Robinhood is a buying and selling app and platform that was based in 2013 by two entrepreneurs named Vladimir Tenev and Baiju Bhatt. Their purpose was to create a user-friendly app that may be free and accessible.
In the present day, Robinhood is likely one of the most-used monetary apps on this planet. At first, the app was for buying and selling shares and ETFs. In the present day, customers may commerce cryptocurrencies.
You could be questioning: Is Robinhood crypto any good? Can you purchase Bitcoin on Robinhood, and is it secure 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 property. Right here’s an instance of what you’d get spending $100 on Robinhood vs different websites that permit 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.
Should you’re contemplating buying and selling crypto on Robinhood, we’ve bought 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 consumer expertise buying crypto property. We’ll cowl all that and extra, so preserve 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 providers 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 the fact that state regulation might prohibit buying and selling some cash, so you need to at all times test 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 must always observe right here that Robinhood Crypto holds customers’ cryptocurrency in chilly storage, that means it’s not linked to the web. We’ll go into extra element concerning the security and safety measures Robinhood makes use of later on this overview.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer associates on Robinhood!
Can I Purchase Crypto on Robinhood?
Should you’re asking if Robinhood is nice for crypto, then allow us to show you how to out. We already confirmed you a picture illustrating that you just’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 potential to purchase fractional quantities of the cash you’re fascinated by.
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. Nonetheless, you’ll be able to nonetheless purchase Bitcoin on Robinhood. For instance, you could possibly make investments $100 per thirty days to extend your Bitcoin holdings over time.
Listed here are a few of 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’ll be able to 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 is just not a cryptocurrency advice service. Meaning you’ll must make your personal choices about which cash to purchase and the way a lot to spend. Should you see folks sharing crypto efficiency charts for Robinhood, these are exhibiting private outcomes and never general or statistical outcomes.
Is Robinhood Secure for Crypto?
One of the vital issues earlier than utilizing any digital buying and selling platform is security. Is Robinhood crypto secure for the acquisition of crypto property?
Listed here are the measures that Robinhood has put in place to make it possible for crypto traders are protected.
- As we acknowledged above, they maintain nearly all of traders’ cash in chilly storage, which is “completely disconnected from the web.” That implies that even when Robinhood had been to get hacked, hackers wouldn’t be capable of 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 property 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 workforce that conducts common evaluations of the app’s and web site’s code and infrastructure. They’ve additionally acknowledged 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 property” are protected by insurance coverage. Robinhood hasn’t supplied another info, so that you’ll must resolve in the event you really feel that their safety is ample.
On a associated observe, Robinhood has really useful some safety measures that customers can take to guard themselves. These embrace the next:
- Set a safe password that accommodates no less than 10 characters, ideally a random mixture of higher and lowercase letters, numbers, and symbols. It must be a novel password that you just don’t use for the rest.
- Activate two-factor authentication, also called 2FA. All it is advisable to do is search for 2FA below Safety and toggle the button from Disabled to Enabled.
- Evaluate gadgets which have accessed your account. If in case you have gotten rid of a laptop computer, pill, or telephone, be certain to take away it out of your account.
- Arrange a PIN or password for modifications to your SIM card. Typically, hackers might try and swap the knowledge in your telephone for a brand new SIM card, however in the event you arrange a PIN, they received’t be capable of do this.
- Take into account transferring your cash from Robinhood to a chilly pockets of your personal.
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 property.
Total, we expect that Robinhood crypto safety measures are ample to guard most traders in the event that they take the extra really useful 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 anticipate finding with conventional shares or ETFs, so preserve that in thoughts.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer associates on Robinhood!
Shopping for Crypto on Robinhood
You’re most likely questioning by now how one can 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 should be no less than 18 years outdated, have a sound Social Safety Quantity, and be a authorized resident of the USA, together with the District of Columbia, Puerto Rico, or the US Virgin Islands. Be mindful it might take as much as every week to get your account authorized.
- Fund your account. You’ll be requested to supply and make sure your checking account quantity. With a view to make trades on Robinhood, together with cryptocurrency, you’ll want no less than $1 in your account.
- Select a cryptocurrency to purchase. You’ll be able to select any one of many 19 cash provided by Robinhood. Be mindful there’s a minimal of 1 DOGE if you wish to put money into Dogecoin. All different cash permit for fractional purchases.
- Select the quantity you need to purchase. You’ll be able to 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 every 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’ll use this very same course of to promote cryptocurrency on Robinhood. The one distinction could 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 predict Robinhood is an effective selection for traders who need to get their ft moist with crypto investing. Robinhood doesn’t have the identical variety of cash as some devoted crypto buying and selling platforms reminiscent of Coinbase, however in the event you’re already utilizing Robinhood, then it’s simple so as to add crypto to your holdings.
Listed here are a couple of professionals of utilizing Robinhood for crypto investing:
- Set-up is straightforward and intuitive, and your a part of it may be accomplished in just some 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 effectively reviewed and accessible.
- You should purchase fractional shares of most crypto cash.
- Robinhood has insurance coverage and safety measures in place to forestall traders’ crypto holdings.
As we famous above, cryptocurrency has extra volatility and better danger 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 associates on Robinhood!
Conclusion
Is Robinhood good for crypto? We predict there are some professionals which will attraction to many traders, significantly these desirous to get their ft moist in crypto investing. These embrace fee free buying and selling, the flexibility to purchase fractional shares, and the accessibility of Robinhood’s cellular app.
Some potential cons to think about embrace {that a} Robinhood account solely makes 19 cash out there 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 put money into.
The underside line is that we like Robinhood for crypto, particularly for novices. Intermediate or superior crypto traders might choose a platform with extra superior options and extra cash out there.
Robinhood has put numerous safety measures in place for crypto buying and selling. They permit customers to allow two-factor authentication, requiring a code to be entered for purchasing, promoting, or transferring their crypto holdings. They’ve additionally bought insurance coverage to guard a few of traders’ holdings, and most holdings are stored 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. Should you resolve to improve to Robinhood Gold, you’ll pay $5 per thirty days.
Sure, Bitcoin was one of many first cash on Robinhood and continues to be that can be purchased. There are 18 different cash out there, together with Ethereum, Dogecoin, and extra.
We’ve all learn the tales of hacking and knowledge breaches. There’s no place on-line that’s 100% secure from breaches. That mentioned, Robinhood shops most of traders’ crypto holdings in chilly storage, which implies they’re secure from hacking. As a consumer, you need to create a powerful password, allow 2FA, and preserve monitor of which gadgets entry your account.
