Bitcoin Forum

Hello. Can someone help me with this question below? Thank You
Does Robinhood hold custody of the bitcoin I buy from them? Do they have the private keys? Or does someone else hold custody. Thanks!

I am not sure, I was under the impression buyers at robinhood were not actually buying bitcoin but a derivative, there are no coins or private keys. someone correct me please if that is not the case.

That's what I'm afraid of. I posted the same question on their help website. Thanks! I might have to go back to buying from coinbase.

They say nothing about this in their FAQ and I figure they work the same as any other exchange that sells coins or securities. The Bitcoin addresses that they use, is their property and you cannot even ask them to sign those private keys on your behalf, because you do not own them.

If you transfer the coins to your own Bitcoin address, then you own the Private key and only then "own" the coins. Wallet providers <Web wallets> also work in the same manner.  ;)

while it's good for trading and opens to a broader audience, the concept is odd to buy bitcoin because one believes in it while not using it themselves,
but Robinhood is more of a broker? either way, one should make sure they've got their bitcoin in their own wallet.

I don't know much about Robin Hood and how the function and operate but if there are legit source of purchasing bitcoin you would have paid and gotten your bitcoin directly into the wallet you imputed which you have the private key to.

Robinhood says they keep all coins in their custody, yes. See here (https://support.robinhood.com/hc/en-us/articles/360001284463-Cryptocurrency-Security):



Unfortunately, you can't actually withdraw coins from Robinhood, even though the coins are supposedly held in their custody (not derivatives). It's strictly an investment platform where they hold all assets. Supposedly, cryptocurrency deposits and withdrawals are coming in the future.

I actually just mentioned that to strengthen my point that you do not own the bitcoins, if you do not have sole access to the private keys. This was one of the reasons why I did not want to use this service, because Robinhood is just shifting numbers around in their own internal database and you will never own the bitcoins/assets that you bought.

I doubt that withdrawals will be implemented in the near future, because you do not have to own any bitcoins if you manage your own internal ledger. <Not saying that it is, because they are being audited, but it might be tempting>  ::)