you know in the past you used to be able to buy and sell cryptocurrency on robinhood but
you didn't actually own that cryptocurrency that is until recently with the introduction of the
crypto wallet but if you're interested in buying or selling crypto on the robinhood app that is
what this video is all about here's what we're going to do specifically we're going to go over
how to buy crypto on robinhood how to sell crypto how to actually use the new wallet feature which
means you can send and receive crypto for goods and services or between family and friends however
you want to do that and last but not least what are the fees and the hidden fine print that you
need to know about that and more discussed in today's video so if you're ready to get started
and you find value in today's video all i ask just tap the like button on the video i appreciate it
very much let's start off with how do you actually buy crypto in this particular app now i'm gonna
put up the phone right here on the screen so that way you can follow along with me but if you don't
actually have the robinhood app yet make sure you do that first otherwise you can't really follow
along with me in fact right now when you get started with robinhood they offer you a free stock
it's a free fractional share of the top 18 leading companies in america right now that you can choose
from and that value is between five dollars and two hundred dollars get all the details and get
started today link down in the description below so first things first once we get that out of
the way let's open up the robinhood app and see what's going on so let's start off with buying
cryptocurrency but i got something a little bit special for all of you if you look at the chapters
of this video down below or on the side of the video depending on how you're watching this video
i have time stamps so depending on what you're looking for all of that is laid out in the
chapters you can hop around the video for whatever works best for you so let's start with the buying
and we're going to open the app up and right here we have buying power that is the number one first
thing that we need to make sure that we're doing before we do anything else so you can see the
buying power in my case is nine dollars and four cents so 90 bucks i can do all the way up to 90
if i want to or i can only do a dollar it doesn't matter how much you want to do but you got to make
sure there's buying power if there's not you're going to have to transfer some money in from your
bank account in order to do that i have that in my full tutorial video i'll link it up above in the
info card as well as down below in the description you can watch that video after this one if you're
not familiar on how to do that so now that we have the buying power all set up let's buy some
crypto now the first thing you could do just to make it easy if you let's say you don't have any
crypto yet and you're just starting off is at the bottom of the app right down below there do you
see that little magnifying glass that's what we want to tap on tap on the magnifying glass
and right here we are now there's a couple ways you can do this right here at the top you see
the search bar if you know the particular crypto that you want to buy you can just simply search
right there and type it in or if you want to get some ideas and look around and do some research
they have this all on the trending list right up here above you can see newly listed crypto right
there's crypto in general you got some altcoins over here you get some bitcoin family whatever you
want to do so for example if i hit let's say newly listed crypto here we are we've got uniswap chain
link compound shiba inu blah blah blah but let's say you want to purchase a particular crypto in
the case of today let's just um have some fun and buy some litecoin for example so i'm going to come
up here and i'm going to type in l-i-t-e and right there it is litecoin at the top we can tap on that
that'll take us over to this screen letting us know how much money it's going for right now
one light coin is going for 58 dollars and 42 cents now you don't have to put up all 58
you can buy a fraction of a light coin and invest whatever money that you can afford
into this particular crypto so what we're gonna do is right here at the bottom you see the pink
button that says buy all you got to do is tap it hit buy and then this is a very very critical
point a lot of people don't quite understand this they just go in and they'll put a dollar
they'll put a thousand dollars they'll put whatever they want to put in there and hit
by and be done with it but there's something that you need to know there's a difference between a
market order and a limit order let's first go over what a market order is because if we put in any
amount right now let's say i put in one dollar and i hit review and submit i'm buying litecoin
at the market order so what a market order is is what the price the overall market price of that
particular cryptocurrency is when you execute the order but let's say you don't want to deal with
that you want to get it at a very particular price well if you come up here to where it
says usd with a little down arrow that little pink thing at the very top right hand side of your app
tap on that and then check out what you can do you can of course do a recurring investment which
means every day every month every week it's going to continue to buy based on your buying power or
you can do a limit order so a limit order is different in a market order because you get
to name your price so if you tap on limit order what you could say is okay if the market price
is going for 58.71 i think it's going to go down today and i want to make sure that i'm getting
my best bang for the buck on the money that i'm putting in so i'm going to set the limit order to
57 now that may not happen but let's just say we think it's going to be a crazy day in the market
you could say i don't want to buy whatever i'm going to put into this unless this hits 57 or less
in the given time of my limit order so that's a good way to do it so that way you can take
advantage of opportunities when you're buying and when you're selling as well so that's how you do
the limit price and that's very important versus the market order now for our example
today we're actually gonna buy some litecoin i'm gonna do one dollar at simply the market price
don't really care about doing the limit order for a dollar so what i'm going to do is hit review
and then i'm going to swipe up to submit it's sending my order and in a few seconds there it
is litecoin order completed amount is a dollar one so i did put in an extra penny for whatever
reason price of execution was 58 and then you can see my fractional share and my fractional piece
of the litecoin is 0.0170273 whatever so that is what i got i can hit done and then you can scroll
down here and there is my holding total quantity my current value and the average cost of what i
paid for it and so on and so forth that is how you buy cryptocurrency within robinhood but how do you
sell the crypto well we're going to turn right around and sell it right here on the video right
now selling does the same thing as buying did you can do a limit order or you can do a market order
and a limit order for when you sell is you want to get the most money for what you're selling it for
so you could say hey i think the price is going to continue to go up but i want to sell it at
a certain point so what i want to do is i want to say this is going to go up to 59 if it goes up to
59 in the time limit of my limit order i want you to sell my litecoin and that's what it'll do if it
never hits 59 the limit order will cancel out but i'm just gonna do a market order because it's easy
it's fast and it's simple so i'm gonna hit sell at the very bottom of the screen it's gonna take us
over here and then you have a choice now let's say you have like a thousand dollars within litecoin
if you have a thousand dollars you could just say i only want to sell maybe like half of that so i'm
going to sell 500 today you can do that or you can sell it all now in the case of my miser little 99
cents i'm just gonna hit sell all which there it is 99 cents i lost a penny on the deal but
i'm willing to do that so i can help you guys out in today's video i can live without a penny
so all i got to do here i hit sell all i'm going to swipe up to submit it's sending my order and
uh in a few seconds there it is sold the litecoin and now that 99 cents is back in my buying power
but here's a very critical point that a lot of people miss when you sell cryptocurrency you don't
immediately get to take the money and withdrawal it into your bank account and be done with it in
the same day and here's why it's something called instant cryptocurrency settlement you're going to
receive the proceeds from your sales to purchase stocks options or other crypto immediately and
that'll show up in your buying power within your robinhood app but you cannot transfer it into your
bank right away because there is a settlement period that still applies when you withdraw
the funds from your robinhood crypto account to your bank account this means you won't be able to
withdraw the proceeds from your sales for five business days so if you're trying to like get
rich quick or something like that and transfer all your money in right away you got to be patient and
always be careful with cryptocurrency never invest money that you're not willing to lose but then
if you do make a profit know that you have a five day settlement period that's just the way it works
and then after those five days if you want to transfer that into your bank account by all means
it's your right to do it so here's the cool part the new thing within robin and that is the ability
to have wallets i mentioned at the beginning of the video in the past you could just buy crypto
and you basically were investing in it your goal was okay if it goes up i make a profit and i sell
and i make a profit that's great but now you can actually use crypto within robinhood that's a huge
deal so how you do that if you scroll down from my example here in ethereum i have .48 ethereum at a
value of 789 so you can see these two buttons right here send and receive now if i wanted
to send you ethereum right now i could hit that send button and literally send you maybe um we we
struck a deal and i said hey i'll pay you some ethereum for what you've done for me i can hit
send send it over to your wallet address and boom that would be done vice versa let's say i went
and mowed your lawn for you did it nice and i want like 50 bucks for that right so i'm gonna say hey
here's my ethereum wallet address send me 50 worth of ethereum to this wallet address and that would
allow you to do that all within the power of the robinhood app but here's the thing when you first
get started even though you have a crypto account with robinhood and you've been buying and holding
and all that kind of fun stuff if you hit one of these buttons which i'll do right now here's
what's gonna happen it's gonna pop up with this promotional screen your wallet your crypto okay
let's scroll down below and see what's going on here you can choose your crypto to send okay fine
transfer crypto with ease okay fine but here's the kicker you have to do some getting started
setups you have to verify your identity which takes approximately five minutes
you have to set up two-factor authentication so that can keep you protected from scammers
they're the worst thing ever right and then you can then activate crypto transfers you can see
that's now grayed out and it's grayed out until we get the chance to do those other first two steps
so all you have to do start with number one click on that and then it'll say what's the
document type to verify your identity you can choose between a passport driver's license
or some other government id i'm going to choose a driver's license and then that'll take me over to
here and then submitting a photo of your driver's license we need the photos of the front and back
and that is to verify your identity so they can make sure you are not a scammer and the photo
must be a valid driver's license or some type of permit clear color image all that kind of good
stuff so what you want to do is hit capture that's now going to take you over to the camera on your
phone where you line up your driver's license and literally take pictures of your driver's license
now i'm not gonna do that live here on video because i don't want any of you to know my info
i'm just saying right and the next step is set up two-factor authentication we're gonna click
on that and then here's what we need we need to verify our phone number if we haven't done that
already we need to set up an authenticator app you can use something like microsoft or
google authenticator or something like that free on the app in the google play store and
then verify your email which you can see i've already done two out of the three steps so
i'm gonna set up the authenticator now for me personally what i'm gonna use is i'm going to
use google authenticator because i have done it before in the past it's very easy to use very
straightforward and what will happen is it will ask you to link that up to robinhood giving you
a text message so you can plug in the verification code and then boom you're going to be all set up
at that point it's going to ask you to verify your authenticator app by looking at whatever number
it's providing you and that number should match up to what they have in their system that's how they
verify beyond just your name and password to make sure that nobody's hacking into your account and
there we go so we verified the identity and set up two-factor authentication and now we wait and
as the days tick on this is what you're gonna see it could take anywhere from one to three business
days to set up your wallet so you're gonna have to be patient now i've already done this in advance
so i'm gonna save you some time and hop right to the point after a while this little screen will
go away and then guess what happens so you'll hop back into one of your cryptos in my case i'm doing
ethereum for the example of today's video and instead of saying we're reviewing your info it'll
say this protect your crypto all you're going to do is hit acknowledge it's going to then take you
over to this screen and say hey all you got to do is finish the setup i'm gonna tap activate crypto
transfers it's now gonna take me over to the final step which is a confirmation screen and now my
friend you have the ability to send and receive cryptocurrency courtesy of your wallet i could
do this ethereum if i want to but for today's example on the video because you know i want
to keep it real and give you actual examples to make your life easier i am going to receive some
bitcoin so i have some bitcoin over in another wallet off of robinhood and what i'm going to
do is i'm going to take that money that bitcoin it's only about 20 bucks i believe and i'm gonna
transfer that money into my robinhood account by hitting the receive button here and using that to
see how this actually works now because right now i don't hold any bitcoin within my robinhood app
i'm going to go to the magnifying glass as we looked at earlier i'm going to type in bitcoin
and then it's going to take me to this right here you can see my position says quantity of 0 and my
value is also 0 as well i'm going to hit receive because i am trying to get money into the account
not trying to send anything away and then it's going to give you this qr code as well as your
wallet address this is a very important thing to keep yourself secret i'm blocking some of this out
for my own protection but all you have to do is give this or copy this address using the button at
the very bottom of the app and sending that over to whoever or whatever service you're requesting
that cryptocurrency from so i'm doing it amongst myself but let's say it's you and i i could send
you this code and say hey give me some money and if you decided to do that you could send it
to this address now this isn't the robinhood app but this is coinbase and what i'm going to do is
i'm going to transfer 20 from the other account so this is actually the person that you've requested
that money from this is kind of what they could do if they had coinbase they would come through
they would know your wallet address because you just shared it with them they could type that in
to this is the wallet address i'm trying to send my money to type in whatever amount in my case
it's going to be 20 and then hit withdrawal now based on cryptocurrencies there are fees depending
on what crypto you're sending so make sure you do your own research and know what type of gas
fees or crypto fees or transaction fees you might be up against depending on which cryptos you're
sending and receiving but in this case because i'm receiving i'm just going to relax sit back
and just kind of wait now this does take some time but you can track it in fact robin hood gives you
a link that you can watch to see where it is in the process from whoever's sending it to you
to the point where it hits your robinhood account but then as time goes on you're going to get not
only a notification within your app you're also going to get an email from robert heard saying
hey you've received some cryptocurrency kind of exciting right that is how this works to receive
cryptocurrency in your robinhood wallet now let's say you want to send something
to somebody you come down here to your position hit the button send and then it's going to say
give me the wallet number that you're looking for you gotta either scan their qr code or you can
enter it manually in which case i would recommend you copy because crypto addresses can be very long
um if not you could just type in whatever you know thing it is you know whatever that number that
associates with the person that you're sending your crypto to whatever their wallet address is
you type it in here and then you hit continue and then it'll take you through your steps to actually
send that crypto out and this is kind of a cool way to be able to say all right i am at a store
for example and they accept crypto as payment i want to pay in crypto you could literally come in
here and let's say they accept ethereum in my case and i'm buying like a five dollar cup of coffee i
could hit send it would pop up with this camera image i scan their qr code i pay for the coffee
and on my way i go that's the power of the future of cryptocurrency as payment let's talk about
the fees that you need to know about and this is what's very interesting about robinhood right here
you are on their website and i want to point this out because this is really kind of interesting
right now they have a zero percent zero dollar fee on cryptocurrency transactions and purchases and
things like that in fact they compare it to other exchanges where coinbase takes a 2.99 fee gemini
same thing and venmo at 2.30 cents robinhood is zero so it's free to do all this stuff and you
might be thinking to yourself wait a second what's the catch how are they making money they wouldn't
just do all this stuff for free right what's the fine print well i'm glad you asked let me
hop right over and show you and what i'll do is i will link this down in the description below
so you can go over and check it out for yourself so you can go in detail if you wish to do so but
here's how they actually make money on robin hood now of course they have commission free trades
commission free crypto and that zero percent zero fee crypto that i shared earlier so if
you're not to pay anything how do they make money well here are the ways rebates from market makers
and trading venues robinhood gold subscription if you decide to upgrade margin interest stock loans
and income generated from cash and cash management so what they're doing on the back end is that they
basically route your payment for order flow and when they do that in these type of examples they
get a little bit of a kickback as a result of that and that's how they're able to make money
so that you the consumer don't have to worry about actually paying any money to use this app and this
is very helpful compared to things like coinbase where you have that little bit of fee that you
got to pay every time and that erodes your ability to grow your portfolio because every time you buy
something you got to worry about this dang fee that you have to pay so because they do it this
way they don't charge you the consumer for using their app they make money in other avenues same
thing with the ability to buy fractional stocks and fractional shares on the stock market a lot
of the companies back in the day a lot of people are starting to step away from this but they used
to charge you a commission in fact i remember back in the day i had a particular brokerage and
anytime i want to buy any share of stock it came with a 9.99 commission fee i would just have to
pay an extra 10 bucks no matter what i was buying or selling in the stock market and that is a lot
of money to be throwing out the door so luckily thanks to robinhood they found other ways to make
money so that you and i the consumer can enjoy our trades commission and fee free so if you want to
learn more about how to use robinhood especially in the stock market i recommend checking out this
video next the full tutorial on robinhood and until next time we'll see you on the next video