The Robinhood app is well-known for making investing simple and accessible to everyone. Whether you’re just starting out or you’re a more experienced investor looking for convenience, Robinhood offers an easy way to buy and sell stocks, ETFs, and cryptocurrencies all in one place. In this detailed guide, we’ll walk you through the exact steps on how to buy and sell stocks, ETFs, and crypto on the Robinhood app.
Getting Started with the Robinhood App
Before you can start trading, you need to have the Robinhood app downloaded and set up on your mobile device. Once you’ve logged in and verified your account, you’re ready to begin buying and selling assets.
How to Buy Stocks and ETFs on the Robinhood App
Step 1: Search for the Asset You Want to Buy
Open the Robinhood app and tap the search button next to the notifications icon. You can type in the name or the ticker symbol of the stock or ETF you’re interested in purchasing.
For example, since this demonstration is on the Robinhood platform itself, you can search for Robinhood (HOOD) by typing its name or ticker.
Step 2: Access the Trading Dashboard
After selecting the stock or ETF, you’ll be taken to its trading dashboard. This page shows you the current price, market performance, and other key details.
Here, tap the Trade button and then select Buy to start your purchase.
Step 3: Enter the Purchase Amount
One of the standout features of Robinhood is the ability to buy fractional shares. This means you can invest in expensive stocks and ETFs without needing to buy a whole share.
The minimum investment amount is just $1, which is among the lowest requirements in the market. For this demonstration, let’s say you want to purchase $5 worth of Robinhood stock.
Simply enter the amount you wish to invest, review the order details, and when you’re ready, swipe to submit the order.
Step 4: Order Processing
If the stock market is closed (such as during pre-market or after-hours), your order will be queued and executed when the market reopens. If the market is open, your order will typically execute immediately.
How to Sell Stocks and ETFs on the Robinhood App
Step 1: Locate Your Holdings
On the main dashboard, scroll down to find your portfolio holdings. This section shows all the assets you currently own, including stocks, ETFs, and crypto.
Let’s say you’ve purchased Robinhood stock and now you want to sell it.
Step 2: Select the Asset to Sell
Tap on the asset you want to sell (for example, Robinhood stock). Once you’re on the asset’s page, tap the Trade button again and select Sell.
Step 3: Enter the Sale Amount
You can sell the full amount you own or just a portion of it. Robinhood supports selling fractional shares as well.
For example, if you want to sell $5 worth of Robinhood stock, enter that amount, review the details, and then swipe to submit the sale.
Robinhood typically uses market orders for selling fractional shares, which means your order will execute at the current market price.
How to Buy and Sell Crypto on the Robinhood App
Buying and selling cryptocurrencies on Robinhood is just as straightforward as trading stocks and ETFs.
Step 1: Access the Crypto Section
On the bottom menu of the Robinhood app, tap the Crypto symbol. This will take you to the list of available cryptocurrencies.
Let’s say you want to buy Bitcoin.
Step 2: Select the Crypto and Enter Purchase Amount
Tap on Bitcoin and then tap the Buy button. For this demonstration, let’s purchase $5 worth of Bitcoin.
Step 3: Review the Agreement
If this is your first time buying crypto on Robinhood, you will need to review and accept the user agreement for cryptocurrency trading. Carefully read through the terms and, if you agree, submit your acceptance.
Step 4: Understand Crypto Fees on Robinhood
Although Robinhood advertises commission-free trading, there is a spread when buying crypto. The spread is essentially the difference between the buy and sell price, and it’s how Robinhood makes money on crypto transactions.
In this example, the spread was 0.59%. For a $5 purchase, the fee was around $0.03. For larger transactions, such as $500, the fee would scale accordingly.
Step 5: Complete the Purchase
Once you’ve entered the amount and reviewed the details, swipe to submit the purchase.
Step 6: Selling Crypto on Robinhood
Selling crypto is almost identical to selling stocks and ETFs.
- Return to your main dashboard and scroll to your crypto holdings.
- Select the crypto you want to sell, tap Sell, enter the amount, review the order, and swipe to confirm.
Key Features When Trading on the Robinhood App
- Fractional Shares: Robinhood allows you to buy partial shares of stocks and ETFs starting from as little as $1.
- No Commission Fees: Stocks, ETFs, and crypto are traded without commissions, but keep in mind that crypto trades include a small spread.
- Easy-to-Use Interface: The Robinhood app is known for its user-friendly design, making it easy for beginners to navigate.
- Immediate Execution: Market orders typically execute instantly during market hours.
- Simple Portfolio Management: You can track all your investments—stocks, ETFs, and crypto—directly from your main dashboard.
Important Considerations
While buying and selling stocks, ETFs, and crypto on the Robinhood app is extremely easy, there are a few things to keep in mind:
- Market orders may be subject to price fluctuations.
- Crypto assets are not insured by the FDIC or SIPC.
- Robinhood may restrict trading during periods of extreme volatility.
- Always double-check order amounts and asset types before submitting trades.
Final Thoughts
Robinhood has truly simplified the process of investing for everyday users. Whether you are looking to start with just a few dollars or you want to build a diverse portfolio, the platform’s intuitive design makes it easy to buy and sell stocks, ETFs, and crypto on the Robinhood app.
The ability to trade with small amounts, access fractional shares, and quickly buy or sell assets with just a swipe is why so many people are choosing Robinhood for their investing needs. However, make sure you understand the associated risks, especially when trading cryptocurrencies or using market orders during volatile periods.
By following the steps in this guide, you can confidently navigate the Robinhood app and start managing your investments effectively today.
