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Robinhood Crypto Review

Robinhood was founded in 2015 as a commission free stock trading platform, a revolutionary idea at the time. Ever since its launch in 2015 the company has become the sweetheart of the stock market, with millions of users that have invested billions in stocks through the app. The app has been so transformational that it has brought experienced as well as novice traders to the platform.

This review is mainly focused on the cryptocurrency trading platform created within the robinhood ecosystem of trading. This will help newcomers to make a better decision about their brokerage effectively.

Robinhood Crypto Review

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Robinhood Gamestop Controversy

Quite recently the Gamestop short squeeze saga brought quite a lot of bad press for the company, whose actions led to a lot of people losing money on their trades. However, even though it was surrounded by controversy it has still gained a lot of popularity. A very big reason for its astronomical popularity in the past years is because of the fact that it now allows cryptocurrencies to be traded on the app too. Since 2018 Robinhood customers can trade Bitcoin and Ethereum on the platform, along with other cryptocurrencies.

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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.

Below is a comparison of if you bought $100 of Bitcoin on Robinhood Crypto vs Coinbase, Gemini or Venmo.

Robinhood Crypto Fees

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Is Robinhood Crypto Safe?

Cryptocurrency trading has been a completely different department in the Robinhood app, it is also a completely different entity that takes care of the trades Robinhood Crypto owned and operated by Robinhood Markets LLC. Unlike its parent and sister companies Robinhood Crypto is not registered with the Financial Industry Regulatory Authority and does not come under the same legal framework. Thus from this perspective it is not one of the safest exchanges out there.

Another aspect of Robinhood’s work is that it holds the crypto in a mix of hot and cold wallets, which makes it safe from hacks and other attacks that might compromise customers' cryptocurrency. Only a certain amount is held in hot wallets to facilitate the day to day operations, otherwise most crypto is in hot wallets.

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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.

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User Interface

Robinhood is one of the most user friendly applications for stock trading on mobile platforms.  The key to Robinhood success has always been its simplicity and the ease of use it provides to its customers. Signing up on the app is very simple, however, because of KYC requirements you have to give your address as well as verification of your identity.

Robinhood Crypto Buy Bitcoin

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Robinhood Cryptocurrency List

The Robinhood Crypto platform offers a relatively comprehensive list of cryptocurrency. These include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Dogecoin (DOGE)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)
  • Bitcoin SV (BSV)
  • Shiba Inu (SHIB)
  • + Many Others

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Customer Service

The biggest investors on Robinhood are first time novice investors, who have not been trading for long. For such investors the platform is one of the best out there. It has a complete resource of learning infrastructure that can help them study effectively and become good crypto traders so that they don’t lose a lot of money.

There’s also much information given you at every point at the start, and moving on you can always use the search function within the app that lets you find solutions to problems and see answers to already asked questions. You can also email customer service representatives of the company that are there to help you in every step along the way.

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Final Verdict

Even though the crypto world has been criticizing Robinhood a lot due to its role in the Gamestop saga - it is still one of the most popular destinations for first time crypto buyers in the US.

For professional crypto buyers and holders it might not be the best option. However, if someone is transitioning from the stock market to the crypto market, it is the best option, as it offers the same familiarity to you. All in all good for first time buyers, not good for professional crypto traders or enthusiasts.  

Visit Robinhood Crypto
Posted 
Mar 18, 2022
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