Crypto trading is not as easy as some people think it is. A couple of months ago, Robinhood, probably the most popular trading app in the world, started to deny Robinhood account holders from purchasing the crypto by the name of Dogecoin.
Or so it was reported.
Robinhood immediately stated that the company did not place any restrictions on the cryptocurrency in question. That’s despite the fact that many Robinhood crypto users complained about the app denying the Dogecoin trade.
More specifically, Robinhood showed users a ‘pending’ message when they tried to buy some stock from the market.
One Robinhood user mentioned that several others had experienced the platform restricting Dogecoin trades. However, The money-moving and share-buying platform also took to Twitter that anyone could buy and sell Dogecoin, and the company had not put any restrictions.
However, after some time had passed, the exchange-trade service acknowledged that some of its customers did see the ‘transfer pending’ message for a long period of time.
It said that customers should keep refreshing their apps to see corrective changes.
After a series of exchanges with other social media users, the online broker finally updated its services to ‘cryptocurrencies online and fully functional’.
Can you buy Dogecoin on Robinhood?
Robinhood is a digital platform that enables people to become investors in various assets, including cryptocurrencies. The service has always managed to set itself apart from other platforms because there is no price to subscribe to; people with little investing experience can access financial products, including cryptocurrency.
However, sometimes it has to protect its own investments and show to the people that after everything is said and done, Robinhood is a brokerage.
Robinhood provided ample proof of that when it said that even though people can invest in Dogecoin by making purchases trying to pounce on its volatile value, they can’t withdraw funds generated as a result of their investment.
So people can search for Dogecoin, deposit money but can’t benefit from their capital.
In short, yes, you can take the risk and buy Dogecoin. But you can’t use it to buy a house or get Taco Tuesday deals.
Effectively, Robinhood is currently carrying out its operations like a one-way bank. You can deposit and hold, but you can’t withdraw Dogecoin to your private wallet.
If you are still confused about the stuff said above in this article then keep these four points in mind.
Can’t Sell or Buy
Your Dogecoin investment experience is limited to buying and/or selling Dogecoin.
No Doge Wallet
Robinhood does not provide a login to a Dogecoin Wallet.
You cannot transfer Doge to another wallet.
No Transactions From Other People
Robinhood does not allow you to receive or send Dogecoin anywhere.
We already know that the federal government does not like cryptocurrencies. But Robinhood, with its recent policy, has given a clear sign that it isn’t too hot on crypto traders either.
That leads us to our next question.
How do I get my Dogecoin from Robinhood App?
You have to sell your Dogecoin for USD currency. Then transfer the amount to your traditional bank. After that, you can buy Doge on some other exchange such as Kraken or Binance.
But there is no such thing as free lunch. In other words, the IRS treats cryptocurrency the same way it treats stocks. More specifically, you have to pay tax on it.
If you want to avoid that, just hold on Doge.
Why does Robinhood say not enough buying power?
Whether you receive this error on the official site or via email, it usually means you don’t have the ‘extra’ money on top of the money you need to buy the stock or share you are interested in.
More specifically, the more money you have in your Robinhood account, the more buying power you have. Usually, you should have 5% more than the price you have to pay to complete a trade.
If you are interested in a $200 trade or share, then you must have 5% over that amount in your account.
This protects Robinhood in cases where there is a huge market movement right when it executes your order.
Why can’t I buy stocks on Robinhood?
There could be many reasons why you can’t begin trading or buying stocks with your Robinhood account.
ITC Stocks or Warrant
If the stock you are interested in is Over the Counter or Warrant, then Robinhood probably has zero support for it.
More simply, the stock may be undergoing corporate action. Once it’s done, Robinhood may support it again.
Stock is Not Available in Your Country
Sometimes Robinhood puts restrictions on people from certain countries on the type of stock they can buy via the app.
All you can do in this case is to buy from another platform or broker.
Conclusion: Robinhood Crypto Trading App is Annoying
Robinhood is a great (and mostly free) way to introduce yourself to cryptocurrency trades.
Notwithstanding recent news about Robinhood restricting access to certain cryptocurrencies, you should subscribe to the Robinhood app and start trading in crypto.
FAQ: Robinhood LLC
What is Dogecoin?
A bunch of young guys created an online cryptocurrency a while back as a meme and a joke. But it became news, and investment opportunities kept growing as more and more people started buying Doge coins.
And that is how Dogecoin became a part of genuine cryptocurrency markets.