Robinhood is a buying and selling app and platform that was based in 2013 by two entrepreneurs named Vladimir Tenev and Baiju Bhatt. Their aim was to create a user-friendly app that will be free and accessible.
Right now, 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. Right now, customers can even commerce cryptocurrencies.
You is likely to 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 in your cash on Robinhood crypto than you’d on Kraken, and a couple of.35% greater than you’d on Coinbase.
When 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 necessary 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 main points!
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 clients, 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 in your crypto wallets. Remember the fact that state legislation might prohibit buying and selling some cash, so it is best 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 buyers so as to add cryptocurrencies to their portfolios.
We should always word right here that Robinhood Crypto holds customers’ cryptocurrency in chilly storage, which 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 evaluation.
Professional Tip:
Obtain as much as $1500 in free inventory per yr while you refer mates on Robinhood!
Can I Purchase Crypto on Robinhood?
When you’re asking if Robinhood is nice for crypto, then allow us to enable you out. We already confirmed you a picture illustrating that you simply’ll get extra crypto in your cash while you commerce via Robinhood than you’d with different crypto buying and selling platforms.
One of many options we like greatest about Robinhood Crypto is that it’s attainable to purchase fractional quantities of the cash you’re concerned about.
For instance, as of November 18, 2024, a single Bitcoin opened at $89,601.77. Most starting buyers don’t have that quantity to spend. Nonetheless, you’ll be able to nonetheless purchase Bitcoin on Robinhood. For instance, you might make investments $100 monthly 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’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 buyers 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. Which means you’ll must make your personal selections about which cash to purchase and the way a lot to spend. When 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?
Some of the necessary 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 guarantee that crypto buyers are protected.
As we acknowledged above, they maintain the vast majority of buyers’ cash in chilly storage, which is “totally 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 methods.” 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 group that conducts common opinions of the app’s and web site’s code and infrastructure. They’ve additionally acknowledged that they pay for normal third-party testing.
These items are all good. We do wish to level out language that could be of concern to some buyers, particularly that “some” cash are held in chilly storage and “a portion of the belongings” are protected by insurance coverage. Robinhood hasn’t offered some other data, so that you’ll must resolve for those who really feel that their safety is sufficient.
On a associated word, Robinhood has advisable some safety measures that customers can take to guard themselves. These embrace the next:
Set a safe password that incorporates a minimum of 10 characters, ideally a random mixture of higher and lowercase letters, numbers, and symbols. It ought to be a singular 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 below Safety and toggle the button from Disabled to Enabled.
Evaluate units which have accessed your account. When you have gotten rid of a laptop computer, pill, or cellphone, ensure that to take away it out of your account.
Arrange a PIN or password for adjustments to your SIM card. Typically, hackers might try and swap the knowledge in your cellphone for a brand new SIM card, however for those who arrange a PIN, they gained’t be capable to try this.
Contemplate transferring your cash from Robinhood to a chilly pockets of your personal.
As a degree of comparability, Coinbase provides state-of-the-art encryption and a multi-level withdrawal system to guard buyers’ cryptocurrency holdings and crypto belongings.
Total, we predict that Robinhood crypto safety measures are sufficient to guard most buyers in the event that they take the extra advisable 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 hold that in thoughts.
Professional Tip:
Obtain as much as $1500 in free inventory per yr while you refer mates on Robinhood!
Shopping for Crypto on Robinhood
You’re most likely 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 a minimum of 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. Take into accout it could take as much as per week to get your account authorised.
Fund your account. You’ll be requested to supply and ensure your checking account quantity. As a way to make trades on Robinhood, together with cryptocurrency, you’ll want a minimum of $1 in your account.
Select a cryptocurrency to purchase. You’ll be able to select any one of many 19 cash supplied by Robinhood. Take into accout there’s a minimal of 1 DOGE if you wish to put money into Dogecoin. All different cash enable for fractional purchases.
Select the quantity you wish to purchase. You’ll be able to specify any quantity of a greenback or extra.
Specify whether or not you wish to make a one-time commerce or a recurring one. Some buyers 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 could be that the button would say “Submit Promote”.
Is Robinhood the Proper Alternative for Your Crypto Journey?
Must you use Robinhood to purchase crypto?
We expect Robinhood is an effective selection for buyers who wish 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 equivalent to Coinbase, however for those who’re already utilizing Robinhood, then it’s simple so as to add crypto to your holdings.
Listed here are a number of execs of utilizing Robinhood for crypto investing:
Set-up is simple 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, nevertheless it doesn’t cost commissions to buyers.
Robinhood’s cell app is nicely reviewed and accessible.
You should buy fractional shares of most crypto cash.
Robinhood has insurance coverage and safety measures in place to forestall buyers’ crypto holdings.
As we famous above, cryptocurrency has extra volatility and better threat than another investments. You need 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 assist with any questions.
Professional Tip:
Obtain as much as $1500 in free inventory per yr while you refer mates on Robinhood!
Conclusion
Is Robinhood good for crypto? We expect there are some execs which will attraction to many buyers, significantly these eager 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 cell app.
Some potential cons to contemplate embrace {that a} Robinhood account solely makes 19 cash obtainable 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 rookies. Intermediate or superior crypto buyers might desire a platform with extra superior options and extra cash obtainable.
Robinhood has put plenty of 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 buyers’ 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. When you resolve to improve to Robinhood Gold, you’ll pay $5 monthly.
Sure, Bitcoin was one of many first cash on Robinhood and continues to be that can be purchased. There are 18 different cash obtainable, 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% protected from breaches. That mentioned, Robinhood shops most of buyers’ crypto holdings in chilly storage, which implies they’re protected from hacking. As a person, it is best to create a powerful password, allow 2FA, and hold monitor of which units entry your account.
