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.
In the present day, Robinhood is among the most-used monetary apps on the planet. At first, the app was for buying and selling shares and ETFs. In the present day, customers may also 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 in the marketplace 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 possibly can see, you’d get 2.41% extra crypto in your cash on Robinhood crypto than you’ll on Kraken, and a couple of.35% greater than you’ll on Coinbase.
If you happen to’re contemplating buying and selling crypto on Robinhood, we’ve obtained the solutions you want. Earlier than you begin shopping for cryptocurrency on Robinhood, it’s vital to know in regards to 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 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. Needless to say state regulation might prohibit buying and selling some cash, so it is best to at all times verify to make certain of the foundations. 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 signifies that it’s simple for starting crypto buyers so as to add cryptocurrencies to their portfolios.
We must always observe 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 in regards to the security and safety measures Robinhood makes use of later on this overview.
Professional Tip:
Obtain as much as $1500 in free inventory per 12 months whenever you refer mates on Robinhood!
Can I Purchase Crypto on Robinhood?
If you happen to’re asking if Robinhood is sweet for crypto, then allow us to assist you to out. We already confirmed you a picture illustrating that you just’ll get extra crypto in your cash whenever you commerce by Robinhood than you’ll with different crypto buying and selling platforms.
One of many options we like finest about Robinhood Crypto is that it’s attainable to purchase fractional quantities of the cash you’re fascinated 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. Nevertheless, you possibly can nonetheless purchase Bitcoin on Robinhood. For instance, you can make investments $100 monthly to extend your Bitcoin holdings over time.
Listed below are a number of the options of Robinhood Crypto that we like finest.
- 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 totally different cryptocurrencies, greater than many different on-line brokers.
- Robinhood is regulated by FINRA and registered with FinSEC.
- You possibly can 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 suggestion service. Meaning you’ll have to make your individual selections about which cash to purchase and the way a lot to spend. If you happen to 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 crucial vital concerns earlier than utilizing any digital buying and selling platform is security. Is Robinhood crypto secure for the acquisition of crypto property?
Listed below are the measures that Robinhood has put in place to guarantee that crypto buyers are protected.
- As we said above, they maintain nearly all of buyers’ cash in chilly storage, which is “solely disconnected from the web.” That signifies that even when Robinhood have 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 crew that conducts common critiques of the app’s and web site’s code and infrastructure. They’ve additionally said 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 buyers, particularly that “some” cash are held in chilly storage and “a portion of the property” are protected by insurance coverage. Robinhood hasn’t supplied some other data, so that you’ll have to determine when you really feel that their safety is satisfactory.
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 comprises at the very least 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 you want to do is search for 2FA beneath Safety and toggle the button from Disabled to Enabled.
- Evaluate units which have accessed your account. If in case you have gotten rid of a laptop computer, pill, or telephone, ensure to take away it out of your account.
- Arrange a PIN or password for adjustments to your SIM card. Generally, hackers might try and swap the data in your telephone for a brand new SIM card, however when you arrange a PIN, they gained’t be capable of try this.
- Think about transferring your cash from Robinhood to a chilly pockets of your individual.
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 property.
Total, we predict that Robinhood crypto safety measures are satisfactory to guard most buyers 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 look forward to finding with conventional shares or ETFs, so preserve that in thoughts.
Professional Tip:
Obtain as much as $1500 in free inventory per 12 months whenever you refer mates 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 will help you increase your crypto wallets and crypto trades.
- Open a Robinhood account. To take action, you’ll should be at the very least 18 years previous, 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. Remember it could take as much as every week to get your account authorized.
- Fund your account. You’ll be requested to supply and ensure your checking account quantity. With the intention to make trades on Robinhood, together with cryptocurrency, you’ll want at the very least $1 in your account.
- Select a cryptocurrency to purchase. You possibly can select any one of many 19 cash supplied by Robinhood. Remember 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 possibly can 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 buyers 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?
Must you use Robinhood to purchase crypto?
We expect Robinhood is an efficient selection for buyers 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 equivalent to Coinbase, however when you’re already utilizing Robinhood, then it’s simple so as to add crypto to your holdings.
Listed below are just a few execs of utilizing Robinhood for crypto investing:
- Set-up is straightforward 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, but it surely doesn’t cost commissions to buyers.
- Robinhood’s cellular app is effectively 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 danger than another investments. It is best to solely spend as a lot shopping for cryptocurrency as you possibly can 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 12 months whenever you refer mates on Robinhood!
Conclusion
Is Robinhood good for crypto? We expect there are some execs that will enchantment to many buyers, notably these desirous to get their ft moist in crypto investing. These embrace fee free buying and selling, the power to purchase fractional shares, and the accessibility of Robinhood’s cellular app.
Some potential cons to contemplate 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 have to 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 freshmen. Intermediate or superior crypto buyers 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 getting, promoting, or transferring their crypto holdings. They’ve additionally obtained insurance coverage to guard a few of buyers’ holdings, and most holdings are saved 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. If you happen to determine to improve to Robinhood Gold, you’ll pay $5 monthly.
Sure, Bitcoin was one of many first cash on Robinhood and continues to be in the stores. 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 stated, Robinhood shops most of buyers’ crypto holdings in chilly storage, which suggests they’re secure from hacking. As a consumer, it is best to create a powerful password, allow 2FA, and preserve monitor of which units entry your account.
