The short answer is that it depends why you want to buy Bitcoin. For example, Coinbase offers more than 90 tradeable coins. But if you're thinking of putting some of your money in smaller, up-and-coming cryptocurrencies, you might want to look elsewhere. If you want to invest in Bitcoin and the other most popular digital assets, Robinhood probably has what you need. But there aren't many other reasons to use Robinhood for your cryptocurrency needs.įinally - and this point won't apply to investors who only want to buy Bitcoin - more avid cryptocurrency traders will find that there are other platforms with far more cryptocurrencies to choose from than the seven Robinhood offers. If you buy Bitcoin on Robinhood and it goes up in value, you can sell it and make money. It is mainly a place where you can buy, hold, and sell Bitcoin and a few other types of cryptocurrency. Robinhood also offers far fewer educational resources and other features. It doesn't have nearly as much functionality as most leading cryptocurrency exchanges do. In other words, you can't send your Bitcoin to another cryptocurrency wallet, spend it on real-world purchases, or receive Bitcoin from other people. Drawbacks of using Robinhood to buy Bitcoinīy far, the biggest drawback to Robinhood's cryptocurrency trading platform is that all you can do is buy, hold, and sell your cryptocurrencies. With many other cryptocurrency exchanges, not so much. Many people look at Bitcoin as an addition to their investment portfolios, so it makes a lot of sense to keep all of your investments in one place.

There's also value in having your cryptocurrency holdings and stock investments in the same easy-to-use app, and Robinhood certainly lets you do that. To be fair, Robinhood makes money from the spread between its current buy and sell prices, but that's it - no other fees apply.

And that's on top of a markup, or spread, you pay over the current market price. For example, Coinbase charges a 1.49% trading fee for most transactions, so if you want to buy $500 worth of Bitcoin, you pay about $7.50. Specifically, many of Robinhood's top competitors have expensive and somewhat hard-to-understand pricing structures. Robinhood pioneered commission-free stock trading several years ago, and while its competitors have largely caught up to the company's pricing structure in the brokerage side of the business, the same cannot be said of cryptocurrency trading. Benefits of using Robinhood to buy Bitcoin Here's a rundown of the key advantages and disadvantages of using Robinhood to buy Bitcoin. Like all cryptocurrency trading platforms, Robinhood isn't the best choice for everyone. But you can also buy Bitcoin and six other cryptocurrencies directly through the app. Robinhood is best known as the stock trading app that pioneered the concept of commission-free trading several years before most brokerages got rid of their trading costs.

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