Selling cryptocurrency on Robinhood is straightforward, but hidden spreads, settlement times, and security pitfalls can catch you off guard. This guide walks you through every stage—from placing an order to receiving your funds—so you can trade with confidence.
Before you sell, it helps to know where to look. Robinhood offers crypto trading on both its mobile app and web platform. The core selling process is similar, but the layout differs slightly.
On the mobile app, tap the magnifying glass or the cryptocurrency icon to find your asset. On the web platform, navigate to the "Crypto" tab from the left-hand menu. Both interfaces display your holdings, current price, and a "Trade" button.
Your portfolio shows the total value of each crypto holding, along with your average cost and total return. This view is essential for understanding your profit or loss before you sell. Remember that the displayed price is an indicative price—the final execution price may vary slightly due to spreads.
Here is the exact sequence to sell crypto on Robinhood, whether you are using a market order or a limit order.
A market order executes immediately at the best available price. However, during volatile periods, the executed price may differ from the quoted price due to slippage.
After you confirm, Robinhood will display a confirmation screen with the execution price, total proceeds, and any applicable fees (embedded in the spread). The sold crypto is immediately removed from your holdings, and the cash appears in your buying power or cash balance.
Once you sell, the cash proceeds are added to your Robinhood account. You have several options for accessing those funds.
Cash balance is the settled money available for withdrawal. Buying power includes unsettled funds that you can use to trade immediately but may not be withdrawable until settlement is complete. After a crypto sale, the proceeds are typically available as buying power instantly, but withdrawal to your bank may take a few business days.
To move cash to your bank, navigate to the "Transfers" section, select "Transfer to Your Bank", and follow the prompts. Standard ACH transfers take 3–5 business days. Robinhood may offer instant transfers for a fee, depending on your account status and bank.
If you have a Robinhood Spending (cash management) account, you can transfer funds there instantly. From the Spending account, you can use a debit card or make payments directly, which can be faster than a traditional bank transfer.
Robinhood is known for zero-commission stock trades, but crypto trades have a different cost structure. Understanding the spread is essential to know what you will actually receive.
Robinhood does not charge a separate commission for crypto trades. Instead, they generate revenue from the bid-ask spread. The spread is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). When you sell, you receive the bid price, which is slightly lower than the mid-market price. The spread varies based on market conditions and liquidity.
Here is a general comparison of how selling costs stack up. Note that fees and spreads change frequently—verify current rates on each platform.
| Platform | Commission | Spread / Markup | Withdrawal Fee (Bank) | Best For |
|---|---|---|---|---|
| Robinhood | $0 | ~0.5%–1.5% (variable) | Free (ACH, 3–5 days) | Casual traders, integrated investing |
| Coinbase | 0.4%–0.6% (taker) | ~0.5% spread | Free (ACH, 3–5 days) | Wide asset selection |
| Kraken | 0.16%–0.26% (taker) | Low spread | Varies (wire fees) | Active traders, low fees |
| Binance.US | 0.1% (taker) | Low spread | ACH fees apply | High-volume traders |
All figures are estimates. Always check the platform's official fee schedule before trading.
Crypto settlements on Robinhood occur almost immediately for the trade itself, but the cash proceeds may be subject to a settlement period before you can withdraw. Typically, it takes 2 business days for the cash to settle after a crypto sale, although Robinhood may make funds available for trading instantly.
Security is paramount when selling crypto. Robinhood implements several protective measures, but you also play a crucial role in safeguarding your account.
Always enable 2FA on your Robinhood account. Use an authenticator app (like Google Authenticator) rather than SMS-based 2FA, as SMS is more vulnerable to SIM-swapping attacks. This adds an essential layer of protection against unauthorized sales.
Phishing scams often target crypto users. Be wary of emails or messages that claim to be from Robinhood and ask for your password, 2FA codes, or personal information. Robinhood will never ask for your credentials via email. Always type the URL directly into your browser rather than clicking on links in suspicious messages.
Robinhood stores the majority of customer crypto assets in cold storage (offline) to minimize the risk of hacking. However, a small portion is kept in hot wallets for operational liquidity. While these practices are industry-standard, no system is 100% immune to risk. Robinhood is not a bank and crypto assets are not insured by the FDIC or SIPC.
Selling cryptocurrency is a taxable event in many jurisdictions, including the United States. The proceeds from your sale, minus your cost basis, result in a capital gain or loss.
Robinhood provides tax documents, such as Form 1099-B, which report your crypto transactions to the IRS (in the US). These documents include the sale proceeds and cost basis if Robinhood has that information. However, if you transferred crypto into Robinhood from another wallet, Robinhood may not know your original cost basis—it is your responsibility to track it.
For accurate tax reporting, maintain a personal record of every sale: date, amount sold, proceeds, cost basis, and fees. You can export transaction history from Robinhood in CSV format. Consult a qualified tax professional to understand your specific obligations, as tax laws are complex and vary by country.
Cryptocurrency markets are volatile and carry a high degree of risk. Prices can swing dramatically in a short period, and selling at the wrong time may result in losses. Past performance does not guarantee future results.
This guide is for educational purposes only and does not constitute financial, legal, or tax advice. You are solely responsible for your trading decisions. Always verify current fees, spreads, and platform policies directly on Robinhood's official website or app before executing any transaction.
Never invest more than you can afford to lose, and consider consulting a financial advisor for personalized guidance.
Before you click "Sell", run through this checklist to ensure you are prepared.
Situation: You hold 0.25 BTC on Robinhood and need $5,000 in cash for an unexpected car repair. The current BTC price is $22,000, but you notice the bid-ask spread is wide due to low liquidity.
Action: Instead of using a market order, you place a limit order to sell 0.23 BTC at $21,800 (slightly below the current ask) to ensure a predictable execution. The limit order fills within an hour. The cash appears in your buying power. You then initiate an ACH transfer to your bank, knowing it will take 3 business days. You also download the transaction receipt and record the cost basis for tax purposes.
Result: You avoided slippage from a market order, secured a known price, and planned for the settlement timeline. You also kept detailed records for tax reporting.
Key lesson: Planning ahead and using limit orders can save you money and stress, especially when you need to access funds on a specific schedule.