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Robinhood has become a household name for anyone dipping their toes into the world of stocks, options, and lately, cryptocurrencies. The platform’s sleek mobile app and commission‑free trading model attracted millions of new investors, many of whom are curious about the next logical step: moving their crypto holdings outside the app. The burning question on many forums reads, “can you send crypto on Robinhood?” In this article we’ll unpack exactly what Robinhood allows today, why the answer matters, and what work‑arounds exist if you need more flexibility.
Before we dive into the nitty‑gritty, let’s set the stage. Robinhood launched crypto trading in 2018, initially offering just Bitcoin (BTC) and Ethereum (ETH). Over the years it added a handful of altcoins, but the platform has always kept a tight grip on the underlying infrastructure. Unlike a traditional crypto exchange, Robinhood doesn’t give you a private key, which is the cornerstone of true ownership. This design choice directly impacts whether you can send crypto on Robinhood, and it explains why the answer isn’t a simple “yes.”
In the sections that follow, we’ll explore the current capabilities, the regulatory backdrop, and practical steps you can take if you need to transfer crypto elsewhere. Whether you’re a seasoned trader or a newcomer, understanding the limits of Robinhood’s crypto wallet is crucial for managing risk, taxes, and portfolio diversification.
can you send crypto on robinhood – The Current Situation Explained
Short answer: Robinhood does not currently support external crypto withdrawals. All crypto assets bought on the platform are locked in what Robinhood calls a “custodial wallet.” While you can trade those assets freely within Robinhood—selling BTC for ETH, for example—you cannot generate a public address to send the coins to an outside wallet or exchange.
This limitation stems from both technical and regulatory reasons. By keeping the crypto “off‑chain” (meaning the actual tokens never leave Robinhood’s internal ledger), the company can sidestep many of the compliance burdens that come with handling private keys. It also means that the platform can offer instant settlement and zero‑fee trading, a selling point that would be harder to maintain if every withdrawal required a blockchain confirmation.
That said, the situation isn’t static. In early 2024 Robinhood announced a beta program for “crypto withdrawals,” allowing a select group of users to move small amounts of Bitcoin and Ethereum to external wallets. The rollout has been gradual, and as of early 2025 only users who meet specific eligibility criteria—such as verified identity, a minimum account balance, and a history of crypto trading—can opt into the feature. If you’re not part of the beta, the short answer remains a firm “no.”
can you send crypto on robinhood – Frequently Asked Questions
- Why can’t I see a withdrawal button? Robinhood’s UI only displays “Sell” and “Buy” options for crypto. The withdrawal option appears only for eligible beta participants, and it’s labeled “Send to External Wallet.”
- Do I need a private key? No. Robinhood holds the private keys on your behalf. When you finally can send crypto, Robinhood will create a transaction on your behalf, but you still won’t see the raw key.
- Will there be fees? Robinhood has announced that external withdrawals will incur a network fee (the miner fee) plus a flat $0.50 service charge per transaction.
- Is my crypto safe? While custodial, Robinhood claims to use cold storage for the majority of assets. However, the lack of personal control means you’re trusting the platform’s security practices.
How to Work Around the Limitation
If you’re looking to move your crypto holdings out of Robinhood today, you’ll need a workaround. The most common method is to sell your crypto on Robinhood, transfer the fiat proceeds to your linked bank account, and then use a different exchange—like Coinbase, Kraken, or Binance—to purchase the same crypto again. While this adds a few extra steps, it’s the only way to regain full ownership of the coins.
Here’s a quick roadmap:
- Sell your crypto on Robinhood. Convert BTC, ETH, or any other supported coin into USD.
- Withdraw the USD to your bank. Robinhood’s ACH transfer usually takes 1‑3 business days.
- Deposit the USD into a crypto‑friendly exchange. For a step‑by‑step tutorial on moving funds from a fiat account to a crypto exchange, check out the guide on how to send crypto from Coinbase.
- Buy the crypto again. Once your funds sit on the new platform, you can purchase the exact amount you sold and transfer it to any wallet you control.
While this process may feel cumbersome, it also offers a chance to diversify your portfolio. If you were already considering a broader crypto strategy, now might be the perfect time to build a crypto portfolio that spans multiple exchanges and wallets, reducing reliance on a single platform.
Security and Tax Implications
When you sell crypto on Robinhood to circumvent the “can you send crypto on Robinhood” restriction, each trade is a taxable event. The IRS treats crypto as property, meaning you’ll need to calculate capital gains or losses for every sale. Robinhood provides a 1099‑K for the tax year, but it may not include the cost basis for each transaction, so you’ll have to pull the data from the app’s transaction history or use a third‑party tax software.
Security-wise, moving funds through multiple platforms does increase the attack surface. Make sure you enable two‑factor authentication (2FA) on both Robinhood and the exchange you’re moving to. Additionally, consider using a hardware wallet (like Ledger or Trezor) for long‑term storage once you have full control of the private keys.
Comparing Robinhood to Other Platforms
If the inability to send crypto is a deal‑breaker, you might want to explore alternatives that offer both trading and full custody. Platforms like Webull and Thinkorswim have started to roll out crypto services with external withdrawal capabilities. Even traditional broker‑deals such as eToro or Interactive Brokers now support crypto with wallet integration.
That said, Robinhood still wins on simplicity and zero‑commission trading. If you’re primarily interested in short‑term speculation and don’t need to move tokens off‑platform, Robinhood can be an efficient entry point. For long‑term holding, however, you’ll likely find more flexibility and better security on a dedicated crypto exchange.
Future Outlook: Will Robinhood Add Full Withdrawals?
Industry analysts predict that pressure from users and regulators will eventually force Robinhood to expand its crypto capabilities. The company filed a request with the SEC in late 2023 to become a “qualified custodian” for crypto assets, a move that would legally allow it to offer external withdrawals while maintaining compliance. If that request is approved, the answer to “can you send crypto on Robinhood” could shift from “no” to “yes” within the next 12‑18 months.
In the meantime, keep an eye on Robinhood’s announcements and the “Crypto Withdrawals Beta” status in your app’s settings. If you’re already a beta participant, you’ll see a small “Withdraw” button next to each eligible coin, and the process will be as simple as entering the destination address, confirming the network fee, and hitting “Send.”
Until then, the practical answer to the headline question remains that Robinhood does not currently allow most users to send crypto on Robinhood. The work‑around of selling and repurchasing on another platform is the most reliable method for gaining full control of your digital assets.
Remember, the crypto landscape evolves rapidly. What’s true today might change tomorrow, so stay informed, keep your security practices sharp, and consider diversifying across platforms if you want both convenience and autonomy.