Robinhood Adds 6 Million New Crypto Users in First 2 Months; 2021 Starting With A Bang

Zero commission online brokerage Robinhood revealed that 6 million new users signed up for its cryptocurrency services in the first two months of this year.

The company launched its crypto services three years ago. Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) are the only available cryptos on the platform.

Robinhood Crypto, which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services, recorded high trading volume amidst a sharp rise in the prices of cryptos.

These numbers just show that much like crypto exchanges which have been registering a sustaining number of new peaks in new user sign-ups and volume, the crypto-mania has spread to everyone.

As we reported, in January, the global crypto users broke the milestone of 100 million, and this week, Square also revealed in its earnings report that its Cash App recorded 1 million new Bitcoin users in January 2021, adding to its 3 million throughout 2020.

As for Robinhood’s crypto division, they averaged about 200,000 new customers trading on its platform per month in 2020, the company said in a blog post. “The numbers are clear: 2021 has started with a crypto bang,” it said.

Source: Robinhood

The average transaction size of crypto investors on the platform is around $500.

Robinhood, which also offers stock and options trading, currently allows its customers to only buy, sell, and hold cryptos and recently said it also plans to introduce the ability to deposit and withdraw cryptos to other wallets.

The company is expected to go public this year, with a value of over $20 billion, nowhere near the more than $100 billion valuation crypto exchange Coinbase got. The largest crypto exchange in the US, Coinbase, filed to go public with Nasdaq through a direct listing on Thursday.