Since the introduction of Bitcoin in 2009, digital currencies have exploded. Now, there are many different types of cryptocurrencies, tokens, and other digital assets that are constructed from a blockchain.
As Bitcoin and other crypto gained popularity globally, exchanges and platforms for buying, selling, trading, and storing these coins and tokens have also become widespread.
Since crypto provides a hedge against traditional financial institutions and systems, the most important aspect of owning crypto is protecting it. As a bank doesn’t hold it, you are in charge of its safety.
In this post, we will show you how to transfer your crypto from Robinhood—one of the world’s largest and most popular crypto exchanges and trading platforms. We will show you how to transfer crypto from this exchange to a cold wallet for safe storage and give you examples of electronic and non-electronic cold wallets.
Crypto Security
When you keep your crypto on an exchange, you’re exposing yourself and your assets to security risks.
Hackers and scammers look at exchanges as targets since they “hold” a large amount of crypto at a time. Of course, many of these exchanges, like Crypto.com, Robinhood, and Coinbase have safety measures and protocols in place to do their best in protecting your personal information and crypto.
But, whenever anything is online, like an exchange or a hot wallet for that matter, it is vulnerable.
Back in 2014, Mt. Gox was one of the biggest Bitcoin exchanges. It was hacked and lost 740,000 Bitcoins, which was worth around $375 million at the time! This shook the digital currency world to its core as nothing this major had occurred before.
Shortly after, in 2019, Binance also had a major hacking incident that led to over $40 million worth of BTC being stolen, along with personal information, verification codes, and other details!
Cold wallets are the only place to safely store your crypto.
Move Your Crypto from an Exchange to a Cold Wallet
What sets a crypto cold wallet apart from a hot wallet or exchange is that it is not connected to the internet. This makes them immune to hacking.
It’s important to understand that there are variations of hardware cold wallets. They are devices that can be electronic, like Ledger, CoolWallet, and Trezor, or non-electronic, like Material Wallets or Tangem. These types of cold hardware wallets store your private keys offline.
Moving your crypto from an exchange onto a cold wallet is vital for your security and we are going to show you just how to do it!
What to Consider Before Transfering Crypto From Robinhood to a Cold Wallet
1. Security Considerations
Before buying crypto and transferring it, you want to make sure that you are using a secure internet connection. Never use public Wi-Fi networks, and consider using a VPN for extra security.
2. Device Requirements
To transfer your crypto safely, you will need to have your cold wallet set up and linked to the exchange (if required). Review that the exchange can be paired with the cold wallet, and accepts the certain crypto that you wish to transfer. Some hardware devices need USB connections and software pairings that require a desktop computer or mobile device.
3. Know Your Investment Goals and Objectives
Have a clear view of what you are planning to do with your crypto. The most common plan is to hold a long-term investment, but if you are an experienced trader and plan on moving assets daily you might consider other options. These decisions will influence which wallet is best for you.
Robinhood at a Glance
Before getting started, it is important to note that Robinhood Exchange complies with US regulations. This means that proof of US citizenship is required for opening an account.
In the EU, a separate exchange has been opened, called Robinhood Crypto, which allows all EU citizens to buy, sell, and trade crypto but has not yet placed the ability to transfer crypto to other wallets.
This results in you having to leave your crypto on their platform and not being able to move it into the wallet of your choice.
Step-by-Step: Moving Crypto from Robinhood to an Electronic Wallet
To demonstrate how you can transfer crypto from Robinhood to an electronic cold wallet, we are going to use Ledger Nano as an example.
➡️Connect your Ledger Nano to your computer using the USB cable and complete the set-up by following the instructions.
➡️Install the Ledger Live app on your mobile device or web browser.
➡️Add an account to be able to receive crypto (make sure that you add Bitcoin to receive BTC, Ethereum to receive ETH, etc.)
➡️Generate a receiving address by hitting the “Receive” tab in Ledger Live. Then select the cryptocurrency, and hit “Continue”.
➡️Your Ledger Nano will now display the receiving address. Verify that the address matches the one shown on the physical device and Ledger Live.
Once your hardware wallet is ready to receive crypto, you can now make the transfer from Robinhood to your Ledger Nano wallet.
⚠️To transfer crypto with Robinhood, you must verify your identity and enable two-factor authentication (2FA). This process can take up to 5 business days.
1. Go to the Crypto Detail Page and select the cryptocurrency that you want to send.
2. Click on the “Send” button to begin the transfer process.
3. Enter the Amount of Crypto you want to transfer.
4. Enter or paste the receiving wallet’s address (generated from your cold wallet).
5. Review details and hit “Submit” to complete.
Moving Crypto from Robinhood to a Non-Electronic Wallet
As a non-electronic wallet, we will use the Material Bitcoin cold wallet as an example to demonstrate how to receive crypto from Robinhood.
Using a non-electronic cold wallet, like Material Bitcoin, is much easier and simpler than other digital wallets. Usually, non-electronic wallets don’t need to be pre-set, or paired to a separate app.
With your Material Bitcoin wallet, simply follow the steps above to transfer crypto from your Robinhood account.
When prompted to add the receiving wallet address, you can manually enter it, as it’s printed on the metal card, or scan the QR code to copy and paste it into your Robinhood app.
That’s it! There are no other steps. It could not be any easier.
To make this even more straightforward, you can purchase supported crypto directly from the Material Wallet. This is ideal for new investors who don’t want the extra hassle or complexity of using an exchange but want to start investing in crypto.
FAQs
Should I Move Crypto from Robinhood to a Wallet?
- Moving crypto to a wallet from an exchange will give you enhanced security and control over your assets.
Does it Cost to Transfer Crypto from Robinhood to a Cold Wallet?
- Transferring crypto from Robinhood has network fees and can alter depending on the day and market status.
Does Your Crypto Still Grow in a Wallet?
- Yes, your crypto can still increase in value when kept in a wallet. Storing in a crypto wallet doesn’t pause the growth or decline in the value of your crypto.
Is It Safe to Leave Crypto on an Exchange?
- No, leaving crypto on an exchange is risky. Using a cold wallet is always a safer option, especially for long-term holding.
Why Won’t Robinhood Let Me Send All My Crypto?
- Robinhood has limits set in place for amounts that can be transferred, as well as geographical restrictions. Please check the guidelines before making any transfers.
0 Comments