Robinhood is a buying and selling app and platform that was based in 2013 by two entrepreneurs named Vladimir Tenev and Baiju Bhatt. Their objective was to create a user-friendly app that might be free and accessible.
As we speak, Robinhood is without doubt one of the most-used monetary apps on the earth. At first, the app was for buying and selling shares and ETFs. As we speak, customers also can commerce cryptocurrencies.
You may be questioning: Is Robinhood crypto any good? Can you purchase Bitcoin on Robinhood, and is it protected to purchase Bitcoin on Robinhood?
Robinhood’s crypto buying and selling charges are low when in comparison with others available on the market for crypto belongings. Right here’s an instance of what you’d get spending $100 on Robinhood vs different websites that enable for crypto buying and selling.
As you’ll be able to see, you’d get 2.41% extra crypto on your cash on Robinhood crypto than you’ll on Kraken, and a couple of.35% greater than you’ll on Coinbase.
In the event you’re contemplating buying and selling crypto on Robinhood, we’ve received the solutions you want. Earlier than you begin shopping for cryptocurrency on Robinhood, it’s vital to know concerning the app’s options, safety, and person expertise buying crypto belongings. We’ll cowl all that and extra, so hold studying to get the small print!
What’s Robinhood Crypto?
Robinhood began as a inventory and ETF buying and selling platform. In 2018, with a waitlist of greater than two million prospects, they launched commission-free buying and selling of Bitcoin and Ethereum in a number of states.
Robinhood is an digital brokerage and as such, is regulated by FINRA and registered with FinCEN as a cash companies enterprise.
By 2021, Robinhood was offering cryptocurrency buying and selling to customers in each state plus the District of Columbia, Puerto Rico, and the US Virgin Islands.
Crypto choices began with simply Bitcoin and Ethereum, however have since expanded to incorporate Dogecoin, Litecoin, Shiba Inu, and 14 others on your crypto wallets. Remember that state legislation could prohibit buying and selling some cash, so you must at all times verify to make certain of the principles. For instance, buying and selling of USD coin is prohibited in New York and Texas.
What we like about Robinhood Crypto is that it makes use of the identical, user-friendly interface as Robinhood. That implies that it’s simple for starting crypto traders so as to add cryptocurrencies to their portfolios.
We should always notice right here that Robinhood Crypto holds customers’ cryptocurrency in chilly storage, that means it’s not related to the web. We’ll go into extra element concerning the security and safety measures Robinhood makes use of later on this evaluate.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer mates on Robinhood!
Can I Purchase Crypto on Robinhood?
In the event you’re asking if Robinhood is sweet for crypto, then allow us to enable you to out. We already confirmed you a picture illustrating that you simply’ll get extra crypto on your cash once you commerce by means of Robinhood than you’ll with different crypto buying and selling platforms.
One of many options we like greatest about Robinhood Crypto is that it’s doable to purchase fractional quantities of the cash you’re focused on.
For instance, as of November 18, 2024, a single Bitcoin opened at $89,601.77. Most starting traders don’t have that quantity to spend. Nevertheless, you’ll be able to nonetheless purchase Bitcoin on Robinhood. For instance, you can make investments $100 per thirty days to extend your Bitcoin holdings over time.
Listed here are among the options of Robinhood Crypto that we like greatest.
Any US citizen or everlasting resident with a Social Safety Quantity and a everlasting residence within the US can commerce crypto on Robinhood.
Robinhood permits for buying and selling of 19 completely different cryptocurrencies, greater than many different on-line brokers.
Robinhood is regulated by FINRA and registered with FinSEC.
You may make investments as a lot or as little in cryptocurrency as you need. (The one exception is Dogecoin, the place there’s a minimal buy requirement of 1 Dogecoin.)
Robinhood permits traders to maneuver cryptocurrencies out of safe storage and right into a separate crypto pockets in the event that they select.
Robinhood shouldn’t be a cryptocurrency suggestion service. Meaning you’ll must make your individual choices about which cash to purchase and the way a lot to spend. In the event you see individuals sharing crypto efficiency charts for Robinhood, these are exhibiting private outcomes and never general or statistical outcomes.
Is Robinhood Protected for Crypto?
One of the crucial vital concerns earlier than utilizing any digital buying and selling platform is security. Is Robinhood crypto protected for the acquisition of crypto belongings?
Listed here are the measures that Robinhood has put in place to ensure that crypto traders are protected.
As we said above, they maintain nearly all of traders’ cash in chilly storage, which is “fully disconnected from the web.” That implies that even when Robinhood had been to get hacked, hackers wouldn’t be capable to get to your cash.
Whereas Robinhood accounts and crypto investments aren’t insured by the FDIC or the SIPC, Robinhood carries crime insurance coverage that protects, as they are saying, “a portion of the belongings held throughout our storage techniques.” The insurance coverage coverage is underwritten by Lloyd’s syndicates, which is the world’s main insurance coverage market.
Robinhood Crypto has a devoted safety staff that conducts common evaluations of the app’s and web site’s code and infrastructure. They’ve additionally said that they pay for normal third-party testing.
This stuff are all good. We do need to level out language which may be of concern to some traders, particularly that “some” cash are held in chilly storage and “a portion of the belongings” are protected by insurance coverage. Robinhood hasn’t offered every other info, so that you’ll must determine when you really feel that their safety is enough.
On a associated notice, Robinhood has really helpful some safety measures that customers can take to guard themselves. These embrace the next:
Set a safe password that accommodates at the very least 10 characters, ideally a random mixture of higher and lowercase letters, numbers, and symbols. It needs to be a novel password that you simply don’t use for anything.
Activate two-factor authentication, also called 2FA. All you want to do is search for 2FA underneath Safety and toggle the button from Disabled to Enabled.
Assessment gadgets which have accessed your account. You probably have gotten rid of a laptop computer, pill, or cellphone, be sure to take away it out of your account.
Arrange a PIN or password for adjustments to your SIM card. Typically, hackers could try to swap the data in your cellphone for a brand new SIM card, however when you arrange a PIN, they gained’t be capable to try this.
Take into account transferring your cash from Robinhood to a chilly pockets of your individual.
As some extent of comparability, Coinbase provides state-of-the-art encryption and a multi-level withdrawal system to guard traders’ cryptocurrency holdings and crypto belongings.
Total, we expect that Robinhood crypto safety measures are enough to guard most traders in the event that they take the extra really helpful steps outlined above.
We’d be remiss if we didn’t level out that cryptocurrency investments are inherently dangerous. There’s much more volatility than what you’d look forward to finding with conventional shares or ETFs, so hold that in thoughts.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer mates on Robinhood!
Shopping for Crypto on Robinhood
You’re in all probability questioning by now easy methods to purchase crypto on Robinhood. We’ve created this fast, step-by-step information that can assist you enhance your crypto wallets and crypto trades.
Open a Robinhood account. To take action, you’ll must be at the very least 18 years outdated, have a legitimate Social Safety Quantity, and be a authorized resident of the USA, together with the District of Columbia, Puerto Rico, or the US Virgin Islands. Consider it might take as much as per week to get your account permitted.
Fund your account. You’ll be requested to supply and ensure your checking account quantity. With a purpose to make trades on Robinhood, together with cryptocurrency, you’ll want at the very least $1 in your account.
Select a cryptocurrency to purchase. You may select any one of many 19 cash supplied by Robinhood. Consider there’s a minimal of 1 DOGE if you wish to spend money on Dogecoin. All different cash enable for fractional purchases.
Select the quantity you need to purchase. You may specify any quantity of a greenback or extra.
Specify whether or not you need to make a one-time commerce or a recurring one. Some traders select to purchase further cash as soon as per week or as soon as a month, for instance.
Place your order. The ultimate step is to click on the “Submit Purchase” button to finish the transaction.
You’d use this very same course of to promote cryptocurrency on Robinhood. The one distinction can be that the button would say “Submit Promote”.
Is Robinhood the Proper Selection for Your Crypto Journey?
Do you have to use Robinhood to purchase crypto?
We expect Robinhood is an efficient alternative for traders who need to get their toes moist with crypto investing. Robinhood doesn’t have the identical variety of cash as some devoted crypto buying and selling platforms equivalent to Coinbase, however when you’re already utilizing Robinhood, then it’s simple so as to add crypto to your holdings.
Listed here are a number of professionals of utilizing Robinhood for crypto investing:
Set-up is straightforward and intuitive, and your a part of it may be accomplished in only a few minutes.
Crypto makes its cash from quantity rebates from buying and selling venues, however it doesn’t cost commissions to traders.
Robinhood’s cellular app is properly reviewed and accessible.
You should buy fractional shares of most crypto cash.
Robinhood has insurance coverage and safety measures in place to stop traders’ crypto holdings.
As we famous above, cryptocurrency has extra volatility and better threat than another investments. It is best to solely spend as a lot shopping for cryptocurrency as you’ll be able to afford to lose and at all times attain out to Robinhood help with any questions.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer mates on Robinhood!
Conclusion
Is Robinhood good for crypto? We expect there are some professionals which will enchantment to many traders, notably these eager to get their toes moist in crypto investing. These embrace fee free buying and selling, the power to purchase fractional shares, and the accessibility of Robinhood’s cellular app.
Some potential cons to contemplate embrace {that a} Robinhood account solely makes 19 cash accessible for buy, far fewer than another crypto buying and selling platforms. Whereas there are some articles to learn, it’s additionally not the place to analysis which cryptocurrencies to purchase. You’ll must spend a while investigating your choices and deciding which cash to spend money on.
The underside line is that we like Robinhood for crypto, particularly for newbies. Intermediate or superior crypto traders could desire a platform with extra superior options and extra cash accessible.
Robinhood has put quite a few safety measures in place for crypto buying and selling. They permit customers to allow two-factor authentication, requiring a code to be entered for getting, promoting, or transferring their crypto holdings. They’ve additionally received insurance coverage to guard a few of traders’ holdings, and most holdings are saved in chilly storage the place they can’t be accessed from the online.
No. Robinhood doesn’t cost buying and selling charges for crypto. They make their cash on rebates from crypto buying and selling venues. In the event you determine to improve to Robinhood Gold, you’ll pay $5 per thirty days.
Sure, Bitcoin was one of many first cash on Robinhood and remains to be in the stores. There are 18 different cash accessible, together with Ethereum, Dogecoin, and extra.
We’ve all learn the tales of hacking and information breaches. There’s no place on-line that’s 100% protected from breaches. That mentioned, Robinhood shops most of traders’ crypto holdings in chilly storage, which implies they’re protected from hacking. As a person, you must create a robust password, allow 2FA, and hold monitor of which gadgets entry your account.
