As the years go by, Cryptocurrency earns more fame. This is no shock to you because you’ve probably seen people use or talk about it.
You might be a cryptocurrency enthusiast, as well as a stock trading fan, but haven’t started trading yet. Robinhood is the perfect platform for you to trade regardless of its occasional constraint on cryptocurrency purchases.
As an experienced investor in the crypto globe, and a Robinhood operator, you might have in mind purchasing that trending currency, which poses greater investment returns after some time but no!
You can’t perform the operation or make the order; Don’t worry, you are not alone; we got you covered on this. But what could be their possible explanation for this?
Read this content, get the answer you seek, then do the needful.
Yes, you don’t know why! But find out below.
Why I Can Not Buy Crypto On Robinhood?
Several factors are responsible for your inability to place a market order:
1. Insufficient Buying-Power
In Robinhood, the buying power is the amount of funds available for investment. This is true for Cryptocurrencies because they are significant and non-marginal assets.
Hence, are not used as financial assurance (collateral). To place a market order for cryptocurrency, there has to be enough balance in your Robinhood account.
This can only be done by plopping money into the account.
2. Your Account Is Flagged As A PDT (Pattern Day Trader)
If you purchase stock or crypto in less than 5 business days, then your account becomes flagged. And making buy orders that causes your stock value or marginal account balance to reduce to anything less than $25,000 is called Pattern Day Trading.
As a pattern day trader you cannot make orders that will drop your account to <$25,000
For example:
You have $25,400 in your marginal account and you want to place a buy order for bitcoin worth $700; the transaction will not be processed;
rather you will be notified to fund your account. Why? This is because the $700 order will lower your account value to $24,700.
3. Trade Restricted Account
If your affiliate account is banned, it can lead to a trade restriction on your Robinhood crypto account.
Take, for instance, Let’s say your Financial account has been restricted by Robinhood to hinder stock purchases, buying of cryptocurrency may be restricted also until the constraint is lifted.
4. Inadequate Capital For Minimum Margin
If you operate a gold account and use the gold buying power, you are not enabled to place a cryptocurrency buy order in your crypto account because doing that will make you drop below your gold account’s minimum margin.
Similarly, in a Robinhood gold account, you are not permitted to place buy orders that will make you drop under your PTD lowest amount.
5. Brokerage Malfunction
In rare situations RobinHoods’ program may fail without notice, this can cause a system error that will limit you from placing crypto orders.
Also Read: Does Robinhood Affect Credit Score?
Conclusion
The points listed above are the possible reasons why you can’t make crypto purchases on your Robinhood account, find out the reason peculiar to you, and contact Robinhood customer support if you can’t fix it.
