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.
- Commission-free trading for over 15 cryptocurrencies and thousands of stocks.
- Licensed broker in the United States by FinCEN and FINRA.
- In-built Robinhood Crypto Wallet for full user self custody and permissionless trading.
Robinhood Crypto Features
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.
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:
- Avalanche (AVAX)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Cardano (ADA)
- Chainlink (LINK)
- Compound (COMP)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Polygon (MATIC)
- Shiba Inu (SHIB)
- Solana (SOL)
- Stellar Lumens (XLM)
- Uniswap (UNI)
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 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.
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
The Robinhood Gamestop Controversy refers to a situation that occurred in late January 2021, when a group of retail investors coordinated through the Reddit forum r/wallstreetbets to buy shares of GameStop, a struggling brick-and-mortar video game retailer, in an attempt to squeeze out short sellers. Short selling is a strategy in which an investor borrows shares of a stock, sells them, and then buys them back at a later date in the hopes of repaying the borrowed shares at a lower price, pocketing the difference as profit.
As the price of GameStop's stock soared due to the influx of buyers, the short sellers suffered significant losses. In response, the online brokerage firm Robinhood, which is popular with retail investors, limited the ability of its users to buy GameStop and other heavily shorted stocks, leading to accusations that the company was protecting the interests of the hedge funds that were losing money on the short bets.
The controversy sparked widespread outrage and drew attention to the broader issue of retail investors versus institutional investors. It also led to a number of investigations and hearings on Capitol Hill, and raised questions about the role of online brokerage firms in regulating the markets.
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.