Robinhood

Robinhood Crypto: Bitcoin Cryptocurrency Trading Exchange

Mobile trading app Robinhood recently added cryptocurrency trading to its platform. Find out how it works today in our review.

What is Robinhood Crypto?

Robinhood Crypto is a new platform where you can invest in bitcoin and other cryptocurrencies over a mobile app. Launched in 2015, Robinhood is a popular investment app that lets you invest in conventional securities – like stocks or ETFs. In January 2018, the company announced that it was adding cryptocurrency and bitcoin trading to its platform.

An early access page is available to users at crypto.robinhood.com. As of January 25, over 170,000 have signed up for early access. Robinhood will add crypto trading to its platform in February 2018. Today, the Robinhood app is available to download for Android and iOS.

How Does Robinhood Crypto Work?

Robinhood’s cryptocurrency trading features are accessible from the same interface as the standard Robinhood features. All your cryptocurrencies, stocks, ETFs, and options are available side by side, accessible in one app.

You can buy securities immediately after buying bitcoin, for example, then track everything from one place.

Robinhood emphasizes easy access to funds: wherever you go, you’ll be able to easily invest in whatever asset you desire. You don’t have to miss a major news story and miss out on the next big crypto jump.

In preparation for the launch of crypto trading in February, Robinhood added crypto news and price alerts to its app in January. Today, users can track the price and news for 14 top cryptocurrencies, including bitcoin, Ethereum, Litecoin, and Ripple.

How Much Does Robinhood Cost?

One of the biggest advantages of Robinhood is its no-commission stock trading structure. That’s why the app is named “Robinhood”. Today, crypto exchanges like Coinbase charge fees as high as 5%. Meanwhile, conventional cryptocurrency exchanges charge fees of around 0.3% for the average trade. Robinhood won’t charge any such transaction fees.

The company plans to operate their business on a break-even basis, with no plans to change their commission structure in the foreseeable future. Their focus is on growing a customer base and continuing to serve existing customers more efficiently.

How does Robinhood make money? Does the company just run a charity? No. Robinhood – a company worth $1.3 billion – was built to pool investors’ money into a single pool. Robinhood earns interest from that enormous pool of capital.

Robinhood also has a premium subscription plan called the Robinhood Gold premium tier. That subscription is priced at $6 to $200 per month and lets users borrow between $1,000 and $50,000.

About Robinhood

Robinhood was founded in 2013, with the app appearing online in 2015. The company has raised $176 million from top investors like Andreessen Horowitz, Index, and NEA. These investors collectively value the company at $1.3 billion.

Robinhood was founded by Baiji Bhatt and Vlad Tenev. Today, Robinhood has approximately 3 million users.

How to Place a Crypto Order with Robinhood

Placing a cryptocurrency order with Robinhood is designed to be as straightforward as possible. When the crypto feature launches, you’ll be able to instantly transfer up to $1,000 from your connected bank account (or more, if you have a Gold membership). Any additional funds transferred to the platform will arrive later via ACH transfer (i.e. you can transfer more funds, but you’ll only have instant access to the first $1,000).

This instant access to money is crucial: on other crypto trading platforms, long transfer times can create annoying delays, which means users miss out on price drops and other purchase opportunities.

The entire Robinhood Crypto trading interface features an 80s-style Tron design. This is different from the conventional “day and night” themes on the usual Robinhood trading interface, where day and night indicate whether the markets are open or closed. In the crypto world, the markets never close.

Once you have money in your account, you can place a buy or sell order.

Robinhood gives you an estimated price, connects to a slew of trading venues, exchanges, and market centers to find the lowest price, and uses its economies of scale to score better prices over time.

Robinhood also reduces market volatility by putting a “collar” around your trade. If it can’t execute your trade at close to the estimated price, then Robinhood will wait for the price to return to that “collar” – or return your money.

Robinhood will also support limit orders, which means you can set a price where you automatically buy or sell.

The full list of coins available to track through the Robinhood platform include Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Ethereum Classic, Zcash, Monero, Dash, Stellar, Qtum, Bitcoin Gold, OmiseGo, NEO, Lisk, and Dogecoin.

However, only BTC and ETH will be available for trading when Robinhood rolls out the feature in February. Furthermore, the feature will only be available to Americans in select states at first, including California, Massachusetts, Missouri, Montana, and New Hampshire. More cryptocurrencies and states will be added in the near future.

Robinhood Crypto Conclusion

Robinhood Crypto is an investment app with 3 million users. The app offers no-commission-fee trading to American investors who want to invest in ETFs, securities, and other assets. In January 2018, the company announced it was adding cryptocurrency investing to its platform. Initially, users will be able to purchase Bitcoin (BTC) and Ethereum (ETH) through the platform when the feature launches in February.

You can download Robinhood today from the Google Play Store or iOS App Store. Or, visit online at crypto.robinhood.com to sign up for early access.


Check out all our Robinhood news below. Here you'll find some of our featured Robinhood Crypto content pieces as well as all our latest Robinhood Crypto Trading App posts.

Robinhood Crypto: Bitcoin Cryptocurrency Trading Exchange?

Mobile trading app Robinhood recently added cryptocurrency trading to its platform. Find out how it works today in our review.

What is Robinhood Crypto?

Robinhood Crypto is a new platform where you can invest in bitcoin and other cryptocurrencies over a mobile app. Launched in 2015, Robinhood is a popular investment app that lets you invest in conventional securities – like stocks or ETFs. In January 2018, the company announced that it was adding cryptocurrency and bitcoin trading to its platform.

An early access page is available to users at crypto.robinhood.com. As of January 25, over 170,000 have signed up for early access. Robinhood will add crypto trading to its platform in February 2018. Today, the Robinhood app is available to download for Android and iOS.

How Does Robinhood Crypto Work?

Robinhood’s cryptocurrency trading features are accessible from the same interface as the standard Robinhood features. All your cryptocurrencies, stocks, ETFs, and options are available side by side, accessible in one app.

You can buy securities immediately after buying bitcoin, for example, then track everything from one place.

Robinhood emphasizes easy access to funds: wherever you go, you’ll be able to easily invest in whatever asset you desire. You don’t have to miss a major news story and miss out on the next big crypto jump.

In preparation for the launch of crypto trading in February, Robinhood added crypto news and price alerts to its app in January. Today, users can track the price and news for 14 top cryptocurrencies, including bitcoin, Ethereum, Litecoin, and Ripple.

How Much Does Robinhood Cost?

One of the biggest advantages of Robinhood is its no-commission stock trading structure. That’s why the app is named “Robinhood”. Today, crypto exchanges like Coinbase charge fees as high as 5%. Meanwhile, conventional cryptocurrency exchanges charge fees of around 0.3% for the average trade. Robinhood won’t charge any such transaction fees.

The company plans to operate their business on a break-even basis, with no plans to change their commission structure in the foreseeable future. Their focus is on growing a customer base and continuing to serve existing customers more efficiently.

How does Robinhood make money? Does the company just run a charity? No. Robinhood – a company worth $1.3 billion – was built to pool investors’ money into a single pool. Robinhood earns interest from that enormous pool of capital.

Robinhood also has a premium subscription plan called the Robinhood Gold premium tier. That subscription is priced at $6 to $200 per month and lets users borrow between $1,000 and $50,000.

About Robinhood

Robinhood was founded in 2013, with the app appearing online in 2015. The company has raised $176 million from top investors like Andreessen Horowitz, Index, and NEA. These investors collectively value the company at $1.3 billion.

Robinhood was founded by Baiji Bhatt and Vlad Tenev. Today, Robinhood has approximately 3 million users.

How to Place a Crypto Order with Robinhood

Placing a cryptocurrency order with Robinhood is designed to be as straightforward as possible. When the crypto feature launches, you’ll be able to instantly transfer up to $1,000 from your connected bank account (or more, if you have a Gold membership). Any additional funds transferred to the platform will arrive later via ACH transfer (i.e. you can transfer more funds, but you’ll only have instant access to the first $1,000).

This instant access to money is crucial: on other crypto trading platforms, long transfer times can create annoying delays, which means users miss out on price drops and other purchase opportunities.

The entire Robinhood Crypto trading interface features an 80s-style Tron design. This is different from the conventional “day and night” themes on the usual Robinhood trading interface, where day and night indicate whether the markets are open or closed. In the crypto world, the markets never close.

Once you have money in your account, you can place a buy or sell order.

Robinhood gives you an estimated price, connects to a slew of trading venues, exchanges, and market centers to find the lowest price, and uses its economies of scale to score better prices over time.

Robinhood also reduces market volatility by putting a “collar” around your trade. If it can’t execute your trade at close to the estimated price, then Robinhood will wait for the price to return to that “collar” – or return your money.

Robinhood will also support limit orders, which means you can set a price where you automatically buy or sell.

The full list of coins available to track through the Robinhood platform include Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Ethereum Classic, Zcash, Monero, Dash, Stellar, Qtum, Bitcoin Gold, OmiseGo, NEO, Lisk, and Dogecoin.

However, only BTC and ETH will be available for trading when Robinhood rolls out the feature in February. Furthermore, the feature will only be available to Americans in select states at first, including California, Massachusetts, Missouri, Montana, and New Hampshire. More cryptocurrencies and states will be added in the near future.

Robinhood Crypto Conclusion

Robinhood Crypto is an investment app with 3 million users. The app offers no-commission-fee trading to American investors who want to invest in ETFs, securities, and other assets. In January 2018, the company announced it was adding cryptocurrency investing to its platform. Initially, users will be able to purchase Bitcoin (BTC) and Ethereum (ETH) through the platform when the feature launches in February.

You can download Robinhood today from the Google Play Store or iOS App Store. Or, visit online at crypto.robinhood.com to sign up for early access.


What Happened with the Zero-Fee Cryptocurrency Trading App Robinhood?

Robinhood is one of the most known virtual currency and stock trading applications in the market. They allowed individuals from different states in the US to purchase cryptocurrencies without having to pay for fees at the time of trading.

This was something revolutionizing for the industry. Traditional exchanges have very high fees that do not allow every single user to be profitable performing some trades. And indeed, if the trader performs several transactions, higher fees end up being a lot of money.

The no-fee model presented by the company seemed to have democratized the investing space for every single trader. Furthermore, several experts claimed that Robinhood and no-fee trading platforms could pose a serious threat to traditional exchanges.

However, there have been several individuals questioning how Robinhood was able to charge no-fees in a sustainable way. This is why there were some SEC disclosures in which it was possible to understand how Robinhood was generating income. Robinhood was selling users’ order flow to High-Frequency Trading (HFT) firms.

This situation and discoveries led to more questions about how the platform was handling users’ orders.

Nic Puckrin makes an in-depth analysis of how this business model works. He explains that Robinhood was routing all their order to four different HFT firms known as Citadel Securities, Two Sigma Securities, Wolverine Securities and Virtu Financial.

At the same time, he mentions that Robinhood outlined the financial relationship that the company had with these firms. Each of the orders that Robinhood provided was paid around $0.00026 per dollar.

Robinhood was making money selling users’ orders rather than receiving fees paid by customers. Nevertheless, this is not the first time that Robinhood worked with HFT firms. With its previous startup, Chronos Research, the company developed software that was used by these companies so as to place their orders.

At the moment, the company is offering Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Dogecoin (DOGE) trading services. Users can trade these coins without having to pay for fees.

HFTs look for information and market data says Nic Puckrin. This information they gather they can plug into their trading algorithms. This allows these companies to have a better understanding of what the current retail market flow is. With this data, they improve and enhance their computer models to map order flow and differentiate the retail from the institutional demand.

Institutions know that HFT firms take advantage of market order data. And they try to cover their orders using iceberg orders or using dark pools in OTC markets.

HFTs provide liquidity and drive down the spreads in the market. According to Puckrin the agreement between Robinhood and HFTs is a net gain for end users. By law, Robinhood must choose the best execution for client traders.


Robinhood and Coinbase are Both Making Crypto Exchange Moves as Rivalry is Brewing

Why the Robinhood Crypto Exchange is a Threat to Coinbase

In the field of digital currency trading, Coinbase is amongst the leading platforms worldwide. Coinbase is particularly renowned as a prominent Ethereum and Bitcoin trading platform. However, like other traditional crypto exchanges, Coinbase is faced with the challenges posed by the increasing number of competing platforms set up by offline businesses. One such platform is the Robinhood cryptocurrency exchange, which stated its operation in February this year. At first, the exchange listed only Bitcoin and Ethereum, with other altcoins being added later on.

Additionally, the Robinhood platform provides a trading application to all its user, free of charge. This application has been existent for the past three years. As expected, this feature has drew excitement from several crypto investors who find useful as well as cost-effective.

A majority of crypto investors speculate that the free trading offer mentioned above applies to digital currencies as well. If that is the case, the offer is likely to influence traders to ditch platforms that are presently charging money to offer a similar service. For this reason, exchange platforms that are imposing large fees on their users are faced with risk of mass customer exodus.

Nonetheless, the spokesperson of the Coinbase platform remains confident that the offer would only attract small-scale retail investors. According to him, the wealthy investors would stick to the more established crypto exchanges. As mentioned earlier, Coinbase is an international digital asset trading platform with an approximated 14 million users globally. Therefore, despite the brewing competition among exchange platforms, it is highly unlikely that Coinbase would suffer a significant loss of customers.

As the days go by, more brokerages are venturing into the virtual currency trading business. This is expected to compel existing crypto exchanges to subsidize commission rates so as to compete effectively with these new entrants, most of which are offering affordable rates. As of now, the rates range from 3% to 7%, a figure that is somewhat expensive. Regardless of whether there is competition or not, crypto exchanges need to reduce these charges, mainly because they reduce the profits earned by traders.

How Robinhood Makes Money

Alongside the free stock trading solution, Robinhood offers a service known as Robinhood Gold. This package offers double trading power to clients, as well as access to afterhours trading for a paltry $6 fee on a monthly basis. Notably, this is the only chargeable product in the exchange’s portfolio. Moreover, Robinhood earns money by collecting interests on the assets stored on Robinhood accounts.


Robinhood to Provide Zero-Fee Crypto Trading to Illinois Residents

Robinhood is one of the most talked about digital asset and stock trading applications in the market. They allowed individuals from different states in the US to purchase cryptocurrencies without having to pay for fees at the time of trading. Now, they have announced that they will be opening their services to the State Of Illinois, which makes it the 29th state to receive round the clock trading services.

https://twitter.com/RobinhoodApp/status/1070142441989136384

Although there is a catch, many traders had expected that XRP would be available for trading but evidently, it's not.

https://twitter.com/CoinCarter/status/1070144094809268224

Nonetheless, many in the states where Robinhood’s services are not available said that are eagerly waiting for it to be opened there. The following Tweets are from users who are requesting their services in the state of Washington.

https://twitter.com/xtdisnkfe/status/1070145421589143552

https://twitter.com/keshavnarra/status/1070145180517298179

Robinhood has been noticeably expanding very fast adding 5 states in November and another 2 states, North and South Dakota in November. October had included the states of Rhode Island, Tennessee, Arkansas, Wyoming, and Ohio.

The expansion of the crypto trading app has increased many folds sincee Gretchen Howard, an alumna of Google, joined Robinhood as the vice president of operations. A blog post was earleir released about the hiring saying: “Gretchen will oversee various operational functions that are critical to growing our business, including customer support. Her expertise in scaling operations will help us accelerate our product and business growth even faster.”

The no-fee model presented by the company seemed to have democratized the investing space for every single trader. Furthermore, several experts claimed that Robinhood and no-fee trading platforms could pose a serious threat to traditional exchanges. However, there have been several individuals questioning how Robinhood was able to charge no-fees in a sustainable way. This is why there were some SEC disclosures in which it was possible to understand how Robinhood was generating income.


Robinhood Crypto Trading App Responds to Selling Customer Data Accusations

Robinhood Informs that the Company Does not Sell Customer Information

Robinhood, the zero-fee trading platform has decided to release a statement in which they inform that they do not sell customer information. Robinhood has been accused of selling user data to other firms in the financial world.

Robinhood disclosed its financial report for the second quarter of the current year with the intention to be compliant with the U.S. Securities and Exchange Commission (SEC). The report spread in the community and several analysts believe that the platform is selling information to other companies and earning millions of dollars because of it.

Nonetheless, the Head of Communications of Robinhood, Jack Randall, released a statement on behalf of the company. He explained that Robinhood participates in rebate programs that help customers get additional price improvement for their orders.

https://twitter.com/TheJGR/status/1041687200302157830

Moreover, the platform informed that they are committed towards eliminating conflict of interest at the time of executing the orders of the customers. This is the reason why the platform has the same payment rate with leading execution venues.

The statement released by the company reads as follows:

“Robinhood algorithmically routes orders to a variety of different execution venues based on which is most likely to provide the greatest execution quantity and price improvement on that order in addition to the NBBO. No other facts impact where customers orders are routed.”

Furthermore, Randall clarified that the platform does not sell data from their customers. The company informs that they take the security and privacy of the users ‘extremely seriously.’ In addition to it, he explained that they did not sell customer information in the past and that they do not plan to do that in the future.

Robinhood is the second most valuable private fintech company with more than 4 million customers. The company makes money by lending shares to short-sellers and charging borrowers a fee. Additionally, Robinhood offers a premium subscription service known as Robinhood Gold, which features more advanced features for its users.

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