Withdrawing crypto from Robinhood means converting it to cash and moving that cash to your bank account
Robinhood does not let you send crypto directly to an external wallet. Instead, you sell your crypto holdings for US dollars within the app, then transfer that cash to your linked bank account using the standard withdrawal process. The sale happens instantly, but the bank transfer takes one to three business days depending on your bank.
You cannot withdraw crypto itself—only the dollar value of what you sell. If you want to move actual cryptocurrency to a wallet you control, you would need to use a different exchange that supports crypto withdrawals, such as Coinbase or Kraken.
Key Takeaways
- Sell your crypto holdings in the Robinhood app to convert them to cash; the sale completes in seconds.
- Go to the Account menu, select Transfers, and choose Withdraw to move cash to your linked bank account.
- Bank transfers take one to three business days; weekends and holidays delay the timeline.
- You can withdraw up to the full cash balance in your account, but Robinhood may hold funds if your account is flagged for pattern day trading.
- Robinhood does not support sending cryptocurrency to external wallets or addresses.
Step-by-step: selling crypto and withdrawing cash
Open the Robinhood app and go to the Crypto tab. Find the cryptocurrency you want to sell and tap it. Tap the Sell button, enter the amount you want to sell (in dollars or number of coins), and review the order. Tap Confirm to complete the sale. The transaction settles immediately, and the dollar amount appears in your cash balance.
Once you have cash in your account, go to the Account menu (usually the profile icon at the bottom right). Select Transfers, then Withdraw. Choose your linked bank account from the list. Enter the amount you want to transfer and confirm. Robinhood will show you the expected arrival date, which is typically one to three business days from the date you initiate the transfer.
If you do not see a Withdraw option or your bank account is not listed, check that your account is fully verified. Robinhood requires identity verification and bank account verification before you can move money out. If verification is pending, complete it through the Account settings before attempting a withdrawal.
What happens if your withdrawal is delayed or rejected
Most withdrawals arrive within the stated timeframe, but delays happen. Weekends and federal holidays pause the clock—a withdrawal initiated on Friday afternoon may not arrive until Wednesday. Some banks also take longer to receive transfers than others, particularly smaller regional banks or credit unions.
Robinhood may reject or hold a withdrawal if your account is flagged for pattern day trading. If you have made four or more day trades in a five-business-day period, Robinhood restricts your account and may prevent cash withdrawals for a set period. You will see a message in the app explaining the restriction and when it lifts.
If a withdrawal fails, Robinhood returns the cash to your account balance. Check your email for a notification explaining why. Common reasons include an incorrect or closed bank account, insufficient funds, or a verification issue. Correct the problem and try again.
Linking and unlinking bank accounts
You can link multiple bank accounts to Robinhood, but you can only withdraw to accounts in your own name. Go to Account, then Transfers, then select Linked Banks. Tap Add a Bank Account and follow the prompts to enter your routing number and account number, or connect via your bank's login.
Robinhood verifies new bank accounts by depositing two small amounts (usually under one dollar each) into the account. Check your bank statement for these deposits, then return to the app and enter the amounts to confirm ownership. This process takes one to two business days.
To remove a bank account, go to Linked Banks, select the account, and choose Remove or Unlink. You cannot withdraw to that account once it is removed, but you can add it again later if needed.
Withdrawal limits and fees
Robinhood does not charge a fee to withdraw cash to your bank account. The withdrawal limit is the full amount of cash in your account, minus any holds or restrictions. If you have unsettled funds (cash from a recent sale that has not yet cleared), Robinhood may prevent you from withdrawing that amount until settlement is complete, which is typically one business day.
There is no daily or monthly withdrawal limit stated in Robinhood's terms, but your bank may have its own limits on incoming transfers. Check with your bank if you are withdrawing a large amount and want to confirm it will go through.
If you are a day trader with a restricted account, Robinhood may hold your cash for a period ranging from a few days to several weeks, depending on the severity of the violation. During this time, you cannot withdraw, though you can still trade.
Tax reporting when you sell crypto
When you sell crypto on Robinhood, you trigger a taxable event. The IRS treats crypto as property, not currency, so you owe capital gains tax on the difference between what you paid and what you sold it for. Robinhood sends you a Form 8949 (Sales of Capital Assets) at tax time if you sold crypto during the year.
Keep your own records of purchase price, sale price, and sale date for each transaction. Robinhood's records are useful, but the IRS expects you to report the gain or loss on your tax return. If you sold at a loss, you can use that loss to offset other gains or up to $3,000 of ordinary income in the same year.
Withdrawing the cash does not change your tax obligation—the tax is owed when you sell, not when you move the money to your bank.
Frequently Asked Questions
Can I withdraw crypto directly to a wallet address?
No. Robinhood does not support sending cryptocurrency to external wallets or addresses. You can only sell your crypto for cash and withdraw the cash to a bank account. If you need to move actual crypto to a wallet you control, you would need to use a different exchange.
How long does a withdrawal actually take?
The sale of crypto is instant, but the bank transfer takes one to three business days. Weekends and holidays do not count as business days, so a withdrawal initiated Friday evening may not arrive until Wednesday. Some banks process incoming transfers more slowly than others.
What if I sell crypto but then change my mind before the withdrawal clears?
Once you sell, the transaction is final. You cannot cancel a sale or reverse it. If you want to buy crypto again, you can use the cash in your account to purchase it at any time, even before the withdrawal to your bank completes.
Will Robinhood report my withdrawal to the IRS?
Robinhood reports your crypto sales to the IRS via Form 8949, not your withdrawals. The withdrawal itself is not a taxable event—only the sale is. The IRS cares about the gain or loss when you sold, not when you moved the money.
What if my bank account is no longer active?
Robinhood will reject the withdrawal and return the cash to your account. Remove the old bank account from your linked accounts and add a new one. You will need to verify the new account with the two small deposits before you can withdraw to it.