Robinhood has been a force of revolution changing the way people think of investing in the financial markets. So, when the company started offering crypto trading in February 2018, it was a big deal. One of the coins you can buy on the platform is Dogecoin, and you may be wondering how you can transfer Dogecoin from Robinhood and into your preferred crypto wallet.
On the state of crypto trading on Robinhood
Well, there’s good news and bad news. Let’s start with the bad news and get it out of the way because the good is far more important.
Oh no, what’s the bad news?
We’ll give it to you straight – you can’t transfer Dogecoin from Robinhood to another wallet at all. Check out this link to read Robinhood’s policy on coin withdrawals and you will see that it’s simply not possible to do so. This is unfortunate since the broker is one of very few offering crypto trading without commissions. So, if that’s all you needed to know you can now close the tab and go back to Instagram.
Hold on there, there’s hope…
The good news is the company assures you that you own all the crypto you buy on the Robinhood platform. As you can see in the snapshot below from the company’s Twitter page, Robinhood assured its clients that they own all the shares bought on its platform. This was after some clients alleged that the company sold stock CFDs rather than actual stock. In recent months, clients holding Dogecoin and other cryptocurrencies complained about the same.
Even better news is that Robinhood is on the verge of delivering exactly what crypto users want – an actual crypto wallet. By as early as March 2021, CEO Vlad Tenev acknowledged the demand for one from users. Then in July 2021, he promised to deliver a crypto wallet ‘as fast as possible’. That day came when the company officially announced that it will likely provide wallet services by 2022.
Starting in October 2021 through an alpha programme, only select clients will be able to use the wallets within the Robinhood app. This is so as to receive feedback directly from users to help the company finetune the service. Christine Brown, Cryptocurrency COO at the company, told Business Insider that this “…building in public…” approach will give users the ability to shape the end product.
How this will help users transfer Dogecoin from Robinhood
From only 2 coins when Robinhood Crypto was launched in 2018, today you can trade 7 different coins including Dogecoin. When you buy Dogecoin from the platform, Robinhood keeps your holdings either in cold or hot storage. The former are offline wallets and the latter connected to the internet.
Whichever the case, though, you don’t gain access to the coins since you need the private keys and addresses to own any cryptocurrency. At the moment, Robinhood doesn’t do that, meaning that you can’t transfer your DOGE to another wallet.
However, once the rollout of a crypto wallet is complete, you will have access to your very own Dogecoin wallet address. Essentially, you will have full control over your DOGE and will thus be able to transfer Dogecoin from Robinhood to any other wallet you want.
What took so long?
You would think that such a revolutionary company would have acted sooner, right? After all, the company’s financials show that it relies heavily on crypto trading to make a profit. Of the transaction-based revenue earned in Q2 2021, 51% came from crypto trading with DOGE trading in particular making up 62% of that.
The thing is, crypto trading isn’t a money maker for Robinhood as you would have expected. That is because, unlike other exchanges and brokers, Robinhood doesn’t charge commissions at all. In fact, at the launch of Robinhood Crypto, Vlad Tenev stated that, “We want to break even on this business, not to profit from it.”
For the company, getting into crypto wasn’t meant to be an additional stream of income but more of a crowd pleaser. Many other brokers such as Coinbase, Gemini, TD Ameritrade, E-Trade, etc. either allow trading of crypto futures or already have a crypto wallet. Therefore, launching a crypto wallet would appeal to users with an interest in crypto.
What to do now?
Robinhood is a great online broker charging no fees for trades and offering exposure to multiple asset classes including stocks and options. For these reasons, you may want to keep using the app as you wait for the final launch of the wallet and transfer Dogecoin from Robinhood. Alternatively, simply sell your holdings and find another wallet that will let you send and receive DOGE freely.