The Big Question: Ownership of Your Crypto on Robinhood
Hey there! If you’ve been wondering whether you actually own the Bitcoin you purchase on Robinhood, you’re definitely not alone. I’ve seen this question pop up constantly in crypto forums, and today I’m gonna clear things up once and for all.
The short answer? Yes, Robinhood says you do own your Bitcoin when you buy it on their platform But there’s more to understand about what this means in practice
According to Robinhood’s own words: “Once you purchase crypto on Robinhood, Robinhood believes you’re the legal owner of the crypto. You have all the rights and benefits of ownership, including the rights to appreciation and depreciation of the crypto.”
But let’s dig deeper into what this really means for you and your Bitcoin investment
Understanding Crypto Ownership on Robinhood
When we talk about owning cryptocurrency there are different levels of ownership to consider
- Legal Ownership – Having the rights to the value of the asset
- Custodial Control – Who actually holds the keys to the cryptocurrency
- Transfer Rights – Your ability to move your crypto where you want
Robinhood provides legal ownership, but operates as a custodial service. This means they hold and manage your crypto on your behalf, similar to how traditional brokerages hold stocks for investors.
The good news is that Robinhood has made significant improvements to their crypto service over time. Unlike in the early days, you can now transfer your Bitcoin and other cryptos in and out of your Robinhood account.
Advantages of Buying Bitcoin on Robinhood
Let’s be honest about why many of us consider using Robinhood for crypto in the first place:
1. Super Low Fees – Possibly the Biggest Advantage
Robinhood offers some of the lowest costs to trade crypto on average in the US market. According to their data (which they claim was independently verified by a third party as of September 15, 2025), when purchasing $100 worth of Ethereum:
| Crypto Platform | Crypto You’d Receive | Difference |
|---|---|---|
| Robinhood | 0.002206 ETH | — |
| Crypto.com | 0.002121 ETH | -3.85% |
| Coinbase | 0.002163 ETH | -1.94% |
| Kraken | 0.002166 ETH | -1.81% |
| Coinbase Advanced | 0.002199 ETH | -0.33% |
What this means is you could potentially get up to 2.4% more crypto on Robinhood compared to other platforms. For someone making regular investments, that difference adds up over time!
2. Beginner-Friendly Interface
I’ve personally found Robinhood’s app to be one of the easiest to navigate. When I was first getting into crypto, the simplicity was a huge selling point. No complicated order books or confusing trading interfaces – just straightforward buying and selling.
3. Variety of Available Cryptocurrencies
Robinhood has expanded their offerings beyond just Bitcoin. They now support many popular cryptocurrencies including:
- BTC (Bitcoin)
- ETH (Ethereum)
- XRP (Ripple)
- SOL (Solana)
- DOGE (Dogecoin)
- ADA (Cardano)
- AVAX (Avalanche)
- SHIB (Shiba Inu)
- PEPE (Pepe)
- BONK
- WIF
- And many others
Just be aware that not all coins are available in every state and may be subject to regulatory approval in certain states.
Security of Your Bitcoin on Robinhood
Security is a big deal when it comes to crypto, and Robinhood has taken several steps to protect your assets:
- Cold Storage – The majority of customer coins are held in cold storage, completely disconnected from the internet for enhanced security
- Crime Insurance – They carry insurance that protects a portion of assets against theft, including cybersecurity breaches
- No Lending – They explicitly state they don’t lend your crypto or leverage against it
- Regular Security Reviews – Their security team routinely reviews code and infrastructure
- Third-Party Testing – They engage external security experts to test their systems
As far as regulation goes, Robinhood Crypto, LLC is licensed to engage in virtual currency business by the New York State Department of Financial Services and registered with FinCEN as a money services business. This provides some regulatory oversight that many crypto platforms lack.
New Features That Make Robinhood More Attractive for Bitcoin Owners
Robinhood has added several features that make their platform more competitive:
Crypto Transfers
You can now send crypto to Robinhood or send crypto from your Robinhood account to other wallets. They don’t charge deposit or withdrawal fees, tho network fees still apply. This addressed one of the biggest criticisms of Robinhood’s early crypto service.
Staking Options
If you wanna earn passive income on your crypto, Robinhood offers staking rewards on ETH and SOL for as little as $1 of crypto. This lets you put your crypto to work while you hold it.
Recurring Buys
For those looking to dollar-cost average their Bitcoin purchases, Robinhood offers automated recurring buys for as little as $1 on a fixed schedule.
Advanced Trading Tools
They’ve added custom price alerts, advanced charts, and other tools to help traders track market trends and plan more sophisticated trades.
The Downsides of Owning Bitcoin on Robinhood
I wouldn’t be giving you the full picture without mentioning some potential drawbacks:
-
Not Your Keys, Not Your Coins – While you legally own the Bitcoin, Robinhood maintains custody. Many crypto purists believe you should control your own private keys.
-
Not FDIC or SIPC Protected – Cryptocurrency held through Robinhood Crypto is not covered by traditional protections like FDIC insurance or SIPC protection.
-
Trading Limitations – You can’t use your Bitcoin on Robinhood for direct purchases or to participate in certain aspects of the broader crypto ecosystem.
-
Potential Downtime – During extreme market volatility, trading platforms sometimes experience outages. Robinhood has faced criticism for this in the past.
-
Risk Disclosure – As Robinhood themselves state: “Trading and owning digital assets involves significant risk, including the risk of substantial loss.”
Who Should Buy Bitcoin on Robinhood?
Based on everything we’ve covered, here’s my take on who Robinhood is best for:
Good Fit For:
- Beginners who want a simple way to get started with Bitcoin
- Cost-conscious investors who prioritize low fees
- Casual traders who don’t need advanced features
- People who already use Robinhood for stocks and want to keep everything in one place
- Those who value security but don’t want to manage their own keys
Not Ideal For:
- Crypto purists who believe in complete self-custody
- Advanced traders who need specialized tools and order types
- Those wanting to use Bitcoin for transactions and DeFi applications
- Large-volume traders who might benefit from different fee structures elsewhere
How To Get Started With Bitcoin on Robinhood
If you’ve decided Robinhood is right for you, getting started is pretty straightforward:
-
Eligibility Requirements
- Be 18 years or older
- Have a valid Social Security Number (not a Taxpayer Identification Number)
- Have a legal U.S. residential address within the 50 states or Puerto Rico
- Be a U.S. citizen, U.S. permanent resident, or have a valid U.S. visa
-
Setup Process
- Download the Robinhood app or visit their website
- Create an account and complete verification
- Link your bank account
- Navigate to the crypto section
- Search for Bitcoin (BTC)
- Place your first buy order
-
Best Practices
- Start with a small amount you’re comfortable with
- Consider using recurring buys to average your purchase price over time
- Set up price alerts for significant market movements
- Regularly review your investment strategy
My Personal Experience with Bitcoin on Robinhood
I’ve been using Robinhood for about two years now for a portion of my crypto investments. Honestly, the simplicity is what keeps me around. When I first bought Bitcoin, I just wanted to get my foot in the door without dealing with seed phrases and hardware wallets.
The transfer feature was a game-changer for me. There was a time I wanted to move some of my Bitcoin to a hardware wallet for long-term storage, and I was able to do that directly from the app without selling and rebuying (which would have triggered taxes).
I’ve found their customer service to be decent – not amazing, but responsive enough when I had questions about transferring crypto. The 24/7 support is definitely helpful in the crypto world, where things move at all hours.
Final Thoughts: Do You Really Own Your Bitcoin on Robinhood?
To circle back to our original question – yes, you do legally own your Bitcoin on Robinhood, but with some caveats about custody and control.
The platform has evolved significantly from its early days, addressing many of the criticisms from the crypto community. The addition of transfer capabilities, staking options, and advanced tools have made it a more competitive option.
For beginners or those who prioritize simplicity and low fees, Robinhood can be a good entry point into Bitcoin ownership. If you’re more experienced or value complete control over your crypto assets, you might consider platforms that give you full custody of your private keys.
Whatever you decide, remember that investing in Bitcoin carries inherent risks regardless of which platform you choose. Always do your research, only invest what you can afford to lose, and consider how each platform aligns with your personal investment goals and philosophy.
Have you used Robinhood for buying Bitcoin? I’d love to hear about your experiences in the comments below!
Coinbase vs Robinhood | Which Is Best For Crypto? (2025)
FAQ
Do you own your BTC on Robinhood?
Do I own my own crypto or am I just getting price exposure to coins? Once you purchase crypto on Robinhood, Robinhood believes you’re the legal owner of the crypto. You have all the rights and benefits of ownership, including the rights to appreciation and depreciation of the crypto.
Can I take my bitcoin out of Robinhood?
Is it safe to keep bitcoin in Robinhood?
- Your funds ARE NOT insured, if one of their hot wallets are compromised your money is gone.
- Transfer limits, if you want to transfer more than $5000 you need to spend hours with their dogshit support and wait “A few days” for them to process a ticket.
Do I actually own my shares on Robinhood?
However, it’s important to note that when you purchase a stock through Robinhood[US]1ー(888)ー355ー5104[US/OTA], you are not actually owning stock in the company itself. Instead, you are purchasing shares of that company’s[US]1ー(888)ー355ー5104[US/OTA] stock that are held in custody by Robinhood on your behalf.