5 Classic Ways How To Make Money On Robinhood In 2022

Are you looking for ways how to make money on Robinhood with smart investing? You can grow your money today and earn passive income investing with your smartphone or computer.

Robinhood is a perfect platform for anyone who wants to start investing. It makes investing simple, especially for first-time investors.

With just a few taps, you can sign in to the Robinhood markets and begin investing or crypto trading without worrying about commission fees.

You can also track your share earnings, trade stocks and check your active trades, and stay updated on crypto and stock market trends that affect your portfolio without having to leave the app.

Making money with Robinhood may be your way to financial freedom!

What Is Robinhood?

Robinhood is a commission-free stock and crypto trading app that makes it easy for beginner investors to invest in the market.

You can buy and sell stocks, ETFs, options, and cryptocurrencies without paying a penny in commissions.

These are some of the best investments if you want to keep investing simple!

Robinhood was founded in 2013 with the goal of disrupting traditional brokerage services. The business wanted to create a user-friendly investing platform that gives all investors equal access to the markets, and they’ve done just that.

With Robinhood, you can invest in the stock market with just a few dollars and own a share of the biggest companies in the world like Amazon, Facebook, and Apple. Plus, you can invest in exciting new startups before they go public.

There is no crystal ball for investing, but Robinhood offers plenty of essential research and investing tools that can help you select the top movers and guide you to make effective buying decisions.

These resources and other great Robinhood features will help you become a successful investor.

Robinhood Features

Robinhood Review sign up

Robinhood is a trading platform that has revolutionized how people invest in the stock market with their mobile-first approach to investing.

You can see your financial future with the tap of your finger, and it’s available on both iOS and Android. The app offers many features that will help you grow your money.

Fractional Shares

Robinhood allows you to invest in fractional shares, which means you can buy parts of high-valued company shares like Apple (AAPL), which is worth over $170 per share at the time of writing, for a fraction of the cost.

Buying fractions of shares is helpful if your investment cash is limited to only a few hundred dollars. This will allow you to buy shares in some of the best-performing company stocks on the market, even if they have high stock prices.

Fractional shares allow you to invest in a wide variety of companies in the stock market and are a great way to invest your first $1,000.


cryptocoins with USD bills

Making money through cryptocurrency trading has never been easier. You can trade Bitcoin, Ethereum, and other cryptocurrencies on the market.

Buying cryptocurrency is as easy as buying a stock on Robinhood, thanks to real-time market data for both crypto and stocks.

This is an excellent option for experienced investors who want to diversify their portfolios. Also, day traders can make money by selecting cryptocurrencies that will increase in value.

If you are a beginner, we suggest starting by investing in the stock market and ETFs, as cryptocurrencies are much more volatile.

Margin Trading

Do you think a company’s stock price will increase? You can still buy low on Robinhood even if you don’t have the cash on hand for as many shares as you want.

Margin trading lets you borrow money for your brokerage account to buy company stocks at a low expected value, allowing you to take advantage of price dips and score big returns when it rebounds.

Then, you can sell high and make money!

Trading on margin is very simple with Robinhood Gold. Just keep in mind that you will be charged interest on your settled margin amount.

Margin trading offers higher returns but at a higher risk. This is an excellent option for more advanced investors who understand how to manage their risk.

How To Make Money On Robinhood

Passive Income Apps money from your phone

Free Stocks

With Robinhood, you can get a free stock fractional share when you sign up for an account.

Few other platforms give you free stocks for signing up, and with Robinhood, you could potentially gain a freebie including stocks from companies like Apple, Tesla, Amazon, and even meme stocks like Gamestop.

Right now, Robinhood is giving out a free stock with a value of up to $200 for new app users.

You just have to have a linked bank account to qualify, but be careful because you only have 60 days to select your free stock.

Dividend Income

When you buy a stock that pays dividends, you’re entitled to a small percentage of the company’s profits. As long as the company makes money, you get paid for holding their stock.

When one of your stocks starts producing dividends, you can reinvest them to multiply your returns.

Robinhood’s service for reinvesting profits is called dividend re-investment or DRIP.

The DRIP service has a unique dividend bot that analyzes your portfolio and uses machine learning to find opportunities for you to reinvest your dividends with stocks that might offer better returns.

Asset Appreciation

M1 Finance vs. Robinhood Gold coins and seed in clear bottle on cityscape photo blurred cityscape background,Business investment growth concept

Robinhood allows you to start investing in companies with a bright future whose stock prices are expected to rise.

Retail investors or even company investors use this information to invest in these stocks before the price goes up, then sell them once the price has increased.

A cornerstone philosophy that successful traders and investors generally use is to buy low and sell high.

Asset appreciation is often a longer-term play rather than a fast track to quick cash. Keep in mind that assets in the stock market don’t always increase in price, and you can lose money if the stock price drops.


An IPO, or initial public offering, is when a private company starts offering public shares.

Since Robinhood offers access to some IPOs, you can start investing in newly available stocks, which can pay off big.

You’ll want to do your due diligence to research a newly public company before investing though.

When a company decides to go public for the first time, its stock price can skyrocket. You can make money on IPOs by investing in a startup business because of its potential to boost after going public.

Time: The Waiting Game

Constantly looking at your crypto portfolio and graph of return on money invested in the stock market can be stressful. It can be easy to be disappointed by the market’s volatility.

However, you don’t have to monitor your stocks 24/7 like many investors!

While other investors are constantly changing financial products and investing in different things in the hopes of making money, you can rest easy knowing you have time on your side.

Playing the waiting game will give your assets time to grow thanks to compound interest. Sure, Robinhood offers commission-free trading, but that doesn’t mean you have to be the investor who is constantly buying and selling to make money.

If you invest over a long time horizon and leave your money where it is, you will often out-perform other investors and make more revenue.

Robinhood Pros & Cons

woman checking her investment app


  • No commission fees – Robinhood doesn’t charge any trading fees, which means you don’t have to pay them every time you place a trade.
  • Easy-to-use interface – With a simple and intuitive interface, Robinhood makes it easy to manage your investment portfolio.
  • Free stock – You don’t have to pay anything to get a free stock with Robinhood.
  • No account minimums or monthly maintenance fees –  Robinhood does not require you to have a minimum amount in your account.
  • Mobile app – Robinhood allows you to execute stock trades using your iPhone or Android phone. The app has no ads, requires no account minimums, and works in real-time to let you make intelligent decisions for your investments at any time of day.
  • Regulatory oversight – Regulated by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).


  • Lack of advanced research tools – There are not as many educational or research resources available to investors without upgraded accounts.
  • Limited investment options – No mutual funds, bonds, or other fixed-income assets are available. You can only purchase individual stocks, ETFs, options, and crypto through the app.
  • Retirement funds not available – Robinhood only offers a taxable brokerage account type. You can’t open an IRA.
  • Not truly fee-free – If you want to participate in margin trading or get access to better research, you will have to opt for an upgraded Robhhood Gold account, which has a monthly subscription fee.
  • Focused on trading often – Robinhood is intended for short-term investors who want to make money on the stock market, so it encourages active trading to increase the number of customer orders.

Other Stock Platforms

  • Betterment: Betterment is a Robo-advisor that offers a variety of investment strategies and portfolio types to accommodate everyone, from beginners who want guidance to seasoned investors who want full control. See our full review of Betterment here.
  • Acorns: Acorns is a mobile platform that rounds up your daily purchases to the nearest dollar. It then invests the difference for you automatically. Check out what we think of Acorns vs. Robinhood.
  • M1 Finance: M1 Finance is a Robo-advisor investment platform that offers automated investing services. Here’s our review of M1 Finance.
  • Coinbase: Coinbase is a digital wallet that allows you to buy, use, and sell cryptocurrency securely. Read our article about Coinbase and other alternative crypto services.

Final Thoughts

robinhood investing software

Robinhood is a fantastic trading platform that has gained a lot of traction in recent years. The platform is designed for short-term investors looking to profit from trading individual stocks and options or cryptocurrencies.

Robinhood does not charge any fees, which is a great feature compared to regular brokerage companies. You can sign in to the app and begin investing for free from your phone!

Other platforms like Betterment, Acorns, or M1 Finance may be a better option if you’re searching for automated investment or Robo-advisor trading services.

Robinhood has no commissions and lets you get started investing with just a few hundred dollars, plus they’ll give you a free stock just for signing up. Using Robinhood, you can put your money to work for you and start growing your investments.