Quote from: squatter on October 28, 2018, 08:38:49 PM

Quote from: Prideandprejudice on October 28, 2018, 08:16:59 AM

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!

Robinhood says they keep all coins in their custody, yes. See here:

Quote

Cryptocurrencies that you purchase on the Robinhood platform are stored in a mix of hot (online) and cold (offline) storage. We use cutting-edge security measures that are both process and technology-driven to secure your coins.

Quote from: Kakmakr on October 28, 2018, 08:46:47 AM

If you transfer the coins to your own Bitcoin address, then you own the Private key and only then "own" the coins. Wallet providers also work in the same manner. Wink

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. Roll Eyes