Many cryptocurrency traders use the Robinhood platform to keep their digital assets, among other things. However, there are situations when you can’t sell crypto on Robinhood. These situations are perfectly normal and can occur on other platforms too. Usually, any trade restrictions are part of the terms and conditions the platform has when it comes to trading.
You can’t sell crypto on Robinhood when your Robinhood financial account is restricted, when there is scheduled maintenance, or if you don’t have enough equity to reach your margin minimum.
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In recent years, Robinhood’s interest in cryptocurrencies trading has increased, and like with other platforms, it can happen you are not allowed to access your account and make the trade. For example, in situations where your financial account will fall under $25,000, and you wish to trade in crypto, you will be asked to deposit more funds. That is due to the fact that your Robinhood crypto account is backed by your Robinhood financial account. Let’s find out what other situations are when you can not sell your crypto on Robinhood.
Robinhood platform is popular among crypto enthusiasts. On this platform, you can exchange crypto, stocks, and exchange-traded funds for free. Many people use Robinhood to buy crypto or just to keep them stored there, but you can also sell any cryptocurrency you have on your Robinhood crypto account. Your crypto assets aren’t part of your Robinhood financial account and they are therefore treated as non-marginable, which means all your crypto needs to be backed up by cash. So if, for any reason, your Robinhood financial account is restricted, so will be your crypto account. Here’s when will access to your fund and crypto trade be limited:
- Instant cryptocurrency settlement,
- Pattern day trading,
- Scheduled maintenance,
- You don’t have enough buying power to place the trade,
- You don’t have enough equity to reach your margin minimum.
When you make a trade on Robinhood, whether it is stocks or crypto, you will receive proceeds at once. Still, the ACH settlement period will still happen if you withdraw assets from your Robinhood crypto account to your bank account. Meaning you will not be able to gain access to your money for five business days.
When trading with crypto on Robinhood, you don’t have to worry about trading limits because these trades are not regulated by FINRA or the SEC like stocks. However, if your financial account is flagged for a Pattern Day Trading, and you wish to trade cryptocurrency that will affect the value of your stocks and cash to dip below $25,000, Robinhood will prevent you from making these trades.
As we mentioned above, cryptocurrency trading is non-marginable, which means it can not count as collateral. That means you will have to back up all your crypto by cash. So if you don’t have enough cash on your account, you will not be able to make a trade.
Another situation when you won’t be able to trade is if your Gold or Instant Robinhood account is at risk of falling below your margin maintenance or minimum balance. Also, you can not make a trade on either of your accounts if it falls under your pattern day minimum.
Even though you can trade crypto 24/7 on Robinhood, there are set time frames when you can not make any trade due to the platform’s scheduled maintenance. The Robinhood platform maintenance will happen every day between 5:29 PM – 5:40 PM ET and 11:57 PM – 12:09 AM ET. You will be able to place a trade, but some delays may happen in your orders. Also, unexpected maintenance for bugs and error fixes can happen, which you will be informed of on time.
You can trade, buy or sell crypto on Robinhood on the web or through the app on your phone. The process is user-friendly and easy. And even though Robinhood still doesn’t have a wallet, you can transfer coins from your wallet to your Robinhood account. Here is how to sell crypto on Robinhood.
|Step 1||Go to a Detail page||Go to a Detail page||Go to a Detail page|
|Step 2||Click Sell in the order window||Tap Trade||Tap Trade|
|Step 3||Enter the amount for selling||Tap Sell||Tap Sell|
|Step 4||Click Review||Tap Order Types||Tap Order Types|
|Step 5||Confirm your order||Select your preferred order type||Select your preferred order type|
|Step 6||Confirm your order||Confirm your order|
|Step 7||Swipe up to submit your order||Swipe up to submit your order|
Selling Crypto on Robinhood vs Coinbase
Both Robinhood and Coinbase are user-friendly platforms that many investors who wish to start with crypto trading find appealing. You can trade other assets such as stocks, ETF, and crypto on Robinhood, while on Coinbase, you can only trade crypto. Also, Robinhood has free trade, so no money will go on fees during transactions, while Coinbase will take a significant amount of your money for all kinds of fees. On the other hand, Coinbase will offer more choices when it comes to coins you can trade with, and it has a wallet, which means you can withdraw your coins whenever you want. As you can see, both platforms are excellent for beginners, and which one you will choose depends on your interests and needs. Another downside of Robinhood is that you don’t actually own the coins – you only invest in them.