, you can deposit the cash on a crypto exchange and trade from there.
In this brief guide, I will walk you through how to set up a stop-loss order when trading crypto assets on Robinhood. Read more.