Robinhood Crypto Review

Robinhood Crypto Review

Karen Tren
Fact Checked
Sep 12, 2022

Robinhood is the largest online stock brokerage that offers commission-free trading in U.S. stocks, exchange-traded funds (ETFs) and cryptocurrencies. The company was founded in 2013 by Vlad Tenev and Baiju Bhatt, and as of September 2022, Robinhood had 23 million users with a value of $100 billion in transactions.

In this guide, we will overview the Robinhood platform with an emphasis on Robinhood Crypto for investors in the United States. Find out why they are the most popular platform in the US to trade over 15 cryptocurrencies and crypto options.

Table of Contents

Robinhood Crypto Highlights

Platform Highlights

  • Over 15 Cryptos to buy, sell and trade options.
  • Zero trading fees and tight spreads on all markets.
  • In-built Robinhood Crypto Wallet for full user self custody.

Robinhood Crypto Overview

Robinhood Crypto is a new platform that allows investors to trade cryptocurrencies alongside more traditional investments. The exchange offers a simple and easy-to-use interface that is ideal for first-time crypto users. The platform enables US investor to buy and sell crypto and cryptocurrency options. You can also set up price alerts so that you can be notified when a certain cryptocurrency reaches a certain price.

Robinhood Crypto Review

The core features of Robinhood Crypto include:

  • Over 15 digital assets to buy and sell.
  • Robinhood Crypto Wallet to deposit and withdraw supported assets with low fees.
  • Crypto Options to buy or sell Calls and Puts for supported coins.
  • Zero trading fees and tight spreads.
  • Industry-leading security with automated cold storage and insurance.

What Cryptos does Robinhood Support?

The Robinhood Crypto trading platform currently supports trading and real-time market data for 15 cryptocurrencies. These tokens include:

That said, it is important to note that AVAX, ADA, COMP, MATIC, SHIB, SOL and UNI are not available in New York due to regulatory reasons.

Robinhood Crypto Wallet

The Robinhood Crypto Wallet is a software wallet that enables US investors to store their crypto. The wallet is non-custodial which means that you, as the investor, have full control over your private keys. The Robinhood Crypto Wallet supports all of the assets that are available on the Robinhood Crypto platform.

To setup your wallet, simply deposit any of the supported assets into your account. Once the deposit is complete, the funds will appear in your wallet. From there, you can send and receive crypto as well as view your transaction history.

Robinhood Crypto Wallet

Robinhood Crypto Fees

Robinhood are highly regarded for the fact that they offer zero fees to trade stocks, as well as digital assets. Further, the Robinhood Crypto platform charges no account fees, monthly subscription or yearly subscription fees like other popular brokerages in the United States.

Robinhood also charge zero trading fees to trade Crypto Options on their platform. That said, they do sell customer data to professional market makers, do there is still a hidden cost!

How to Trade Crypto Options on Robinhood

Robinhood Crypto is one of the only platforms in the United States that allows investors to buy and sell cryptocurrencies, and trade options. Crypto options allow investors to  speculate on the future price of a cryptocurrency without actually owning the underlying asset.

To trade options on Robinhood, simply go to the Options tab in the navigation menu and select the cryptocurrency that you want to trade options for. From there, you can buy or sell Calls and Puts for supported coins. You can watch the video below for an extended guide.

Robinhood Insurance

The application also has an insurance policy against crime, that protects your investment in case of theft or loss of the crypto in case of hacks. Even if you lose your crypto you are covered by the policy.

Robinhood Gamestop Controversy

On January 28, 2021, the Reddit group WallStreetBets caused a sudden increase in the stock prices of GameStop and other companies that were struggling financially. This was done in order to force the establishment investors to lose money. The phenomenon quickly caught mainstream media attention, with some calling it a "Robinhood rally" due to the popularity of the investment app among the group's members.

The rally has been credited with popularizing a new form of short selling known as a "short squeeze." A short squeeze occurs when investors who have sold shares "short" are forced to buy them back at a higher price in order to cover their losses. This can cause a stock's price to increase dramatically in a short period of time.

However, some people have criticized Robinhood for allegedly favoring establishment investors. On January 29, 2021, the company halted trading of GameStop and other stocks that were being heavily shorted. This caused a lot of anger among Robinhood users, who accused the company of protecting the interests of the establishment.

Final Thoughts on Robinhood Crypto

Overall, the Robinhood Crypto exchange is a solid platform for investors who want to buy any of their 15 supported cryptocurrencies. It is convenient and easy to use thanks to its simple user interface that allows users to swap between stock trading and crypto trading seamlessly. Another benefit is their industry-leading fees and spreads that are 0% for all assets on the platform.

One of the most significant downsides of the Robinhood Crypto platform is the fact they only support 15 coins. If you are looking for a more comprehensive multi-asset broker, we recommend an exchange like eToro which offers 80+ cryptos and over 8,000 different stocks, ETFs and other assets.

Karen Tren

Full-time writer and cryptocurrency newbie! Learning about NFTs, DeFi and GameFi with my research and writing for BuyBitcoinBank.

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