Before the recent launch of its own digital wallet for users of cryptocurrency, Robinhood users could only move their private keys to Coinbase. Its motto was, “not your keys, not your coins.” However, it didn’t give many details about the wallet. So, here are a few facts you should know about the new wallet:
Limitations of Robinhood’s crypto wallet
The Robinhood crypto wallet offers increased security and ease of use for users, but it has a few limitations. Before, customers could only purchase and sell crypto in the platform, not spend it. This limited the use of Robinhood. Users could not store NFTs in the wallet, and they were not able to send and receive crypto via QR code. Currently, the platform does not support staking.
Despite the lack of accessibility, users can scan QR codes to send and receive crypto from an external wallet. The service also supports mandatory 2-factor authentication and gives users an estimate of how much their crypto is worth in U.S. dollars before completing a transaction. Still, some users may find the service difficult to use. While the features of Robinhood’s crypto wallet are impressive, some users may find them unappealing.
Requires a certain number of confirmations before being credited to your account
Depending on the type of transaction, a digital asset deposit may require a specific number of confirmations before it is credited to your account. To do this, it must wait for the relevant block to be mined, a process known as mining. As a result, the deposit receives 1 confirmation and more confirmations with each subsequent block, making it more permanent and irreversible. The rate at which each block is mined differs from one blockchain to another.
Cost of transferring crypto from Robinhood to Coinbase
You may want to consider transferring your crypto from Robinhood to Coinbase if you have already opened a Robinhood account. Both services offer similar services, but Robinhood only trades in crypto, while Coinbase offers more than fifty different cryptocurrencies and a personal wallet. If you’d like to transfer your crypto to Coinbase, you can do so by following a few simple steps. Here’s a quick look at each service.
Before you can transfer your crypto from Robinhood to Coinbase, you need to sell your current crypto assets in your Robinhood account. Then, you’ll need to move the money to a bank account, and then repurchase the crypto assets. This process can take several days, and you could potentially face capital gains tax issues if you sell your crypto for a profit. You may also want to consider selling part of your crypto while moving your cash.