With the recent open of the US stock market and the resulting trading rush, new users are flocking to the Robinhood app on iOS and Android. Many immediately encounter the Robinhood “Not enough buying power” message, though. For anyone confused by the notification, here’s a buying power explainer and how to stop the Robinhood pop-up. Crypto, stocks, and options will all become purchasable with a little know-how.
Robinhood ‘Not enough buying power’ fix
A lot of users have reported that they can’t buy crypto on Robinhood, including Dogecoin. The issue isn’t exclusive to cryptocurrencies, however, as purchasing regular stocks and options also requires a certain amount of buying power. But, how can users increase Robinhood crypto buying power?
To meet the required buying power on Robinhood, a user must hold at least +5% of the total value being invested. If GameStop ($GME) is at $200 per share, to meet the required buying power per share, the account must have at least $210. The same goes for cryptocurrencies, though crypto itself can not count as collateral. This means that users must meet the appropriate crypto buying power (displayed price +5%) in cash.
In the above example, the $200 GameStop ($GME) market order could go through anywhere between $190 and $210. Before Robinhood will authorize a trade, users need to cover the high end. Having the extra funds to cover that additional 5% is how to get enough buying power on Robinhood. It’ll also get rid of the not enough buying power notification, which is a win in itself.
People recently rushed to download Robinhood in an effort to purchase soaring GameStop stock, eventually causing the trading application to crash. In response, $GME purchases received a temporary ban before returning in a limited capacity. The decision has drawn a lot of criticism, along with allegations of the app auto-selling stock. In response, GameStop investors have filed a lawsuit against Robinhood.