If you’re investing in bitcoin or ethereum and worried about the high transaction fees charged by cryptocurrency exchanges like Coinbase, there is good news on the way!
On Thursday, the zero-commission stock trading platform Robinhood announced that its U.S.-based users will be able to buy and sell bitcoin and ethereum — the two largest cryptocurrencies right now — without any transaction fees starting next month.
As an added bonus, Robinhood will not impose any maximum or minimum limits for cryptocurrency trading, nor will there be any withdrawal limits.
Also, as of today, users can now track the prices and breaking news of some of the biggest cryptocurrencies on the market on their mobile devices.
The new crypto trading feature will be initially launched in the states of California, Massachusetts, Missouri, Montana, and New Hampshire, with the remaining states to follow soon afterward.
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“Now in Robinhood, for the first time, consumers will be able to invest in and trade stocks, ETFs, options, and cryptocurrencies all in one place. You don’t need to have different apps or be checking stocks on Robinhood and then logging into some exchange in Asia to trade your cryptocurrencies. It’s all consolidated,” said Baiju Bhatt, Co-Founder and Co-CEO of Robinhood, alongside Vlad Tenev.
Ever since its launch in 2015, the platform has become a staple equity trading app for U.S. investors, especially among the younger generation. Now that it is offering free crypto trading, Robinhood’s popularity is bound to skyrocket, possibly overtaking leading exchange Coinbase in the near future.
According to Bhatt, Robinhood’s consumer base has grown to more than three million users with a transaction volume of about $100 billion. For a comparison, Coinbase has 13 million customers globally.
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“We’re planning to operate this business on a break-even basis and we don’t plan to profit from it for the foreseeable future,” concluded Tenev. “We’re an established company and we can handle it.”
Side note: For those wondering, the Robinhood platform is unrelated to the Cobinhood (COB) coin or the app. In fact, Robinhood had previously sent a cease-and-desist to Cobinhood for using a similar name.