Robinhood is a buying and selling app and platform that was based in 2013 by two entrepreneurs named Vladimir Tenev and Baiju Bhatt. Their objective was to create a user-friendly app that might be free and accessible.
As we speak, Robinhood is without doubt one of the most-used monetary apps on this planet. At first, the app was for buying and selling shares and ETFs. As we speak, customers may also commerce cryptocurrencies.
You is perhaps 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 available on the market for crypto property. 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 possibly can see, you’d get 2.41% extra crypto on your cash on Robinhood crypto than you’d on Kraken, and a pair of.35% greater than you’d on Coinbase.
In case you’re contemplating buying and selling crypto on Robinhood, we’ve received the solutions you want. Earlier than you begin shopping for cryptocurrency on Robinhood, it’s essential to know concerning the app’s options, safety, and person expertise buying crypto property. We’ll cowl all that and extra, so maintain 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 providers 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 on your crypto wallets. Take into account that state regulation could prohibit buying and selling some cash, so it’s best to all the time examine 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 implies 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, that means it’s not related 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 once you refer mates on Robinhood!
Can I Purchase Crypto on Robinhood?
In case you’re asking if Robinhood is sweet for crypto, then allow us to aid you out. We already confirmed you a picture illustrating that you simply’ll get extra crypto on your cash once 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 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 may make investments $100 monthly to extend your Bitcoin holdings over time.
Listed here are a few of 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 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 shouldn’t be a cryptocurrency advice service. Which means you’ll have to make your individual selections about which cash to purchase and the way a lot to spend. In case you see folks sharing crypto efficiency charts for Robinhood, these are exhibiting private outcomes and never general or statistical outcomes.
Is Robinhood Protected for Crypto?
One of the essential issues earlier than utilizing any digital buying and selling platform is security. Is Robinhood crypto secure for the acquisition of crypto property?
Listed here are the measures that Robinhood has put in place to be sure that crypto buyers are protected.
As we said above, they maintain the vast majority of buyers’ cash in chilly storage, which is “solely disconnected from the web.” That implies that even when Robinhood had been to get hacked, hackers wouldn’t have the ability 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 property 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 evaluations of the app’s and web site’s code and infrastructure. They’ve additionally said 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 property” are protected by insurance coverage. Robinhood hasn’t offered every other data, so that you’ll have to resolve 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 embody the next:
Set a safe password that comprises a minimum of 10 characters, ideally a random mixture of higher and lowercase letters, numbers, and symbols. It must be a singular password that you simply don’t use for anything.
Activate two-factor authentication, often known as 2FA. All it’s worthwhile to do is search for 2FA below Safety and toggle the button from Disabled to Enabled.
Evaluate units which have accessed your account. You probably have gotten rid of a laptop computer, pill, or telephone, make sure that to take away it out of your account.
Arrange a PIN or password for modifications to your SIM card. Typically, hackers could try and swap the knowledge in your telephone for a brand new SIM card, however when you arrange a PIN, they gained’t have the ability to do this.
Contemplate 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.
General, we expect 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 maintain that in thoughts.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer mates on Robinhood!
Shopping for Crypto on Robinhood
You’re in all probability questioning by now the right way 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 previous, have a sound Social Safety Quantity, and be a authorized resident of the US, together with the District of Columbia, Puerto Rico, or the US Virgin Islands. Have in mind it might take as much as per week to get your account accredited.
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 possibly can select any one of many 19 cash supplied by Robinhood. Have in mind there’s a minimal of 1 DOGE if you wish to spend money on Dogecoin. All different cash enable for fractional purchases.
Select the quantity you wish to purchase. You possibly can 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 extra 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’ll use this very same course of to promote cryptocurrency on Robinhood. The one distinction can 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 predict Robinhood is an effective alternative 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 corresponding to Coinbase, however when you’re already utilizing Robinhood, then it’s simple so as to add crypto to your holdings.
Listed here are a couple of professionals of utilizing Robinhood for crypto investing:
Set-up is simple and intuitive, and your a part of it may be accomplished in just some minutes.
Crypto makes its cash from quantity rebates from buying and selling venues, nevertheless it doesn’t cost commissions to buyers.
Robinhood’s cellular app is properly reviewed and accessible.
You should buy fractional shares of most crypto cash.
Robinhood has insurance coverage and safety measures in place to stop buyers’ crypto holdings.
As we famous above, cryptocurrency has extra volatility and better threat than another investments. It’s best to solely spend as a lot shopping for cryptocurrency as you possibly can afford to lose and all the time attain out to Robinhood help with any questions.
Professional Tip:
Obtain as much as $1500 in free inventory per yr once you refer mates on Robinhood!
Conclusion
Is Robinhood good for crypto? We predict there are some professionals that will enchantment to many buyers, significantly these eager to get their ft moist in crypto investing. These embody fee free buying and selling, the power to purchase fractional shares, and the accessibility of Robinhood’s cellular app.
Some potential cons to think about embody {that a} Robinhood account solely makes 19 cash accessible 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 spend money on.
The underside line is that we like Robinhood for crypto, particularly for novices. Intermediate or superior crypto buyers could want a platform with extra superior options and extra cash accessible.
Robinhood has put various 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 received 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. In case you resolve to improve to Robinhood Gold, you’ll pay $5 monthly.
Sure, Bitcoin was one of many first cash on Robinhood and remains to be that can be purchased. There are 18 different cash accessible, 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 person, it’s best to create a robust password, allow 2FA, and maintain observe of which units entry your account.
