Commission-free trading and real-time market data on cryptocurrencies, but no support for ICOs
Robinhood Crypto – How to Buy and Sell Crypto on Robinhood
If you are interested in buying crypto, Robinhood offers commission-free trading on certain coins. It also provides real-time market data on additional coins. However, it does not support ICOs.
Robinhood is a free stock brokerage that allows customers to trade stocks and cryptocurrencies. Its offerings are limited, but it has some strengths that set it apart from traditional brokers.
Free crypto trades
The Robinhood crypto feature allows users to buy and sell cryptocurrencies without paying commissions. It offers real-time market data for 16 coins, including Bitcoin, Ethereum, Litecoin, Ripple, Zcash, OmiseGo, Dash, and Dogecoin. It also allows users to place orders in fractional amounts. However, it is important to note that you can only trade certain currencies on Robinhood if you live in the United States and have verified your identity and added two-factor authentication.
Adding crypto trading to its platform may be a way for Robinhood to attract new customers and boost its bottom line. While the company may not be a cryptocurrency specialist like Coinbase, it’s built its business on being an advocate for small retail investors and crypto, born out of an ethos of decentralization and superseding big financial institutions, fits into that narrative.
Easy to use
Robinhood Crypto offers easy and free access to a range of popular cryptocurrencies, including Bitcoin and Dogecoin. It uses industry best practices to store and secure users’ coins, which are kept in a combination of cold and hot wallets. The company also has a crime insurance policy that covers a portion of its users’ assets. To initiate a cryptocurrency transfer, you must verify your identity and set up two-factor authentication.
Every blockchain transaction has a unique identifier, otherwise known as a TxID, which can be viewed by clicking a link on Robinhood’s platform or using a third-party block explorer. In addition, Robinhood estimates and includes a network fee in the total sent amount before you complete the transfer. In the future, Robinhood will enable you to deposit your crypto holdings in a separate Robinhood wallet with the option of transferring them into independent hardware or cold storage wallets. This will give you the ability to take control of your private keys and hold them offline.
Accessible to everyone
While Robinhood isn’t a crypto specialist like Coinbase, it has the advantage of being a one-stop investment platform that is easy to use on a mobile device. It also focuses on its branding as an advocate for the small retail investor, and crypto, which was founded on an ethos of decentralization and replacing big financial institutions, fits nicely into this narrative.
To buy cryptocurrencies on Robinhood, users must verify their identity and add two-factor authentication to their accounts. Once their accounts are verified, they can begin transferring coins. Each transfer has a unique transaction identifier known as a TxID. The TxID can be searched using a third-party blockchain explorer, which displays the status of each transaction on a live record of the coin’s blockchain.
Unlike traditional fiat currencies, cryptocurrency transfers cannot be reversed, so security is crucial. Robinhood recommends enabling two-factor authentication and using password managers to secure your account. It also recommends following security best practices.
If you’re looking for a free and easy-to-use trading platform to buy crypto, you should consider Robinhood. It offers a variety of assets and has partnered with the National Association of Securities Dealers Automated Quotations to offer real-time prices and market data. Its zero-commission policy and low minimum account balance make it ideal for beginners.
However, there are a few fees that you should know about. Robinhood makes money on crypto trades by building in a spread markup. This is a big deal because it affects your pricing information. You may not see the exact bid-ask spread, which could affect your decision to buy or sell.
In addition, Robinhood charges a fee for withdrawing to a cryptocurrency wallet. This fee depends on the amount of the withdrawal. It’s also important to note that every crypto transaction includes a network fee, which is collected by the cryptocurrency’s network and may vary in size. Robinhood estimates these fees and passes them on to you before completing the transaction.