Keep in mind, you cannot withdraw or send bitcoin from apps like Robinhood, Revolut etc. They don’t actually sell bitcoin, they sell a number pegged to the bitcoin price.

Remember: not your keys, not your bitcoin! If you cannot even send bitcoin to an address that you are in control of (like you can from an exchange to your own wallet) – you don’t actually possess/control any bitcoin.
Also, you don’t get any coins from potential forks.

Please let’s keep that in mind and not recommend these options for beginners (unless withdrawals are allowed). It’s highly misleading and unethical in my view.

Revolut: [1]( [2](
(also can confirm as Revolut user myself)

Robinhood: I couldn’t find any infos on their site itself, but the comments in this thread suggest that withdrawals in bitcoin are not possible, for the time being at least:

Robinhood’s official FAQ doesn’t mention withdrawals, only that bitcoin deposits are not allowed:

This review site says that withdrawals to external wallets are not allowed (scroll down, under “pros and cons”:

edit: I found posts with users saying that their Robinhood in-app FAQ says withdrawals are possible after KYC verification (bank account, ID selfies etc):
Their website FAQ doesn’t make any statement on this though, so mixed reports so far. Would be good to hear from users with direct experience, if they have been able to withdraw bitcoin.

edit2: answer from Robinhood support, not really helpful:

> Hi there,

> Thanks for reaching out.

> We don’t have any additional information about Robinhood Crypto at this time, but look forward to sharing more details soon.

> In the meantime, you can learn more about Robinhood Crypto in our blog, or by visiting our Help Center.

View Reddit by TheGreatMuffinView Source

23 thoughts on “Keep in mind, you cannot withdraw or send bitcoin from apps like Robinhood, Revolut etc. They don’t actually sell bitcoin, they sell a number pegged to the bitcoin price.

  1. sg77 February 12, 2018 / 11:20 pm

    For Robinhood, I’m pretty sure that the FAQ that you linked to on their website previously said something about withdrawals being allowed if you verify your identity.

    But now they seem to have removed that info from the FAQ. (The FAQ I looked at before was on their website, not in-app. The URL was slightly different but it shows the same text now as your URL.)

    It’s still unclear what the answer is. If they decided to not allow withdrawals, I would think that the FAQ would specifically mention that. Maybe they’re tweaking the requirements for withdrawals.

    Related to this, the Square Cash app lets you withdraw (after verifying your identity); some people have posted on reddit that it worked.

  2. shanita10 February 12, 2018 / 11:20 pm

    This is a huge risk for default. If bitcoin moons, they would not contribute to the price or demand, but could face a catastrophic bank run.

  3. Noinjury February 12, 2018 / 11:20 pm

    Lets see how it works when they finally release it

  4. walloon5 February 12, 2018 / 11:20 pm

    If Robinhood owns stock for you, do they have to transfer it to your name and custody if you want the actual stock, or is that not possible?

  5. jchang23 February 12, 2018 / 11:20 pm

    Wait, isn’t this the same like a bucket shop?

    “As defined by the U.S. Supreme Court, a bucket shop is “an establishment, nominally for the transaction of a stock exchange business, or business of similar character, but really for the registration of bets, or wagers, usually for small amounts, on the rise or fall of the prices of stocks, grain, oil, etc., there being no transfer or delivery of the stock or commodities nominally dealt in.

    A person who engages in the practice is referred to as a bucketeer and the practice is sometimes referred to as bucketeering.”

  6. jeetsidhu_ February 12, 2018 / 11:20 pm

    This a good point by OP. I’ve been recommending [Abra]( exactly for this reason. It’s non-custodial so you own your own private keys. They have iOS and Android apps and you can buy BTC and ETH.

    I signed up for Square Cash to test it last week but I’m still waiting to hear back on when my verification comes through.

  7. ActionSmurf February 12, 2018 / 11:20 pm

    Robinhood gets money from you, they buy bitcoins (“for you”) they keep those bitcoins, they now hold a significant amount of BTC under their control and can play the dump & pump game.

    On the other side, it could just be a ponzy with no bitcoins involved at all, they would just disappear if too many people wanna cashout

  8. cryptobodget February 12, 2018 / 11:20 pm

    I have been hearing this about Revolut too, but couldn’t believe it was true, I was like, what’s the fucking point of that then?!

  9. stevev916 February 12, 2018 / 11:20 pm

    so its like the tether of bitcoin

    im sure that will end well

    i will delete robinhood app until this changes. stocks dont bother me, but gotta hold my keys

  10. maltygos February 12, 2018 / 11:20 pm

    woah if it is real, it baffles me how i saw a lot of positive reviews/comments 2 weeks ago…

    maybe the russia destroying usa democracy with twitter bots is not that insane…

  11. digiiital February 12, 2018 / 11:20 pm

    Think, you can’t be hacked if there is nothing to steal.

  12. qqq888 February 12, 2018 / 11:20 pm

    Guess they are just doing it to avoid credit card fraudz

    they make it “easy” to buy bitcoins with credit card but then if you want to withdraw they make you wait for some weeeks to “verify all the info” but guess they are just waiting for the chargeback to happen in case its a fraudulent transaction.

  13. zomgitsduke February 12, 2018 / 11:20 pm

    Wild situation, but these companies, upon discovery of crypto being ultra-valuable (like 100x increase), decide that they would “pay out” all crypto holdings to their users in USD and drop you from your holdings.

    Anyone able to check the terms of service to see if this could be done?

  14. kernelzeroday February 12, 2018 / 11:20 pm

    Total FUD. Website says plain as day withdrawal is explicitly permitted. Please remove your post. If I had not been up all night I would dig around and find it.

  15. isoldmywifeonEbay February 12, 2018 / 11:20 pm

    The main issue is whether the funds are insured if the company collapses. Can someone confirm? If they are, and you plan only holding and not spending, then it’s not a huge issue.

    If you wanted to start transacting, you could just sell them and buy them from an exchange.

  16. Crypt1cCrypt0 February 12, 2018 / 11:20 pm

    This is the same with Square Cash.

    A lot of people were overjoyed by the news of these companies stepping up to offer Bitcoin sales, however this *major* point of the inability to even deposit your own crypto into the system is a major turn off. Indeed, we would like to get to the point of cryptocurrency which is to send and receive is it not?

  17. hodleeznuts February 12, 2018 / 11:20 pm

    I use Robinhood to buy all my crypto stocks! It even has a USD on the front so you know how much real money you have! Aren’t crypto stocks great?!

  18. Emmanuel_Goldstein30 February 12, 2018 / 11:20 pm

    So robinhood is like a bank, creating money (bitcoin in this case) out of thin air.

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