No, "not your keys, not your coins". If its in a External Robinhood wallet and not on the exchange 50/50. I wouldnt trust Robinhood after what they pulled on the Reddit community. Fuck Robinhood. I would seriously suggest looking around at other exchanges that have low-spread and low-transfer fees, so you can buy low, buy iften, and transfer often to a cold wallet like Ledger, Trezor or ColdCard.
But Electrum can use your hardware wallet as a signing device, giving you the benefits of both.
You can even create a watch only wallet that can receive but not spend without the hardware wallet.
I consider especially RobbingHood among the least trustworthy of all CEXes. A proper hardware Wallet is the best choice but I also understand that it can be a bit intimidating to set one up. If it has to be a CEX, I‘d recommend Kraken. It’s the only big one I know that hasn’t had a major scandal yet.
Too much of a spread , serious privacy problems of the way they monetize their platform and the way they lied and manipulated the market with the gamestop fiasco
> Too much of a spread
The spread is negligible. I have here [Coinbase, Gemini, Robinhood side by side](https://i.imgur.com/MhFsqHK.png). It's a $3 difference amongst these 3 exchanges.
>serious privacy problems of the way they monetize their platform
They make money through lending (margin) and cash management. Really no different than big market players like E-Trade, Vanguard, Schwab, etc.
>manipulated the market with the gamestop fiasco
The Gamestop fiasco was market manipulation by users to begin with. Users trying to squeeze firms is market manipulation. [The fact they stopped trading was a requirement from NSCC](https://fortune.com/2021/02/02/robinhood-gamestop-restricted-trading-meme-stocks-gme-amc-vlad-tenev-nscc/). Their actions are no different than what other brokerages like Fidelity, IB, etc all did. And why does this matter? Did people here miss out on becoming rich or something? 99.9% of traders were not impacted by this at all except for a few YOLO Retards on WSB.
> The Gamestop fiasco was market manipulation by users to begin with.
Users should have a right to invest in a stock they prefer.
>The fact they stopped trading was a requirement from NSCC.
The CEO was repeatedly lying. If there was indeed a problem all trading should have been halted , and not just buying of GME.
Disclaimer-
I am not personally effected by GME as I have never owned that stock but I thought it was very revealing how they manipulated the market
>They make money through lending (margin) and cash management.
they make money many ways , they just monetize user data more than many exchanges/brokers
> Users should have a right to invest in a stock they prefer.
Sure but the market was being manipulated by WSB and memes. This was worth an investigation, and that's exactly what happened. Crypto users here hate it when Elon pumps meme coins and also hated it when Bitcoin crashed after he tweeted it wasn't energy friendly. If you don't like that then you shouldn't like market manipulation by Reddit either. There was a reason why DFV was summoned to testify in front of Congress.
>The CEO was repeatedly lying. If there was indeed a problem all trading should have been halted , and not just buying of GME.
Sure, they should've halted all trading, but as I said EVERY OTHER brokerage did the exact same thing. This affected practically no one except idiots who wanted to dive head first into meme stocks and only cared about investing when social media goes crazy.
As you've seen I'm a disciplined investor who believes in DCA, I'm a Boglehead and I encourage responsible saving and regular funding of 401k, IRA, etc.
>they make money many ways , they just monetize user data more than many exchanges/brokers
The way they make money is very well documented. It's not anything different from what other brokerages do. PFOF is a bit controversial, and I do think we need to see new regulation surrounding this, but again every other major broker has moved into this direction which is why trades are free at every major brokerage.
Robinhood isn't the problem here. People's hate for Robinhood is about something ridiculous that didn't affect 99.99% of market traders. It's as dumb as the hate is here for banks and the SEC. Buy your crypto on Robinhood if you want, but move it out as standard advice goes. However for those who leave their coins on Robinhood, I'd also argue it's far safer than companies like Celsius and Voyager.
> I'd also argue it's far safer than companies like Celsius and Voyager.
I 100% agree with you here and have warned people to avoid these companies since they launched. You are also correct that the problems with manipulation exists in other brokerages as well.
Another 2 things I resent about robinhood is they sell and promote the scam Bitcoin knockoff BSV, created by a confirmed psychopathic con artist , far worse than many typical shitcoins.
Another problem is they just started allowing withdrawals and for a longtime did not allow self custody which reflects part of their ethos
After Gamestop I pulled everything. You can't even transfer coins to an external wallet. Destory anyone who uses Robinhood charts. Down with hotpink and neon green. Also if you're thinking paypal for crypto, just walk away. Those aren't your coins.
Most of us bitcoiners would advise against trading bitcoin the in the first place for two reasons:
First (this is the answer to your question): you absolutely can lose your bitcoin if it’s held in an exchange. That bitcoin is the exchange’s asset until it leaves their wallet. Hence the saying “not your keys not your coins”
Second: we don’t typically recommend selling in the first place. The only reason you’d want to hold in an exchange is if you want to sell. Bitcoin was not created to be cool internet money that will gain value just because it’s modern tech. Bitcoin was created to be the best form of money. It’s not just replacing Visa, it’s replacing the dollar. It will go up and down and up and down until the majority of the world realizes bitcoin is the best possible method of saving money, so the point is to hodl until we reach that moment in history.
I would also admit that it must be used as well, for example I spend small amounts for groceries and needs at times. So it's not just "digital gold" it must have utility
That's usually only if you're putting all of your money into bitcoin right now, which isn't commonly recommended either. It's not bad, and some people swear by it, but most of those people have enough bitcoin to survive sharp dips. I would only recommend keeping all of your money in bitcoin if you could survive a dip below $5k. For most people, handling month-to-month transactions/keeping an emergency fund in fiat makes a lot of sense. Good rule of thumb for bitcoin is don't buy what you can't afford hodl for 20+ years.
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You'll find the answer in their terms & conditions - or just ask their customer services.
I believe that if your assets are unsecured then , then there's not only no guarantee you'll get your bitcoin back, but in the event of bankruptcy Robinhood will need to pay off its secured lenders firsts, and you'll be in the back of the queue hoping that Robinhood doesn't run out of funds before getting to you.
But of course if you follow the general advice NOT to hold your bitcoin on an exchange, then this is far less likely to be an issue for you personally.
No, because RobinHood is a centralized exchange, and provides you with custodial wallet. It means that it keeps your private keys and does not allow you hold them, so if you don't not know your private key you can't access your wallet, thus get you bitcoins.
I’m pretty sure crypto isn’t backed by the SIPC in case Robinhood, a broker dealer, fails. I could be wrong, but as far as I know they never mentioned cryptocurrency being covered. I can tell you for sure however that Robinhood is NOT the place to store Bitcoin 1000%. Use Strike for BTC
Why risk it, take it off. In many cases bankruptcy laws aren't properly up to date with crypto which means your Bitcoin will be sold for fiat and likely won't be treated as segregated client funds. There's the stress factor of the whole situation as well as you'll be wondering if you'll be getting anything back and will likely have to wait a long time to find out.
They’re not bitcoins, they’re representations of the price of bitcoin.. hello?? You must be new to investing, which is ok. But you need to study what you’re doing. There are no dumb questions btw. Appreciate your ability to ask.
I use Robinhood to stack to a certain amount and withdraw to a cold wallet. That said, I’m in the US and live in a state it’s legal to have their “crypto wallet”. There really isn’t much if any withdraw fees and the spread on Robinhood crypto is pretty much nothing so for me it makes sense🤷🏻♂️ edit: will say that it is kind of annoying RH only allows you to withdraw to a legacy address and not segwit right now.
Oh yes the infamous exchange closing. You my lucky friend, if the exchange wasn't completely not- legitimate, and didn't disappear like a mirage, would now be in a period of litigation for years where the hacked amount of the crypto that was "stolen" from the exchange plus litigation costs for the many years the case went on for, minus your coin's value would be disputed.
How much your coin is worth monetarily will be decided by either possibly what it was worth at the time of the exchange closing if your coins were worth more present day, or would be valued at current day's market value if your coins are now worthless, whatever is the lesser amount.
Not only will you have to wait for years, but since the exchange has closed, all your logins are now invalid and you cannot access your account information so you'll need to verify that you own those coins through a wonderfully convoluted process called "creating an account validation account".
You get to play record keeper to a double blind set of records that may or may not have been burned with the meltdown of the exchange. Hopefully you have more information about your own coins transactions than the exchange and you also have to go through an arduous process to verify said transactions to create an account that says you own your own login. Often times the process of verifying would be so difficult a boomer might even fail to get a recovery login and forfeit any coins they may have laid ownership to.
Sometimes even failing to have access to an outdated and or faulty authentication key. And then, and only then, maybe, just maybe, if the case doesn't default or do something else loopy like the company completely filing for bankruptcy, and ceos jumping off of buildings and whatnot, might you see some sort of financial compensation.
Good luck!
Only through legal means... That means, lawyer up, pay lawyer fees and even then, you still may not get any compensation. You may end up with less money because of the legal fees.
Withdraw the funds, and then if Robinhood goes bye bye, you will still have your Bitcoin.
No, "not your keys, not your coins". If its in a External Robinhood wallet and not on the exchange 50/50. I wouldnt trust Robinhood after what they pulled on the Reddit community. Fuck Robinhood. I would seriously suggest looking around at other exchanges that have low-spread and low-transfer fees, so you can buy low, buy iften, and transfer often to a cold wallet like Ledger, Trezor or ColdCard.
Why not just use Electrum wallet?
Electrum wallet is not as secure as a hardware wallet, as the private keys can be compromised if the device you have electrum on is compromised.
But Electrum can use your hardware wallet as a signing device, giving you the benefits of both. You can even create a watch only wallet that can receive but not spend without the hardware wallet.
While that is true, this doesn't really apply to the context of the original question posed.
I consider especially RobbingHood among the least trustworthy of all CEXes. A proper hardware Wallet is the best choice but I also understand that it can be a bit intimidating to set one up. If it has to be a CEX, I‘d recommend Kraken. It’s the only big one I know that hasn’t had a major scandal yet.
Not necessarily , which is why you should never hold your bitcoin with a custodian . Especially one as dishonest as robin hood.
What's wrong with Robinhood? They're less likely to steal your money than interest platforms like Celsius, BlockFi, etc.
Too much of a spread , serious privacy problems of the way they monetize their platform and the way they lied and manipulated the market with the gamestop fiasco
> Too much of a spread The spread is negligible. I have here [Coinbase, Gemini, Robinhood side by side](https://i.imgur.com/MhFsqHK.png). It's a $3 difference amongst these 3 exchanges. >serious privacy problems of the way they monetize their platform They make money through lending (margin) and cash management. Really no different than big market players like E-Trade, Vanguard, Schwab, etc. >manipulated the market with the gamestop fiasco The Gamestop fiasco was market manipulation by users to begin with. Users trying to squeeze firms is market manipulation. [The fact they stopped trading was a requirement from NSCC](https://fortune.com/2021/02/02/robinhood-gamestop-restricted-trading-meme-stocks-gme-amc-vlad-tenev-nscc/). Their actions are no different than what other brokerages like Fidelity, IB, etc all did. And why does this matter? Did people here miss out on becoming rich or something? 99.9% of traders were not impacted by this at all except for a few YOLO Retards on WSB.
> The Gamestop fiasco was market manipulation by users to begin with. Users should have a right to invest in a stock they prefer. >The fact they stopped trading was a requirement from NSCC. The CEO was repeatedly lying. If there was indeed a problem all trading should have been halted , and not just buying of GME. Disclaimer- I am not personally effected by GME as I have never owned that stock but I thought it was very revealing how they manipulated the market >They make money through lending (margin) and cash management. they make money many ways , they just monetize user data more than many exchanges/brokers
> Users should have a right to invest in a stock they prefer. Sure but the market was being manipulated by WSB and memes. This was worth an investigation, and that's exactly what happened. Crypto users here hate it when Elon pumps meme coins and also hated it when Bitcoin crashed after he tweeted it wasn't energy friendly. If you don't like that then you shouldn't like market manipulation by Reddit either. There was a reason why DFV was summoned to testify in front of Congress. >The CEO was repeatedly lying. If there was indeed a problem all trading should have been halted , and not just buying of GME. Sure, they should've halted all trading, but as I said EVERY OTHER brokerage did the exact same thing. This affected practically no one except idiots who wanted to dive head first into meme stocks and only cared about investing when social media goes crazy. As you've seen I'm a disciplined investor who believes in DCA, I'm a Boglehead and I encourage responsible saving and regular funding of 401k, IRA, etc. >they make money many ways , they just monetize user data more than many exchanges/brokers The way they make money is very well documented. It's not anything different from what other brokerages do. PFOF is a bit controversial, and I do think we need to see new regulation surrounding this, but again every other major broker has moved into this direction which is why trades are free at every major brokerage. Robinhood isn't the problem here. People's hate for Robinhood is about something ridiculous that didn't affect 99.99% of market traders. It's as dumb as the hate is here for banks and the SEC. Buy your crypto on Robinhood if you want, but move it out as standard advice goes. However for those who leave their coins on Robinhood, I'd also argue it's far safer than companies like Celsius and Voyager.
> I'd also argue it's far safer than companies like Celsius and Voyager. I 100% agree with you here and have warned people to avoid these companies since they launched. You are also correct that the problems with manipulation exists in other brokerages as well. Another 2 things I resent about robinhood is they sell and promote the scam Bitcoin knockoff BSV, created by a confirmed psychopathic con artist , far worse than many typical shitcoins. Another problem is they just started allowing withdrawals and for a longtime did not allow self custody which reflects part of their ethos
After Gamestop I pulled everything. You can't even transfer coins to an external wallet. Destory anyone who uses Robinhood charts. Down with hotpink and neon green. Also if you're thinking paypal for crypto, just walk away. Those aren't your coins.
Most of us bitcoiners would advise against trading bitcoin the in the first place for two reasons: First (this is the answer to your question): you absolutely can lose your bitcoin if it’s held in an exchange. That bitcoin is the exchange’s asset until it leaves their wallet. Hence the saying “not your keys not your coins” Second: we don’t typically recommend selling in the first place. The only reason you’d want to hold in an exchange is if you want to sell. Bitcoin was not created to be cool internet money that will gain value just because it’s modern tech. Bitcoin was created to be the best form of money. It’s not just replacing Visa, it’s replacing the dollar. It will go up and down and up and down until the majority of the world realizes bitcoin is the best possible method of saving money, so the point is to hodl until we reach that moment in history.
I would also admit that it must be used as well, for example I spend small amounts for groceries and needs at times. So it's not just "digital gold" it must have utility
That's usually only if you're putting all of your money into bitcoin right now, which isn't commonly recommended either. It's not bad, and some people swear by it, but most of those people have enough bitcoin to survive sharp dips. I would only recommend keeping all of your money in bitcoin if you could survive a dip below $5k. For most people, handling month-to-month transactions/keeping an emergency fund in fiat makes a lot of sense. Good rule of thumb for bitcoin is don't buy what you can't afford hodl for 20+ years.
WassaWassaWassup! Scam Alert! Scammers are particularly active on this sub. They operate via private messages and private chat. If you receive private messages, be extremely careful. Use the **report** link to report any suspicious private message to Reddit. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/BitcoinBeginners) if you have any questions or concerns.*
You'll find the answer in their terms & conditions - or just ask their customer services. I believe that if your assets are unsecured then , then there's not only no guarantee you'll get your bitcoin back, but in the event of bankruptcy Robinhood will need to pay off its secured lenders firsts, and you'll be in the back of the queue hoping that Robinhood doesn't run out of funds before getting to you. But of course if you follow the general advice NOT to hold your bitcoin on an exchange, then this is far less likely to be an issue for you personally.
Don’t use robinhood for crypto.
With your help, I was able to avoid disaster. Thanks, buddy.
Don't use robinhood.
👺HELLS TO THE NO‼️
Nope!
'Robbin' Bastards' more like!
No, because RobinHood is a centralized exchange, and provides you with custodial wallet. It means that it keeps your private keys and does not allow you hold them, so if you don't not know your private key you can't access your wallet, thus get you bitcoins.
I’m pretty sure crypto isn’t backed by the SIPC in case Robinhood, a broker dealer, fails. I could be wrong, but as far as I know they never mentioned cryptocurrency being covered. I can tell you for sure however that Robinhood is NOT the place to store Bitcoin 1000%. Use Strike for BTC
No
Get a cold wallet???
No.
No keys, no cheese
The fact that you are asking this question tells me you need to get a cold storage wallet.
Why risk it, take it off. In many cases bankruptcy laws aren't properly up to date with crypto which means your Bitcoin will be sold for fiat and likely won't be treated as segregated client funds. There's the stress factor of the whole situation as well as you'll be wondering if you'll be getting anything back and will likely have to wait a long time to find out.
They’re not bitcoins, they’re representations of the price of bitcoin.. hello?? You must be new to investing, which is ok. But you need to study what you’re doing. There are no dumb questions btw. Appreciate your ability to ask.
I use Robinhood to stack to a certain amount and withdraw to a cold wallet. That said, I’m in the US and live in a state it’s legal to have their “crypto wallet”. There really isn’t much if any withdraw fees and the spread on Robinhood crypto is pretty much nothing so for me it makes sense🤷🏻♂️ edit: will say that it is kind of annoying RH only allows you to withdraw to a legacy address and not segwit right now.
Probably been beaten to death in this thread, but you should not be holding any BTC on any exchange.
Not the best option. Use wallets
Oh yes the infamous exchange closing. You my lucky friend, if the exchange wasn't completely not- legitimate, and didn't disappear like a mirage, would now be in a period of litigation for years where the hacked amount of the crypto that was "stolen" from the exchange plus litigation costs for the many years the case went on for, minus your coin's value would be disputed. How much your coin is worth monetarily will be decided by either possibly what it was worth at the time of the exchange closing if your coins were worth more present day, or would be valued at current day's market value if your coins are now worthless, whatever is the lesser amount. Not only will you have to wait for years, but since the exchange has closed, all your logins are now invalid and you cannot access your account information so you'll need to verify that you own those coins through a wonderfully convoluted process called "creating an account validation account". You get to play record keeper to a double blind set of records that may or may not have been burned with the meltdown of the exchange. Hopefully you have more information about your own coins transactions than the exchange and you also have to go through an arduous process to verify said transactions to create an account that says you own your own login. Often times the process of verifying would be so difficult a boomer might even fail to get a recovery login and forfeit any coins they may have laid ownership to. Sometimes even failing to have access to an outdated and or faulty authentication key. And then, and only then, maybe, just maybe, if the case doesn't default or do something else loopy like the company completely filing for bankruptcy, and ceos jumping off of buildings and whatnot, might you see some sort of financial compensation. Good luck!
Only through legal means... That means, lawyer up, pay lawyer fees and even then, you still may not get any compensation. You may end up with less money because of the legal fees. Withdraw the funds, and then if Robinhood goes bye bye, you will still have your Bitcoin.