Posted April 15, 2022
By Matt Insley
Storing Crypto on Robinhood
For around three years, Robinhood Markets (HOOD) has made crypto trading available on their Robinhood app.
During last week’s Bitcoin 2022, Robinhood’s Chief Product Officer, Aparna Chennapragada, made the announcement that the apps crypto wallet, previously in Beta, has been activated for 2 million consumers, eliminating one of the apps biggest drawbacks (when comparing to other user-friendly crypto trading platforms.)
Outside of the governmental no-go zones of Nevada, New York, and Hawaii, all waitlisted clients can now move supported crypto in and out of Robinhood’s walled garden.
During the live Miami conference, Chennapragada added that Robinhood will be introducing support for bitcoin transactions on the Lightning Network, which allows for quick transactions and has been presented as a solution to the bitcoin scalability problem.
Robinhood Crypto Pros:
Aside from its user-friendly interface, one of the most obvious benefits to the Robinhood app is that it’s still one of the few brokers that allows you to trade cryptocurrencies for free, making it a unique offering among stock brokerages.
As for security, Robinhood boasts criminal insurance, covering a percentage of the assets in their storage systems against theft, and holds the majority of its users crypto assets in cold-storage, where it is cut off from internet access.
Aside from cryptocurrency, the platform allows the purchase of stocks, ETFs, and options, adding to its several advantages.
Robinhood Crypto Cons:
Just two short weeks ago, one of Robinhood’s biggest hurdles was the inability to move cryptocurrency in and out of their walled garden. Now that wallets have been made available to most of its consumers, the platform seems to have largely eliminated this concern.
However, a large disadvantage of Robinhood for crypto is its limited access to different cryptocurrencies. Pair that with the app's availability to U.S. based users only, and the app might feel very limited.
When compared to other crypto brokerages, Robinhood pales in comparison with only 11 cryptocurrency currently available on the app, 4 of which were added just three days ago.
On Tuesday, Robinhood launched four additional cryptocurrencies to its trading platform. Compound (COMP), Polygon (MATIC), Solana (SOL), and Shiba Ibu (SHIB), all of which are top 100 cryptocurrencies according to CoinMarketCap.
At present, Robinhood allows trading of the following cryptocurrencies:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Compound (COMP)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Polygon (MATIC)
- Shiba Inu (SHIB)
- Solana (SOL)
Robinhood Crypto also supports real-time market data for:
- Bitcoin Gold (BTG)
- Lisk (LSK)
- Monero (XMR)
- NEO (NEO)
- OmiseGO (OMG)
- Qtum (QTUM)
- Ripple (XRP)
- Stellar (XLM)
- Zcash (ZEC)
Robinhood notes on their website that the presence of real-time market data does not indicate future trading ability on their application.
Whether your personal choice is to take advantage of Robinhood’s easy-to-use crypto trading platform, or avoid it for more inclusive brokerage apps, sentiments surrounding the company’s recent announcements are high.
Robinhood's Chief Product Officer told the gathering at the Bitcoin 2022 conference in Miami today that bitcoin is currently the company's top recurring buy asset so far this year.
Have a safe and happy holiday weekend!
Editor, Daily Crypto Hunter