What is the impact of a good faith violation on my Robinhood account balance for cryptocurrency trades?

3 answers

• Bruhn GregersenJan 14, 2024 · 2 years ago
  A good faith violation on your Robinhood account can have a negative impact on your cryptocurrency trades. When you commit a good faith violation, it means that you have sold a cryptocurrency that was purchased with unsettled funds. As a result, Robinhood will restrict your account from making further cryptocurrency trades for 90 days. During this period, you will not be able to use the proceeds from the sale of unsettled funds to purchase other cryptocurrencies. It's important to be aware of the consequences of good faith violations to avoid any restrictions on your account.
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• Anurag GcApr 20, 2024 · 2 years ago
  Good faith violations can be a real pain in the neck when it comes to trading cryptocurrencies on Robinhood. If you sell a cryptocurrency that was purchased with unsettled funds, you'll be hit with a violation. This violation will restrict your account from making any further cryptocurrency trades for a period of 90 days. So, if you were planning on using the proceeds from the sale to buy more cryptocurrencies, you'll have to wait it out. It's always a good idea to make sure you have settled funds before making any trades to avoid these pesky violations.
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• ChaficDec 31, 2020 · 5 years ago
  When it comes to good faith violations on your Robinhood account, the consequences can be quite significant. If you sell a cryptocurrency that was purchased with unsettled funds, Robinhood will flag it as a violation. This violation will result in a 90-day restriction on your account, meaning you won't be able to make any more cryptocurrency trades during this period. It's important to keep track of your settled funds and avoid selling cryptocurrencies that were purchased with unsettled funds to prevent these restrictions from affecting your account balance.
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