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Can you cash out dogecoin on Robinhood? Dogecoin is an online cryptocurrency based on the popular Doge meme and has been created as a joking reference to bitcoin. It has been designed with a great sense of fun, and many people worldwide have fallen in love with it. Dogecoin is also called a Dog coin or DOGE, and its value has risen from less than one cent in December 2013 to over 25 cents.
There are 100 billion DOGE coins in circulation currently. You can cash out your dogecoins on the Robinhood app if you want to get rid of your holdings and receive an equivalent amount of another cryptocurrency like Bitcoin, Ethereum, etc. If you don’t know what cashing out means, read below for details.
Some of the most popular cryptocurrencies are traded on the Robinhood Crypto app. But one crypto doesn’t fit all investors. Dogecoin doesn’t offer much in terms of investment opportunities. However, taking advantage of price fluctuations is good by selling your coins and cashing out to fiat. This article will cover how to cash out Dogecoin on Robinhood. The process is similar to any other cryptocurrency listed on the app. You will need a Bitcoin wallet where you keep your Dogecoins.
Can you Cash out Dogecoin on Robinhood?
This is a big deal for several reasons. Most importantly, it brings Robinhood’s platform closer to mainstream adoption. It also paves the way for Robinhood to expand into other regulated asset classes. Finally, the announcement signals that Robinhood will remain a commission-free brokerage service. Robinhood offers zero-fee trades on 19 different asset classes.
However, it was not until today that the company added Bitcoin and Ethereum to its list of tradable cryptocurrencies. Robinhood’s announcement follows closely behind its acquisition of a broker-dealer license from the U.S. Securities and Exchange Commission (SEC).
The platform’s crypto offering will be available to all Robinhood users starting today. Robinhood is currently a mobile-only brokerage application. This means that it does not currently offer the flexibility of a desktop brokerage service. Robinhood does, however, allow customers to track the performance of Bitcoin and Ethereum.
What is Dogecoin?
A peer-to-peer, open-source cryptocurrency is called Dogecoin. It is regarded as a meme coin and an alternative cryptocurrency. Dogecoin was introduced in December 2013 and used a Shiba Inu dog as its logo.
Even though Dogecoin’s blockchain seems to be designed as a joke, it nevertheless retains value. It uses Litecoin-derived technology as its foundation. Dogecoin, which employs a script method, is notable for its cheap cost and limitless supply.
What is Robinhood?
A financial technology (fintech) business, Robinhood Markets Inc., runs an online discount brokerage with commission-free trading. It offers a financial services platform that is a web- and mobile-based and enables users to buy and sell stocks, exchange-traded funds (ETFs), options, and American depositary receipts (ADRs). Additionally, depending on their region, individuals may invest in certain cryptocurrencies.
Robinhood generates revenue via charging for order flow, charging premium subscription fees, lending out stocks, and charging interest on uninvested capital. Along with its debit card interchange fees and other minor revenue sources, this is another source of income.
What can you do with your Robinhood Account?
You may move your shares from Robinhood to another brokerage if you trade equities there. Consider the following scenario: you own 100 TSA stocks with Robinhood but are unhappy with their customer service. As a result, you choose to open an account with Intra Brokers (I.B.).
To move cash or securities to IB, you do not need to liquidate your TSLA. +. Alternatively, you may request that Robinhood move all of your assets to your I.B. This is similar to transferring money via an ACH operation.
You don’t have to pay taxes when moving your equity from Robinhood to another brokerage. Additionally, if you buy Dogecoin on Robinhood, you will not be able to move your coin to another account. Your only choice is to liquidate all of their Dogecoins and move the proceeds to your checking account. Another difficulty arises as a result of this.
If you trade your Dogecoin again, you would be required to pay the tax to the IRS throughout tax season.
Dogecoin is a Digital Currency
You cannot settle people electronically with your Robinhood Dogecoin since Robinhood does not offer you a cryptocurrency wallet or access.
Purchasing Dogecoin on Robinhood, on the other hand, is completely risk-free. The most useful feature for stock trading, futures, and cryptocurrency is Robinhood. They will not do anything to harm their good name.
As a result, purchasing Dogecoin and storing it in your Robinhood wallet is risk-free. Remember that this is not the reality even though Robinhood promises to provide commission-free cryptocurrency trading.
When a thing is free, it is you who is the commodity. Robinhood is divided into two firms.
These two companies are:
- Robinhood Financial, LLC.
- Crypto Robinhood, LLC.
Robinhood Financial LLC is where we trade our stocks and futures options. The firm is a FINRA/SIPC-accredited financial intermediary, and your money is protected for up to $500,000. As a result, if Robinhood went bankrupt for any matter, you’d be entitled to approximately $550,000 in insurance.
But when you trade with Dogecoin on Robinhood, such trades are executed at Robinhood Crypto, LLC. Robinhood holds all of its cryptocurrencies with this company. It is not a member of FINRA/SIPC, so your cryptocurrency deposits are not insured.
Therefore, you may lose your entire cryptocurrency investment if Robinhood suffers a major attack or a significant server failure and cannot properly restore its servers. This type of occurrence is unlikely. Therefore, you can trade Dogecoin with the Robinhood app without worry.
However, for long-term investment strategies or investing in cryptocurrencies other than Dogecoin, Robinhood is not the best platform to use. It does seem better to use Coinbase or Binance.
How do you get Dogecoin out of Robinhood and into your wallet?
Dogecoin holders on Robinhood are unable to access their wallets or secret keys. Users cannot move Doge from Robinhood to their own or other purses.
Robinhood has long promised to allow access to confidential bitcoin wallets, but it has yet to do so. The only method to get your coin out from Robinhood is to trade Dogecoin for USD, send funds to your checking account, and then purchase Dogecoin on a different site like Binance or Kraken with the proceeds.
There’s no avoiding it. You, on the other hand, have an issue.
You will have to settle IRS tax on capital gains if you trade your Dogecoin for US dollars throughout tax season. Gains from cryptocurrency and equities are lumped together by the IRS. As a result, it’s better not to resell Doge now if you acquired it on Robinhood. Rather, keep it for the length as possible before selling it again.
In any case, if you prefer to buy more Dogecoin, make use of other existing cryptocurrency exchanges from Bittrex, Crypto.com, Binance, or Kraken.
Nonetheless, Robinhood isn’t as scary as we’ve heard in the news.
At the same time, Robinhood imposed buying restrictions on GameStop. Several firms, including Webull, TDAmeritrade, Charles Schwab Consulting, and Internal Brokers, also placed buying restrictions on GME stock. Robinhood received more negative press because most retail investors use its free software.
Bottom Line
Robinhood is an excellent option if your primary objective is to acquire Dogecoin as an asset and resell it later. There aren’t any issues with this. However, don’t use Robinhood if you use Doge to purchase stuff online using virtual cash. In real situations, the use of Dogecoin is minimal. Only a few businesses accept Doge, and paying with this currency, in general, is difficult.
Payments with US dollars are simpler and quicker to make online than payments in cryptocurrency. Don’t fret if you have any Dogecoin at Robinhood. You will not be disappointed. We hope this post has explained how to trade out Dogecoin on Robinhood for everyone.
Expert Opinion
Like Bitcoin, Ethereum, and other cryptocurrencies, Dogecoin is a kind of money. Dogecoin was created by Billy Markus and Jackson Palmer and was made available on December 6, 2013. The Robinhood app, on the other hand, lets users trade stocks, options, exchange-traded funds, and cryptocurrencies without paying any commissions. You can trade Dogecoin and keep it if you have a Robinhood account. Furthermore, you can cash out dodge coin on Robinhood through the tips above.
References
- https://finance.yahoo.com/news/robinhood-let-users-deposit-withdraw-081643415.html
- https://www.forbes.com/advisor/investing/cryptocurrency/what-is-dogecoin/
- https://en.wikipedia.org/wiki/Dogecoin
I am Lavinia by name, and a financial expert with a degree in finance from the University of Chicago. In my blog, I help people to educate by making wise choices regarding personal investment, basic banking, credit and debit card, business education, real estate, insurance, expenditures, etc.
