What are the cash account rules for trading cryptocurrencies on Robinhood?

3 answers

• Muhammad Naeem TahirSep 02, 2023 · 2 years ago
  When trading cryptocurrencies on Robinhood using a cash account, there are a few important rules to keep in mind. First, you must have sufficient funds in your account to cover the full purchase price of the cryptocurrency you wish to buy. Unlike a margin account, you cannot borrow funds to make the purchase. Second, any proceeds from the sale of cryptocurrencies will be subject to a 2-day settlement period before they can be used to make additional purchases. This means that you will not be able to use the proceeds from a sale to immediately buy another cryptocurrency. Lastly, it's important to note that cash accounts are not eligible for instant deposits or instant settlements, so you may experience delays in accessing your funds or making trades. Overall, trading cryptocurrencies on Robinhood with a cash account requires careful planning and consideration of the available funds and settlement periods.
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• Himesh IgralApr 02, 2021 · 4 years ago
  When it comes to trading cryptocurrencies on Robinhood with a cash account, there are a few rules you need to be aware of. First, you can only use the cash available in your account to make purchases. This means you cannot use borrowed funds or trade on margin. Second, any proceeds from the sale of cryptocurrencies will take 2 business days to settle before they can be used to make additional purchases. This settlement period is a regulatory requirement and applies to all cash accounts. Lastly, it's important to note that cash accounts do not have access to instant deposits or instant settlements, so you may experience delays in accessing your funds or making trades. It's always a good idea to plan your trades accordingly and ensure you have enough funds available to cover your purchases.
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• Muhamad Asyraf Muhamad AdnanJan 18, 2023 · 3 years ago
  When trading cryptocurrencies on Robinhood with a cash account, there are a few rules that you need to keep in mind. First and foremost, you can only use the cash available in your account to make purchases. This means you cannot use margin or borrow funds to trade cryptocurrencies. Second, any proceeds from the sale of cryptocurrencies will take 2 business days to settle before they can be used to make additional purchases. This settlement period is a standard practice in the industry and applies to all cash accounts. Lastly, it's important to note that cash accounts do not have access to instant deposits or instant settlements, so you may experience delays in accessing your funds or making trades. It's always a good idea to plan your trades ahead of time and ensure you have enough cash available to cover your purchases.
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