How to Buy Crypto on Robinhood (The Basics) - YouTube

so with all of the ups and downs lately in the  cryptocurrency world i thought that it would be  

a good idea to make a very basic video on how  to buy and sell cryptocurrency specifically  

using the robinhood app because honestly it's  very straightforward it's very easy to do  

but you do need to understand  the basics of a market order  

and a limit order so i'm gonna go on my phone i'm  gonna show you those two different order types  

as they pertain to cryptocurrency and then  you guys can make your moves from there  

okay so the first thing you need to do to invest  in cryptocurrency using the robinhood app is you  

have to first search for it so what we're going to  do is we're going to click the search icon in the  

middle of the bottom here and we're going to go  right into the search category now you can either  

search specifically for different cryptocurrencies  they're all going to have their own technically  

ticker symbol like bitcoin for instance is btc  so we can just type that in btc and you can  

find bitcoin and you can do it that route now the  easiest route on robinhood is just to back up here  

and go exactly where we were and under trending  lists right at the top you just click on crypto  

and that is going to take you into the main  family of cryptocurrency now from here these  

are the different offerings that robin hood offers  and let's say that we want to invest in bitcoin  

right now which is down 10 percent um honestly we  have had a very large ride the last couple weeks  

and so it has gone down significantly um but  yeah today we're down 10 looks like 10 percent  

so the way that you're going to buy it now this  is very simple all you're going to do here is just  

click on buy and right here it's going to take  you to a default market order now what a market  

order means is this just that you're going to  execute at the exact price that it's trading for  

so for instance if it trades for 36 960 right  when you execute then that's what you're going  

to buy it at and so a market order is just a very  very simple way of investing in something whether  

it's a stock or in this case cryptocurrency  and it's going to execute at the exact price  

at that exact moment that it's trading for so in  this case we're generally looking at the bitcoin  

price being about thirty six thousand dollars and  most of us don't have thirty six thousand dollars  

to invest in to buy one coin so luckily we can buy  fractionally so if you only wanna do ten bucks or  

a hundred dollars you can buy fractionally so  right here let's say that we want to do 150  

we'll just type that in oops sorry 150 bucks  and so at the estimated price of 36 000  

divided by the 150 that you're putting it into  we're buying .00417ish of bitcoin if you're buying  

at the market value now in robinhood you are  going to have to have that money in your account  

in order to invest in it so you are going to have  to set up your bank account and you're gonna have  

to migrate that money from your bank into robin  hood now they do give you instant buying power  

up to a thousand dollars so for instance  if you deposit 500 into robinhood you can  

generally instantly use that 500 to invest with  whether you're investing in the stock market or  

cryptocurrency obviously they have different rules  for that so you're going to want to pay attention  

but you do have to get that money from your bank  into robinhood in order to execute because when  

you do transfer money from your bank account  into robinhood it does have to pen for a couple  

days until it settles and so during that period  that's why the instant buying power thing is handy  

because while that money is pending you can use  it to trade now obviously they do have different  

rules with the cryptocurrency and the stocks so  you just have to abide by those but the instant  

buying power thing is quite handy now that we've  talked about market order let's talk about the  

other order type which is a limit order now these  are the only types of orders that you can do using  

cryptocurrency and the way that you can access  them is by clicking on the top right right where  

it says market order because that's what they're  always going to default you at so we're going  

to click on market order and you're going to see  here market that's the one we were just looking at  

but then there's also one called limit order now  the point of a limit order is because generally  

you want to buy low and sell high because  that's the way that you can make the most money  

now when you're buying something whether that's a  stock or cryptocurrency we're going to want to buy  

low and the point of the limit order is that you  can limit the price at where it actually executes  

so if you were trading at 36 000 per bitcoin  and you only wanted to buy it at twenty  

thousand dollars which would be significantly  lower than what it's currently trading at  

but if that's what you wanted to buy it at because  that's what you felt comfortable then you're going  

to set a limit so we're just going to click on  limit here and at this point we're going to set  

our limit price so we're looking at the actual  current value right now at 35 500 something so  

let's just go down to 25 000 which is probably not  going to happen today but we're going to continue  

and then at this point we're going to tell it how  much cash we want to invest at the 25 000 price so  

at this point if you want to keep 150 bucks go for  that or maybe we want to do something like 5 000  

and if you wanted to invest five thousand dollars  into bitcoin at the 25 000 price point then that's  

what you do to set a limit order and you also need  to be aware that the limit order is only going to  

fully execute if the specific amount of money that  you set actually hits as far as the market value  

goes so for instance if you were buying and it was  at thirty six thousand dollars a piece per bitcoin  

but you only wanted to buy it thirty four thousand  then the only way that it's really going to  

execute is if the bitcoin price goes down to 34  000. otherwise it's just gonna sit there floating  

and nothing's really going to happen unless that  specific price that you set is actually met in the  

market value and just be aware that whenever you  are going to place an order in the cryptocurrency  

world they're open 24 7 seven days a week and  there's never a break unlike the stock market  

that does have an actual schedule and holidays  off so just keep that in mind the crypto world is  

always open and that is how the limit order works  versus the market order the limit is going to set  

exactly how much you're buying at a certain price  or you can do the opposite where you're selling so  

you want to sell it at a certain price and then  the market order you're either buying or selling  

at exactly that price that it is right then and  there right when you execute and so you can't  

really control that you can just get a general  idea of what it's costing and then you can invest  

that way so those are the two types of orders  we've got market orders and limit orders and to  

access them once again just click on the top right  and that is exactly where they are and that's  

where you can find them for cryptocurrency now if  you are investing in stocks there are a lot more  

different order types but you can also find those  options by clicking on the top right now that's  

how you can buy and sell cryptocurrency using the  robinhood app just be aware that there is a lot of  

risk associated with this type of investing it's  obviously very very volatile because we've seen it  

go up significantly and we've also seen it go down  significantly so just do your own due diligence do  

your research and know that there is a lot of  risk when it comes to investing especially in  

this high volatility market that we're in right  now and if you are new to the robinhood app i  

do have an affiliate link in the description below  where you can get a free share just for signing up  

now it's probably going to be pretty low like  worth less than 10 bucks but it's worth a shot  

because sometimes you can get one that's worth  over 200 bucks so give it a try if you're new to  

robin hood and also my name is jason i'm with the  honest finance channel and i make a lot of videos  

on different topics that'll give your life and  your finances more value so feel free to subscribe  

if you do have an interest in this type of  content but thanks for watching have a great day