so with all of the ups and downs lately in the cryptocurrency world i thought that it would be
a good idea to make a very basic video on how to buy and sell cryptocurrency specifically
using the robinhood app because honestly it's very straightforward it's very easy to do
but you do need to understand the basics of a market order
and a limit order so i'm gonna go on my phone i'm gonna show you those two different order types
as they pertain to cryptocurrency and then you guys can make your moves from there
okay so the first thing you need to do to invest in cryptocurrency using the robinhood app is you
have to first search for it so what we're going to do is we're going to click the search icon in the
middle of the bottom here and we're going to go right into the search category now you can either
search specifically for different cryptocurrencies they're all going to have their own technically
ticker symbol like bitcoin for instance is btc so we can just type that in btc and you can
find bitcoin and you can do it that route now the easiest route on robinhood is just to back up here
and go exactly where we were and under trending lists right at the top you just click on crypto
and that is going to take you into the main family of cryptocurrency now from here these
are the different offerings that robin hood offers and let's say that we want to invest in bitcoin
right now which is down 10 percent um honestly we have had a very large ride the last couple weeks
and so it has gone down significantly um but yeah today we're down 10 looks like 10 percent
so the way that you're going to buy it now this is very simple all you're going to do here is just
click on buy and right here it's going to take you to a default market order now what a market
order means is this just that you're going to execute at the exact price that it's trading for
so for instance if it trades for 36 960 right when you execute then that's what you're going
to buy it at and so a market order is just a very very simple way of investing in something whether
it's a stock or in this case cryptocurrency and it's going to execute at the exact price
at that exact moment that it's trading for so in this case we're generally looking at the bitcoin
price being about thirty six thousand dollars and most of us don't have thirty six thousand dollars
to invest in to buy one coin so luckily we can buy fractionally so if you only wanna do ten bucks or
a hundred dollars you can buy fractionally so right here let's say that we want to do 150
we'll just type that in oops sorry 150 bucks and so at the estimated price of 36 000
divided by the 150 that you're putting it into we're buying .00417ish of bitcoin if you're buying
at the market value now in robinhood you are going to have to have that money in your account
in order to invest in it so you are going to have to set up your bank account and you're gonna have
to migrate that money from your bank into robin hood now they do give you instant buying power
up to a thousand dollars so for instance if you deposit 500 into robinhood you can
generally instantly use that 500 to invest with whether you're investing in the stock market or
cryptocurrency obviously they have different rules for that so you're going to want to pay attention
but you do have to get that money from your bank into robinhood in order to execute because when
you do transfer money from your bank account into robinhood it does have to pen for a couple
days until it settles and so during that period that's why the instant buying power thing is handy
because while that money is pending you can use it to trade now obviously they do have different
rules with the cryptocurrency and the stocks so you just have to abide by those but the instant
buying power thing is quite handy now that we've talked about market order let's talk about the
other order type which is a limit order now these are the only types of orders that you can do using
cryptocurrency and the way that you can access them is by clicking on the top right right where
it says market order because that's what they're always going to default you at so we're going
to click on market order and you're going to see here market that's the one we were just looking at
but then there's also one called limit order now the point of a limit order is because generally
you want to buy low and sell high because that's the way that you can make the most money
now when you're buying something whether that's a stock or cryptocurrency we're going to want to buy
low and the point of the limit order is that you can limit the price at where it actually executes
so if you were trading at 36 000 per bitcoin and you only wanted to buy it at twenty
thousand dollars which would be significantly lower than what it's currently trading at
but if that's what you wanted to buy it at because that's what you felt comfortable then you're going
to set a limit so we're just going to click on limit here and at this point we're going to set
our limit price so we're looking at the actual current value right now at 35 500 something so
let's just go down to 25 000 which is probably not going to happen today but we're going to continue
and then at this point we're going to tell it how much cash we want to invest at the 25 000 price so
at this point if you want to keep 150 bucks go for that or maybe we want to do something like 5 000
and if you wanted to invest five thousand dollars into bitcoin at the 25 000 price point then that's
what you do to set a limit order and you also need to be aware that the limit order is only going to
fully execute if the specific amount of money that you set actually hits as far as the market value
goes so for instance if you were buying and it was at thirty six thousand dollars a piece per bitcoin
but you only wanted to buy it thirty four thousand then the only way that it's really going to
execute is if the bitcoin price goes down to 34 000. otherwise it's just gonna sit there floating
and nothing's really going to happen unless that specific price that you set is actually met in the
market value and just be aware that whenever you are going to place an order in the cryptocurrency
world they're open 24 7 seven days a week and there's never a break unlike the stock market
that does have an actual schedule and holidays off so just keep that in mind the crypto world is
always open and that is how the limit order works versus the market order the limit is going to set
exactly how much you're buying at a certain price or you can do the opposite where you're selling so
you want to sell it at a certain price and then the market order you're either buying or selling
at exactly that price that it is right then and there right when you execute and so you can't
really control that you can just get a general idea of what it's costing and then you can invest
that way so those are the two types of orders we've got market orders and limit orders and to
access them once again just click on the top right and that is exactly where they are and that's
where you can find them for cryptocurrency now if you are investing in stocks there are a lot more
different order types but you can also find those options by clicking on the top right now that's
how you can buy and sell cryptocurrency using the robinhood app just be aware that there is a lot of
risk associated with this type of investing it's obviously very very volatile because we've seen it
go up significantly and we've also seen it go down significantly so just do your own due diligence do
your research and know that there is a lot of risk when it comes to investing especially in
this high volatility market that we're in right now and if you are new to the robinhood app i
do have an affiliate link in the description below where you can get a free share just for signing up
now it's probably going to be pretty low like worth less than 10 bucks but it's worth a shot
because sometimes you can get one that's worth over 200 bucks so give it a try if you're new to
robin hood and also my name is jason i'm with the honest finance channel and i make a lot of videos
on different topics that'll give your life and your finances more value so feel free to subscribe
if you do have an interest in this type of content but thanks for watching have a great day