The Robinhood platform has quickly popularized itself all over the United States due to its relative ease of use.
In the same order of idea, Coinbase is one of the best exchanges for people who want to sell crypto, purchase coins, store tokens, and more.
Cryptocurrency investor decides to move from Robinhood to Coinbase for several reasons. The most common is to avoid the restriction that Robinhood places on crypto; the biggest restriction is the fact that you cannot send or receive crypto to/from Robinhood.
But the question is can I transfer crypto Robinhood to Coinbase?
There are the following steps in which you can transfer crypto to Robinhood to coins.
In today’s post, we’ll discuss all you need to know about the following matters:
- How to transfer from Robinhood to Coinbase.
- Transferring funds from Robinhood to Coinbase directly: is it possible?
- What to know before transferring crypto funds from one platform to another.
Robinhood Crypto Vs. Coinbase
Coinbase is, for many, the best place to purchase crypto, transfer crypto directly to other platforms, and withdraw crypto funds.
Although the Robinhood app isn’t only for buying or trading cryptocurrency, the truth is that it works well enough for it.
Nonetheless, crypto trading inside Robinhood is often very limited. If you want to trade crypto or sell your crypto, you’ll probably encounter some walls due to the relatively new crypto transfer functionality on Robinhood.
Since both platforms operate in centralized environments, the new user must have their e-mail, address, and phone number connected to them before being able to set a payment method on a new account.
Transfer Crypto Out of Robinhood
There has been a wide debate around Robinhood crypto ownership. For starters, it is important to mention that during most of 2022, there was no such thing as Robinhood crypto wallets.
Yes, purchasing crypto on your Robinhood account was possible, but the user did not have control over that digital wallet.
A new Robinhood wallet is being implemented, allowing the user to transfer the total or partial amount of crypto out for exchange out of the exchange.
But the thing is that the new crypto wallet is not available for everyone. As a consequence, making a direct transfer of funds is not possible for all users, but it is for some,
This leaves us with two alternatives:
- You have been rolled out with the crypto wallet feature, and you can easily transfer funds to a Coinbase or a cold storage wallet.
- You need to sell crypto, convert into fiat money, draw it from Robinhood and move it to Coinbase.
Transferring Crypto From Robinhood to Coinbase
The question that is in the mind of people is, can I transfer crypto Robinhood to Coinbase?
The short answer is yes, you can transfer crypto Robinhood into Coinbase; for this, there are the following steps:
Until the new Robinhood crypto is fully rolled out, your only option for getting your crypto assets over the Coinbase is to sell what you have in Robinhood. Then you would transfer that money to your bank account.
After that, you would move that money into your Coinbase account. Finally, you would repurchase the crypto assets.
Keep in mind this could expose you to potential capital gain taxes if you sell your crypto for profit.
Not to mention, the price could fluctuate while you are in cash, moving the funds from Robinhood over to Coinbase.
Unfortunately, there is no crypto transfer functionality like there is with a stock transfer over on Robinhood.
You can transfer stock out of Robinhood to another brokerage for a fee. However, you cannot transfer crypto at this time.
If you decide to sell what you have in Robinhood and move it to Coinbase, here is how you accomplish this:
1) Selling Robinhood Crypto Assets
Because you cannot do a direct transfer, the first step is going to be selling the cryptocurrency you wish to move.
Keep in mind this could create a taxable event if you sell for profit. You have to choose between selling all or partial amounts for your various crypto.
How to Sell Crypto Assets on Mobile
- Find the crypto you are looking to sell and click trade.
- Then tap on sell.
- Enter the dollar amount of crypto you want to sell.
- Click on the review to make sure the information is correct.
- Swipe up to submit your request.
How to sell crypto assets on the web
- Find that crypto you wish to sell and navigate to the detail page for that specific one.
- Click sell on the options window.
- Enter the dollar amount which you want to sell.
- Review the information to make sure it is correct.
- Submit your sell order.
There will be a settling period of the initial trade day plus two more trading days before your funds will be available for withdrawal.
You will not be able to move any of that money out of Robinhood in that time.
On those days have passed, the next step is to move the money to your bank account.
2) Transfer Robinhood funds to a bank account
The next step will be to transfer the money into your bank account that is connected to your Robinhood
How to transfer on mobile
- Tap on your account in the bottom right corner of the screen.
- Click transfer and choose transfer to your bank.
- Enter the amount of fund you wish to transfer
- Click submit.
3) Setting up a Coinbase account
Once you have the fund settled into your bank account. You will need to transfer them to your Coinbase account.
If you already have an account set up with Coinbase, then you will just deposit funds from your connected bank account.
Deposit funds to your Coinbase account
Here are the steps to deposit funds from your connected bank account
- Open the trading view.
- Select deposit under the wallet balance.
- Select USD in currency type.
- Click the bank account tab.
- Select from and add an account where you will be redirected to finish the account verification.
- Link your bank account via paid.
4) Purchase crypto assets on coinbase
The crypto you have in Robinhood has been sold off, and the money has been moved to Coinbase.
Now, you would purchase cryptocurrency over on Coinbase if you wanted to replicate what you owned over on Robinhood.
Here is how to purchase crypto on coinbase
- Open the coinbase app.
- Click on the trade tab at the bottom of the app or locate this on the web app.
- Select the crypto assets you want to purchase.
- Click the blue trade button at the bottom.
- Select buy with cash.
- Type in the dollar amount you would like to purchase.
- Click the blue preview buy button.
- Confirm the order after reviewing the details and fees.
Until they realize the Robinhood crypto wallets, getting your crypto assets out is a bit of a hassle.
If you want to ditch Robinhood for crypto trading, the process requires you to liquidate your crypto assets, move the cash to the bank, transfer cash to Coinbase and repurchase the crypto over there.
Since it involves the sale of the crypto, you may be required to pay capital gain taxes if you are selling the crypto at a profit. Further, taxes rate and other regulations differ in your country of taxation.
So, currently, if you are looking to transfer crypto from Robinhood to Coinbase, the only way is to sell existing crypto, get cash in hand, open an account with the coin base, make a deposit, and invest in the coin base.
Frequently asked questions
Should I leave Robinhood?
Well, it’s dependent on your own priorities and investment objective. However, it’s clear that Robinhood is not tax-effective and does not offer bonds that help in portfolio diversification.
So, it’s difficult to sustain proficient investment while you remain within Robinhood. Hence, it does not seem to be a logical choice to sustain Robinhood if you are looking for a long terms investment strategy.
Why can’t I withdraw funds from Robinhood?
It may be due to the reason that you’ve reached the limit for with drawl. Currently, you can withdraw $50,000 or carry out five transactions per day.
So, if you try to withdraw more than the limit, there may be some error or restriction in the withdrawal.
Is it safe to keep crypto in Robinhood?
Although, there is a trend of leaving Robinhood. However, it’s a fact that your crypto within Robinhood is safe. It’s because they need to comply with different regulations, including money transfer laws, the bank secretary Act, etc.