Several investors have been entering to the cryptocurrency world during the last year. Most of the cryptocurrency trading sites have been experiencing difficulties and problems. But it did not mean that they were not taking fees when users were operating in the platform. Robinhood wants to change that.
This situation bothered several investors. They felt that even when paying high fees for trading, the services offered by the exchange were poor. Among these problems we can mention a bad quality support team or service outages.
Robinhood, one of the most important trading apps for millennials, is now launching Bitcoin and Ethereum to its platform. But the most important feature to mention is that it will not include transaction fees. That means that cryptocurrency exchanges like GDAX will now have more competition. If Coinbase is not able to offer lower fees to its users, it is clear where its customers will decide to go.
Robinhood App – Ethereum and Bitcoin
Since February, Robinhood will introduce Bitcoin and Ethereum to its platform. Several investors will have now access to a market that does not take fees when operating. The functionality will be available in some United States’ States and not worldwide.
The company wrote in a statement:
“Next month, round-the-clock, commission-free cryptocurrency trading comes to the Robinhood platform. Trading will be limited to Bitcoin (BTC and Ethereum (ETH), with more coins tradable later. Trading functionality for BTC and ETH will be released gradually in waves to Robinhood residents in California, Massachusetts, Missouri, Montana, and New Hampshire. Robinhood Crypto will be available in more states soon.”
Besides that, the company announced that 16 cryptocurrencies can be added to the watch list. Other features that the company is giving are monitor market data, cryptocurrency news and custom price alerts.
“Today, cryptocurrencies are coming to the Robinhood platform. We believe that cryptocurrencies have the potential to fundamentally reorganize the way money works from the ground up, putting power previously held by financial institutions directly in the hands of the people,” keeps the statement.
Among the 16 cryptocurrencies that are available to be added to the watch list we find: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple and NEO.
In order to start trading, the investor is able to transfer $1,000 dollars instantaneously. If the intention is to trade with larger sums, then the normal ACH transfer system will apply.
It is important to mark that Robinhood still makes money. Robinhood sells a premium account named Robinhood Gold that allows users to have two times more buying power and access to after hours trading. To activate the gold account, the user needs to pay $6 dollars per months. Additionally, Robinhood earns revenue by collecting interest on the cash and securities in Robinhood accounts.