Buying and Selling Crypto: A Comprehensive Guide

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Market Orders

Market orders allow you to buy or sell crypto instantly at the best available price. To protect against extreme price fluctuations:

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Unfilled market orders cancel automatically after 2 minutes.

Limit Orders

A limit order specifies the maximum/minimum price you're willing to pay/receive:

USD-placed orders:

Fractional crypto orders:

Note: Execution isn't guaranteed - depends on market reaching your price.

Stop Orders

Stop orders trigger market orders when reaching a set price:

Buy stop order:

Sell stop order:

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Stop Limit Orders

Combine stop and limit order features:

Buy stop limit:

  1. Triggers at stop price
  2. Executes only at limit price or better

Sell stop limit:

  1. Triggers at stop price
  2. Executes only at limit price or better

Example: XYZ at $5 → Set stop $8, limit $8.05 → Only buys if available ≤$8.05 after reaching $8

Order Specifications

Trading Features

FAQ

Why do buy/sell prices differ?

The spread reflects market liquidity - tighter for popular coins like Bitcoin, wider for less-traded assets.

Are crypto trades subject to PDT rules?

No, crypto isn't regulated like securities so pattern day trading rules don't apply.

How quickly can I access crypto sale proceeds?

Immediately for reinvestment, but 5 business days for bank withdrawals.

What's the minimum crypto order size?

$0.01 for market maker routing, $0.03 for smart exchange routing.

How are external crypto transfers taxed?

Robinhood estimates gains using $0 cost basis and transfer receipt date.

Can I use crypto as margin collateral?

No, crypto is non-marginable and requires 100% cash backing.