The Robinhood crypto Instant Transfer is not living up to its namesake. It’s just another one of the messes in this odd and ongoing bipartisan situation. So why does Robinhood require a deposit to clear for Dogecoin?
Why doesn’t Robinhood Crypto Instant Transfer work?
Robinhood has temporarily disabled Instant Transfer for crypto purchases. Users will not be able to purchase crypto with funds from a deposit until that purchase settles. This can take up to five business days to complete so that would mean that many will see delays. This also does not effect brokerage accounts.
Robinhood Gold users will also experience these delays, despite their perks of the premium membership. Robinhood says that this will only affect some Gold members as Gold customers who don’t have margin enable won’t be able to do instant deposits. Those who have margin enabled should be fine. Robinhood was not clear on why it was doing this now, but it is likely because of the chaos surrounding the app.
Robinhood Crypto Instant Transfer | Why does Robinhood require a deposit to clear for Dogecoin?
And since Dogecoin is a type of crypto, this means users are susceptible to the same waiting period as others with different kinds of crypto. Robinhood laid out a specific example in its blog post on the matter.
“If you initiate a deposit today, instead of having up to $1,000 of that deposit immediately available in your Crypto Buying Power, none of the deposit will show in your Crypto Buying Power until the deposit is completed (up to five business days after it was initiated). If you initiated a deposit in the last several days and the funds have yet to settle, then up to $1,000 of these funds that were previously available in your Crypto Buying Power will no longer be reflected in your Crypto Buying Power until the deposit is complete (up to five business days after it was initiated).”