How to buy and sell crypto 24/7 on Robinhood
Robinhood makes cryptocurrency trading accessible around the clock, offering a straightforward platform for buying and selling digital assets like Bitcoin, Ethereum, and Dogecoin any time of day or night. Unlike traditional stock markets that operate during specific hours, crypto markets never close, and Robinhood's platform reflects this reality.
This guide explains how to navigate crypto trading on Robinhood, from placing your first order to understanding the different types of trades you can make. Whether you're looking to make a quick purchase or set up more sophisticated trading strategies, understanding these tools helps you trade more effectively.
Understanding crypto trading basics
Cryptocurrency trading differs from stock trading in several key ways. Crypto markets operate continuously, meaning prices change constantly based on global demand and supply. This creates both opportunities and risks that don't exist in traditional markets.
When you trade crypto on Robinhood, you own the actual cryptocurrency, not just exposure to its price movements. This ownership gives you all the benefits and risks that come with holding digital assets, including the right to transfer your coins to other wallets or platforms.
The platform supports fractional trading, meaning you don't need to buy whole coins. You can purchase $10 worth of Bitcoin or 0.005 Ethereum, making expensive cryptocurrencies accessible regardless of your budget. This flexibility allows you to diversify across multiple cryptocurrencies without large capital requirements.
How 24/7 trading works
Crypto trading on Robinhood operates continuously except during scheduled maintenance periods. This constant availability means you can react to news events, market movements, or personal circumstances whenever they occur, rather than waiting for markets to open.
The platform processes your orders in real-time during normal operations. When you place a trade at 2 AM on a Sunday, it executes just as it would during traditional business hours. This immediacy allows you to capitalize on market movements or protect your positions regardless of when they happen.
Scheduled maintenance occasionally interrupts trading, but Robinhood alerts users in advance when these windows occur. These brief interruptions ensure the platform operates smoothly and securely for all users.
Order types explained
Robinhood offers four main order types for crypto trading, each serving different purposes and trading strategies.
Market orders
Market orders execute immediately at the current best available price. When you want to buy or sell crypto quickly without worrying about small price differences, market orders provide the fastest execution.
Robinhood adds protective buffers to market orders to prevent dramatic price swings from affecting your trade negatively. Buy orders won't execute if the price moves more than 1% higher than when you placed the order, while sell orders won't execute if the price drops more than 5% below your order price.
If your market order doesn't execute within two minutes due to these price protections, the platform automatically cancels it. This prevents you from accidentally trading at prices much worse than you expected.
Limit orders
Limit orders give you precise control over the price you pay or receive for crypto. With a buy limit order, you set the maximum price you're willing to pay. With a sell limit order, you set the minimum price you'll accept.
These orders only execute when market conditions meet your specified price requirements. Your buy limit order executes when the crypto's price falls to or below your limit price. Your sell limit order executes when the price rises to or above your limit price.
Limit orders offer price certainty but don't guarantee execution. If the market never reaches your specified price, your order remains unfilled. This trade-off between price control and execution certainty makes limit orders valuable for patient traders who prioritize getting specific prices.
Stop orders
Stop orders help you automate buying or selling decisions based on price movements. When a cryptocurrency reaches your predetermined stop price, the order converts to a market order and executes at the best available price.
Buy stop orders sit above the current market price and trigger when prices rise to your stop level. Traders use these when they believe a cryptocurrency will continue rising after breaking above a certain price point.
Sell stop orders sit below the current market price and trigger when prices fall to your stop level. These help limit losses by automatically selling your position if prices decline to predetermined levels.
Stop limit orders
Stop limit orders combine stop orders and limit orders for maximum control. When the crypto reaches your stop price, the order becomes a limit order rather than a market order. This prevents you from trading at drastically unfavorable prices during volatile market conditions.
The added control comes with increased complexity. Your order must first trigger at the stop price, then find buyers or sellers willing to trade at your limit price. In fast-moving markets, this two-step process might prevent your order from executing entirely.
Stop limit orders work best in relatively stable market conditions where you want protection from both adverse price movements and extreme execution prices.
Placing your first trade
Trading crypto on Robinhood requires just a few taps or clicks. Start by navigating to the crypto section and searching for the cryptocurrency you want to trade. Each crypto displays current pricing, recent performance charts, and relevant market information.
Select "Buy" or "Sell" depending on your intended action. Enter the amount you want to trade, either in dollar terms or crypto units. The platform shows you exactly how much crypto you'll receive or how much cash you'll get before you submit the order.
Choose your order type from the actions menu. For beginners, market orders provide simplicity and immediate execution. As you become more comfortable, experiment with limit orders to gain better price control.
Review your order details carefully before submitting. Check the amount, order type, and estimated execution price. Once satisfied, submit your order and monitor its status in your account.
Managing risk and position sizes
Robinhood sets position limits to help manage risk across the platform. Bitcoin, Ethereum, and other major cryptocurrencies have maximum position limits of $50 million in cost basis, while smaller cryptocurrencies are limited to $20 million.
These limits rarely affect individual traders but demonstrate the platform's commitment to risk management. Your actual holdings can exceed these limits if market appreciation increases your position values above the cost basis limits.
Start with small positions while learning how crypto trading works. The minimum order size of just $0.01 allows you to experiment without significant risk. Gradually increase position sizes as you develop experience and confidence.
Consider spreading your crypto investments across multiple currencies rather than concentrating in one asset. This diversification reduces the impact of any single cryptocurrency's poor performance on your overall portfolio.
Understanding costs and spreads
The difference between buy and sell prices for any cryptocurrency is called the spread. This spread represents the cost of trading and reflects market liquidity conditions. More popular cryptocurrencies like Bitcoin typically have smaller spreads than lesser-known alternatives.
Robinhood advertises competitive pricing compared to other platforms, but always check current spreads before trading. Market conditions change constantly, affecting the costs of buying and selling different cryptocurrencies.
Your trading costs depend not just on spreads but also on your order types and timing. Market orders provide immediate execution but accept current market prices. Limit orders might secure better prices but risk non-execution.
Advanced features and tools
Robinhood offers several features that enhance your crypto trading experience beyond basic buying and selling. Price alerts notify you when cryptocurrencies reach specific price levels, helping you monitor markets without constant attention.
Recurring buy orders automate regular crypto purchases, implementing dollar-cost averaging strategies that smooth out price volatility over time. This approach works well for long-term investors who want steady exposure to crypto markets.
The platform provides detailed charts and technical indicators for analyzing price trends and making informed trading decisions. These tools help you identify potential entry and exit points based on historical price patterns.
Security and account protection
Robinhood stores the majority of customer cryptocurrency in cold storage, disconnected from the internet. This offline storage protects your assets from most hacking attempts and cybersecurity breaches.
The platform carries crime insurance through Lloyd's syndicates, providing additional protection against theft and security breaches. While this insurance doesn't cover market losses, it protects against operational risks outside your control.
Regular security audits and third-party testing help maintain platform integrity. However, your personal security practices matter just as much. Use strong passwords, enable two-factor authentication, and never share account credentials.
Getting started
Opening a Robinhood Crypto account requires meeting basic eligibility requirements. You must be at least 18 years old, have a valid Social Security number, and maintain a legal U.S. residential address. The platform operates in all 50 states and the District of Columbia.
Account funding works through bank transfers, buying power, or debit cards where available. Your crypto purchases settle immediately for trading purposes, though bank withdrawals still require standard settlement periods.
Start by adding cryptocurrencies to your watchlist to monitor their price movements and market behavior. This observation period helps you understand how different cryptocurrencies behave before committing capital.
Begin with small trades to familiarize yourself with the platform's interface and order types. The combination of 24/7 availability, fractional trading, and multiple order types gives you flexibility to develop trading strategies that match your goals and risk tolerance.
Remember that crypto trading involves substantial risk, including the possibility of total loss. Prices can be extremely volatile, and the markets operate without many protections available in traditional securities markets. Never invest more than you can afford to lose, and consider crypto as part of a diversified investment strategy rather than a complete solution.
FAQs
Can I trade cryptocurrency 24/7 on Robinhood?
Yes, you can trade cryptocurrency on Robinhood 24 hours a day, 7 days a week, except during brief scheduled maintenance periods.
Do you actually own the cryptocurrency you buy on Robinhood?
Yes, when you purchase cryptocurrency on Robinhood, you own the actual digital assets, not just exposure to their price movements. You have the right to transfer your coins to other wallets or platforms.
How quickly can you buy and sell crypto on Robinhood?
Trades are processed in real-time during normal operations. Market orders execute immediately at the best available price, while other order types execute based on their specific conditions.
What types of crypto orders can I place on Robinhood?
Robinhood offers four main order types: market orders (immediate execution), limit orders (price-specific), stop orders (trigger at specific price), and stop limit orders (combination of stop and limit orders).
What are the minimum and maximum trading amounts for crypto on Robinhood?
The minimum order size is $0.01, while maximum position limits are $50 million in cost basis for major cryptocurrencies and $20 million for smaller ones.
How does Robinhood protect my cryptocurrency?
Robinhood stores most customer cryptocurrency in cold storage (offline) and carries crime insurance through Lloyd's syndicates to protect against theft and security breaches.
Can I transfer crypto out of Robinhood?
Yes, you can transfer your cryptocurrency to other wallets or platforms as you own the actual digital assets.
Are there any fees for trading crypto on Robinhood?
While Robinhood advertises competitive pricing, there are spreads between buy and sell prices that represent the cost of trading. These spreads vary by cryptocurrency and market conditions.
How do I get started trading crypto on Robinhood?
You must be 18 or older, have a valid Social Security number, and maintain a legal U.S. residential address. You can fund your account through bank transfers, buying power, or debit cards where available.
What tools does Robinhood offer for crypto trading?
Robinhood provides price alerts, recurring buy orders, detailed charts, and technical indicators to help you analyze and execute trades effectively.
Can I trade fractional amounts of cryptocurrency?
Yes, Robinhood supports fractional trading, allowing you to buy partial amounts of cryptocurrency based on dollar amounts rather than whole coins.
What happens during maintenance periods?
Trading is temporarily suspended during scheduled maintenance periods, but Robinhood alerts users in advance when these windows will occur.
