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Robinhood Joins Crypto Trading

Samantha Mitchell

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Robinhood Stock Trading

The provider for stock trading mobile application, Robinhood is the latest to have jumped on the bandwagon for cryptocurrency trading. The firm that opened its doors for the first time in 2013 made the announcement on Thursday, 25th January 2018 and cited regularizing the stock trading as its reason for joining this market.

It also revealed that it has plans for rolling out trading services for Bitcoin and Ethereum using its mobile applications by February 2018. Apart from hoping to get the attention of cryptocurrency diehards, it is also launching the services as a way of keeping in touch with some of the momentum that the crypto has witnessed in the recent times.

The Covered Regions

According to Vlad Tenev, who is the co-founder and CEO of Robinhood, cryptocurrencies as an asset have shown underlying and apparent resiliency and have also integrated themselves as part of a balanced and diversified portfolio. Robinhood also clarified that the service would first roll out in the following states in America before expanding to others; Massachusetts, California, Missouri, New Hampshire, and Montana.

According to this firm that is regulated in the United States by the Financial Industry Regulatory Authority {FINRA} and the SEC, it is planning to begin providing these cryptocurrency trading services at no cost. On top of that, it also plans to introduce immediate transfers on the purchases of cryptocurrencies valued at $1,000 or less, as well as a great improvement on the amount of time it takes individuals to purchase cryptocurrencies.

Robinhood’s Target Market

Whereas providing the services at no cost might appear a bit risky, Tenev revealed that the firm is hoping to get the attention of various investors from the $550 billion cryptocurrency market. The company, however, charges for a premium service that is known as Robinhood Gold that allows after hour trading and margin trading. On top of that, Robinhood also acquires revenue through collecting interest on securities and cash in user accounts just as ordinary financial institutions do.

Up to the time this article was prepared {26th January 2018} Robinhood had not created its own crypto wallet but hinted that it would be using the services of a third-party provider. Even though the firm is planning to manage the virtual currencies’ custody on behalf of the users, the CEO said that the company has no intention of making investments with the cryptos that its users store.

Other Cryptocurrencies on the Watchlist

Cryptocurrencies on the WatchlistEven though Robinhood clients will only have immediate access to two cryptocurrencies; Ethereum and Bitcoin, they will be allowed to add other 16 cryptos to their watchlist. This is a special feature that would enable them to monitor the market data, come up with price alerts as well as reading other related news. The list of other cryptocurrency coins that will be possible to include in the watchlist is Litecoin, Bitcoin Cash {BTC}, Dogecoin, XRP {Ripple}, NEO, Omisego, Etheurum Classic, Monero, Zcash, Dash, Qtum, Stellar, Bitcoin Gold, and Lisk.

And, whereas this 5-year old firm is interested in including new virtual currencies in its main trading platform, it will stay away from seemingly complicated classes of assets that are tied to the crypto like the Ethereum or Bitcoin futures.

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