Dogecoin, as many people are aware, started as a joke. Due to the unstable nature of cryptocurrencies, though, that joke got taken very seriously. Its competitors may still try to make it a joke, but it’s here to stay. I’m going to discuss why you can’t buy Dogecoin on Robinhood in today’s article.
You can indeed buy Dogecoin on Robinhood, though for a time you couldn’t. This was due to the fact that the value of Dogecoin rose 300% at one point, which led to Robinhood restricting its trading.
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The internet has rapidly changed how we deal with money; simple matters like ordering a Venmo card or depositing on Webull cause enough headaches without the worries of cryptocurrency. This blog will explain just what happened and why, as well as whether it’s worth it to buy Dogecoin on Robinhood now.
Why Can’t I Buy Dogecoin on Robinhood?
There are a few moments in cryptocurrency’s brief existence that have already been dogeared in the chapters of history as part of its origin story. One such moment came on January 29 of this year when Dogecoin’s stock soared to over 300 percent.
The news was amazing to those who had Dogecoin already, but for those looking to purchase some on the Robinhood app, they were met with technical issues. The system’s email and virtual assistants were overwhelmed with angry customers demanding the answer to, “Why can’t I buy Dogecoin on Robinhood?!?”
The morning after, Robinhood announced that, due to extraordinary market conditions, they had shut down instant buying options for cryptocurrency, though any crypto that you had could still be traded.
That was the first time.
The second time occurred more much more recently on August 16, when the price experienced a surge first of only 30 percent. At that time, the app reported that they had suffered a crypto trading issue. Soon after, when the surge reached 100 percent, the outage occurred once again.
Should I Buy Dogecoin on Robinhood?
Buying cryptocurrency is a concern not everyone is going to deal with. Their online financial dealings only go as far as using Venmo to transfer money to themselves or others. They’re often too nervous to even give out their social security number.
You can once again buy Dogecoin on Robinhood, though it’s worth knowing a few of the restrictions within which you’ll be operating. Here are some things to know about buying Dogecoin on Robinhood.
- You can only buy and sell Dogecoin on Robinhood.
- Robinhood will not allow you access to your Dogecoin wallet.
- You will not be able to transfer Dogecoin to another wallet.
- You can’t send or receive Dogecoin on Robinhood.
Robinhood allows you to trade most crypto stocks to another broker on their platform. However, with Dogecoin, you can’t move the stock to another wallet. All you’ll be able to do is sell it all and then transfer the money to a bank account.
This creates an even bigger problem, as moving stocks on Robinhood allows you to avoid the taxes. By turning the stocks into cash, it makes them taxable.
The other issue has to do with Robinhood not allowing you to access your Dogecoin wallet. Digital wallets make financial sharing services possible. Without that ability, you are unable to use Dogecoin to purchase other items online.
The good news is that Robinhood makes it completely safe to buy Dogecoin on its platform. While you may take issue with some of the limitations they’ve put on Dogecoin, as well as the fact that they can stop you from selling and buying when they see fit, you at least know it’s secure.
There are other reasons that have to do with ethics that might make you question whether or not to buy Dogecoin on Robinhood. You might think, for instance, that it’s not a commission-based service, as that’s what it advertises.
It’s best to think of it this way: Nothing is actually free. If a product is free, then you are in fact the product. Naturally, Robinhood is benefitting from you using their platform.
It’s owned by two companies:
- Robinhood Financial LLC
- Robinhood Crypto LLC
Their stocks are traded through the financial half of the company, one that is a member of FINRA/SPEC and insured up to a half of a million dollars.
Dogecoin, however, is traded through their Crypto LLC, which is not insured by FINRA/SPEC. If, for some reason, the company should go bankrupt, your cryptocurrency is not insured and you stand to lose it all.
Ultimately, it’s up to you if you want to buy and sell Dogecoin on Robinhood. There are some issues with doing so, and the chance that the trading app may once again cease trading should it rise too high is always a possibility, but at least you know that your trading is secure so long as the company doesn’t go bankrupt.