What Robinhood Charges When You Sell Cryptocurrency
Robinhood does not charge a commission to sell crypto
When you sell cryptocurrency on Robinhood, you pay no separate commission fee. Robinhood makes money on crypto trades through the spread — the difference between the price you see and the actual market price. This spread is built into every buy and sell price the app shows you, so you do not see a line item for it on your confirmation.
The spread varies depending on market conditions and which cryptocurrency you are trading. Bitcoin and Ethereum, the most heavily traded coins on the platform, typically have tighter spreads than smaller or less liquid coins. During volatile market hours, spreads widen, meaning you lose more to the difference between what Robinhood pays and what it charges you.
You also owe capital gains tax on any profit when you sell, but that is a tax obligation, not a Robinhood fee. Robinhood sends you a tax form (Form 8949) at the end of the year listing all your sales.
Key Takeaways
- Robinhood charges zero commission on crypto sales, but you pay an invisible spread built into the price you see.
- The spread is wider on less popular coins and during times of high market volatility.
- Bitcoin and Ethereum spreads are typically smaller than spreads on altcoins because they trade more frequently.
- You are responsible for reporting capital gains tax on any profit, which Robinhood reports to the IRS on Form 8949.
How the spread works in practice
When you look at the price of Bitcoin on Robinhood, that price already includes Robinhood's cut. If the real market price of Bitcoin is $45,000, Robinhood might show you $45,050 when you buy and $44,950 when you sell — a $100 spread on a single coin. You never see that $100 listed as a fee; it is simply the price difference.
The spread changes throughout the day. During market hours when many people are trading, spreads narrow because there is more liquidity. Late at night or on weekends, spreads widen because fewer traders are active. If you sell during a time when few people are trading, you will see a wider gap between what you could theoretically get and what Robinhood actually pays you.
Robinhood does not publish its exact spreads, so you cannot know the precise cost before you sell. You can compare Robinhood's quoted price to other exchanges or price trackers, but by the time you see the difference, the market has usually moved.
Comparing Robinhood to other crypto platforms
Other platforms charge differently. Coinbase charges a flat 1.49% to 3.99% commission on buys and sells, depending on your account type and payment method — a visible fee you see before you confirm the trade. Kraken charges between 0.16% and 0.26% per trade. Gemini charges 1% on most trades but offers 10 free trades per month for active traders.
Robinhood's spread model can be cheaper or more expensive than these commissions depending on market conditions. On a $1,000 Bitcoin sale during active trading hours, Robinhood's spread might cost you $5 to $15. The same trade on Coinbase would cost $15 to $40. But during low-liquidity times, Robinhood's spread could exceed what a flat commission would cost.
The advantage of Robinhood is transparency in one direction: you know exactly what price you are getting. The disadvantage is you cannot see the spread cost separated out, so it is easy to underestimate what you are actually paying.
Tax reporting when you sell
Robinhood tracks every crypto transaction you make and reports the details to the IRS. At the end of the tax year, Robinhood sends you Form 8949 (Sales of Capital Assets), which lists the date you sold, the amount you sold, your cost basis, and your gain or loss.
You use this form to report your capital gains on your tax return. If you sold at a profit, you owe tax on that profit. If you sold at a loss, you can use that loss to offset other gains or up to $3,000 of ordinary income in the same year.
Robinhood also reports your transactions to the IRS electronically, so the IRS will know if you do not report them on your return. Keep your own records of all trades in case there is a discrepancy with Robinhood's report.
Fees Robinhood does charge for crypto
While Robinhood charges no commission on sales, it does charge other fees in specific situations. If you transfer crypto out of Robinhood to another wallet or exchange, Robinhood charges a network fee — the cost to process the transaction on the blockchain. This fee varies by coin and current network congestion; Bitcoin transfers typically cost $10 to $30, while smaller coins may cost less.
Robinhood also charges a fee if you want to withdraw cash instantly to your bank account instead of waiting for the standard settlement period. Instant transfers cost 1.5% of the amount you withdraw, with a minimum of $1 and a maximum of $50 per transfer.
There are no monthly account fees, no inactivity fees, and no fees for simply holding crypto on Robinhood.
When spreads cost you the most
The spread hits hardest when you trade small or new cryptocurrencies. Coins with low trading volume have wider spreads because fewer buyers and sellers are active. If you buy a coin that trades only a few million dollars per day, you might see a 2% to 5% spread, which is far more than Bitcoin's typical 0.1% to 0.3%.
Spreads also widen during market crashes or rallies. When Bitcoin swings $2,000 in an hour, Robinhood widens its spread to protect itself from being caught on the wrong side of the price movement. This means the worst time to sell — when you are panicking — is also the time when the spread costs you the most.
Weekend and after-hours trading also carries wider spreads. If you sell crypto on a Sunday morning, you will pay more in spread than if you sell on a Tuesday afternoon during U.S. market hours.
How to minimize what you pay
Sell during U.S. market hours when trading volume is highest. This is typically 9:30 a.m. to 4 p.m. Eastern Time on weekdays. Spreads are tightest during these hours, especially for major coins like Bitcoin and Ethereum.
Stick to the most liquid cryptocurrencies if you want the tightest spreads. Bitcoin, Ethereum, and a handful of other major coins have spreads measured in tenths of a percent. Smaller coins can have spreads five to ten times wider.
Avoid selling during market volatility if you can wait. If the market is swinging wildly, spreads widen. If you can wait for calmer conditions, you will pay less in spread cost.
If you plan to move crypto off Robinhood, factor in the network fee. For some coins, that fee might be large enough that it makes sense to sell on Robinhood and move the cash instead of transferring the coin itself.
Frequently Asked Questions
Does Robinhood charge a fee when I sell crypto?
Robinhood charges no commission, but you pay a spread — the difference between the buy and sell price. The spread is built into the price Robinhood shows you and varies based on the coin and market conditions.
Why is Robinhood's price different from other exchanges?
Robinhood sets its own prices based on its spread model. Other exchanges may show different prices because they use different pricing methods and have different liquidity. The spread is how Robinhood makes money instead of charging commissions.
What happens if I transfer crypto out of Robinhood?
Robinhood charges a network fee to send crypto to another wallet or exchange. The fee depends on the coin and blockchain congestion. Bitcoin transfers typically cost $10 to $30. You do not pay this fee if you sell the crypto on Robinhood instead.
Do I owe taxes when I sell crypto on Robinhood?
Yes. Any profit is subject to capital gains tax. Robinhood reports all your sales to the IRS on Form 8949 at the end of the year. You report this on your tax return and pay tax on the gain.
Is Robinhood cheaper than Coinbase for selling crypto?
It depends on the coin and market conditions. Robinhood's spread on major coins is often cheaper than Coinbase's 1.49% to 3.99% commission, but spreads widen during low-liquidity times. For small or volatile coins, Robinhood can be more expensive.