How to Sell Crypto on Robinhood: 2026 Guide
Knowing how to sell crypto on Robinhood can mean the difference between locking in profits and watching gains evaporate. Whether you want to cash out Bitcoin, sell your Dogecoin position, or convert crypto to USD for a major purchase, the process is straightforward once you know the steps.
Here’s the thing: 95% of retail traders lose money in their first year. A big reason? They sell at the wrong time, driven by emotion rather than strategy. This guide walks you through the exact process to sell cryptocurrency on Robinhood, plus the tax implications and smarter alternatives to panic selling.
Can You Sell Crypto on Robinhood?
Yes. Robinhood allows you to sell crypto instantly with 0% commission on trades. The platform processes your sell order and converts your crypto to USD, which then sits in your Robinhood account balance.
Robinhood Crypto Features Overview
Robinhood has expanded significantly since launching crypto trading. The platform now supports over 45 digital assets in the U.S., making it one of the more accessible options for beginners.
Key features for selling include:
- Commission-free trades (you pay through the spread instead)
- Market and limit orders for different selling strategies
- Stop orders to automate your exits
- Instant access to USD after selling (within your Robinhood account)
Supported Cryptocurrencies
You can buy, hold, and sell popular cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), XRP, Avalanche (AVAX), Shiba Inu (SHIB), Litecoin (LTC), Chainlink (LINK), and more.
One caveat: not all coins are available in every state. Some may require additional regulatory approval depending on where you live.
Selling vs Transferring (Important Difference)
This distinction trips up many beginners. Selling converts your crypto to USD within Robinhood. Transferring moves your actual crypto to an external wallet without converting it.
If you want USD in your bank account, you need to sell first, then withdraw the cash. Transferring crypto to another wallet keeps it as crypto and doesn’t give you spendable dollars.
How to Sell Crypto on Robinhood (Step-by-Step)
The Robinhood crypto selling process takes about 30 seconds once you know where to tap. Here’s the exact walkthrough.
Step 1: Open the Robinhood App
Launch the Robinhood app on your phone or access your account through the web browser at robinhood.com. Make sure you’re logged into the account holding your crypto.
Step 2: Navigate to Your Crypto Holdings
Tap on the account icon (bottom right on mobile) and select your crypto holdings. You’ll see a list of all digital assets you currently own, along with their current market value and your profit/loss.
Step 3: Select the Crypto You Want to Sell
Tap on the specific cryptocurrency you want to sell. For example, if you want to sell Bitcoin on Robinhood, tap on your BTC position. This opens the asset detail screen showing price charts and your position details.
Step 4: Choose Sell Amount
Tap the “Sell” button. You’ll have two options:
- Sell in Dollars: Enter the USD amount you want to receive (e.g., $500)
- Sell in Crypto: Enter the amount of crypto to sell (e.g., 0.01 BTC)
You can also tap “Sell All” to liquidate your entire position.
Step 5: Review and Confirm the Sale
Before executing, review the order details:
- Amount of crypto being sold
- Estimated proceeds in USD
- Order type (market or limit)
- Any applicable fees
Swipe up or tap “Submit” to confirm. For market orders, Robinhood executes immediately at the current market price.
Step 6: Verify Funds in Your Account
After the sale completes, check your account balance. The USD from your sale appears instantly in your Robinhood buying power. You can use it to buy other assets or withdraw it to your bank.
Understanding Robinhood’s Crypto Selling Process
Not all sell orders work the same way. Understanding order types helps you get better prices and avoid surprises.
Market Orders vs Limit Orders
Market orders execute immediately at the current price. Robinhood adjusts market orders to limit orders buffered up to 5% to protect you from dramatic price swings. If the price drops more than 5% before execution, your order cancels automatically.
Limit orders let you set a minimum price. Your crypto only sells if the market hits your target. This gives you more control but doesn’t guarantee execution.
For most people selling small amounts, market orders work fine. If you’re selling a larger position or want a specific price, use limit orders.
Settlement Times
Here’s where Robinhood differs from traditional brokers. Crypto sales settle instantly within Robinhood. Your USD buying power updates immediately after the sale.
However, if you purchased that crypto using funds from a recent bank transfer, those funds may need to settle first (typically 5 business days) before you can withdraw.
Fee Structure for Selling Crypto
Robinhood advertises “commission-free” trading, but that doesn’t mean free. You pay through the bid-ask spread, meaning you receive slightly less than the displayed market price when selling.
For larger traders, Robinhood offers fee tiers ranging from 0.03% to 0.85% based on your 30-day trading volume. Higher volume equals lower fees.
Withdrawing Cash After Selling Crypto on Robinhood
Selling crypto is step one. Getting that money into your bank account is step two. Here’s how to cash out crypto on Robinhood.
After your sale, go to Account > Transfers > Transfer to Your Bank. Select your linked bank account and enter the amount to withdraw.
Standard ACH transfers are free but take 2-5 business days to reach your bank. The daily limit is $50,000.
Instant transfers are available with eligible debit cards and bank accounts. Most complete within 10 minutes, but you’ll pay a 1.75% fee (minimum $1, maximum $150 per transaction).
The reality is: if you need money fast, that 1.75% fee can be worth it. If you can wait, standard ACH saves you money.
Tax Implications When Selling Crypto on Robinhood
Every crypto sale is a taxable event. The IRS treats cryptocurrency as property, not currency. When you sell, you trigger capital gains or losses.
Capital Gains Reporting
Your tax rate depends on how long you held the crypto:
- Short-term gains (held less than 1 year): Taxed as ordinary income, 10-37% depending on your bracket
- Long-term gains (held more than 1 year): Taxed at 0%, 15%, or 20% depending on income
Let’s be honest: most traders don’t think about taxes until April. But understanding this before you sell can save significant money.
Example: If you bought ETH for $2,000 and sold for $3,500, you have a $1,500 gain. Held for 8 months? That’s short-term, potentially taxed at 24% or higher. Held for 13 months? Long-term, potentially 15% or even 0%.
Robinhood Tax Documents (Form 1099)
Robinhood reports your crypto transactions to the IRS. Starting in 2026, brokers must issue Form 1099-DA showing gross proceeds and cost basis for your trades.
You’ll report these on Form 8949 and Schedule D when filing your taxes. Robinhood makes this easier by providing consolidated tax documents each February.
Common Issues When Selling Crypto on Robinhood
Sometimes sales don’t go as planned. Here are the most common problems and fixes.
“Insufficient funds” error: You may be trying to sell crypto purchased with unsettled funds. Wait for your bank transfer to clear (5 business days) before selling.
Order not executing: Limit orders only fill at your specified price or better. If the market doesn’t reach your limit, your order stays open. Consider adjusting your price or using a market order.
Can’t withdraw funds: Robinhood holds funds from recent sales until they settle. Check your “withdrawable cash” amount, which may differ from your total buying power.
State restrictions: Some cryptocurrencies aren’t available for trading in certain states due to local regulations. You may need to transfer to an external wallet first.
Robinhood vs Other Platforms for Selling Crypto
Robinhood isn’t your only option. Here’s how it compares for selling.
| Feature | Robinhood | Coinbase | Kraken |
|---|---|---|---|
| Commission | 0% (spread) | 0-0.60% | 0-0.26% |
| Withdrawal Speed | Instant in-app | Instant in-app | Instant in-app |
| Bank Transfer | 2-5 days | 1-5 days | 1-5 days |
| Coins Available | 45+ | 250+ | 200+ |
| External Transfers | Yes | Yes | Yes |
Robinhood’s advantage is simplicity. The app is cleaner than most crypto exchanges, making it ideal for beginners. The downside? Fewer coins and less advanced trading features.
If you’re considering alternatives to Robinhood, our guide on how to trade with crypto covers crypto-native exchanges with lower fees.
FAQs About Selling Crypto on Robinhood
How long does it take to sell crypto on Robinhood? Market orders execute within seconds. The USD appears in your account immediately.
Can I sell crypto on Robinhood at any time? Crypto markets run 24/7, so you can sell anytime. However, liquidity may be lower during off-hours, potentially affecting execution prices.
Is there a minimum amount to sell? You can sell as little as $1 worth of crypto on Robinhood.
Why can’t I withdraw my crypto sale proceeds? Funds from crypto purchased with recent bank deposits need 5 business days to settle before withdrawal.
Do I pay taxes if I sell at a loss? You still report the transaction, but losses can offset gains and reduce your tax bill. You can deduct up to $3,000 in net losses against ordinary income.
Beyond Manual Selling: Automated Exit Strategies
Here’s what separates profitable traders from the 80% who quit within 2 years: they don’t rely on manual selling when emotions run high.
Studies show 95% of traders sell at the wrong time due to fear or greed. When Bitcoin drops 15% overnight, panic takes over. When it pumps 30%, euphoria clouds judgment.
Stop-loss orders help, but they’re just the beginning. Algorithmic trading now accounts for roughly 70% of institutional trading volume. Why? Because automated systems execute without emotion.
Trade247 offers AI-powered exit strategies that go beyond basic stop-losses. The platform analyzes market conditions in real-time, adjusting your positions based on data rather than gut feelings. Built on Hummingbot infrastructure with over $10 billion in trading volume, it provides the same risk-first protection used by professional traders.
Instead of refreshing Robinhood during every dip, imagine having personalized safeguards that protect your portfolio automatically. That’s the difference between trading manually and trading smart.
For a complete guide on leveraging automation, see our article on how to trade crypto which covers trading bots and automated strategies.