Saturday, 17 February, 2018

Stock app Robinhood is adding no-fee bitcoin trading

Robinhood will allow users to trade digital currencies for free Robinhood OKs No-Fee Bitcoin Trades But Banks, SEC Crack Down
Nellie Chapman | 27 January, 2018, 10:31

Customers will also be able to track 16 other cryptocurrencies including Monero, litecoin, and Dash.

Robinhood, the millennial- and smartphone-friendly app for trading stocks, will allow customers in California, Massachusetts, Missouri, Montana and New Hampshire to trade cryptocurrencies for no commission fee starting in February. Most importantly, they will be able to purchase cryptocurrencies without incurring commission charges.

If you're investing in bitcoin or ethereum and anxious about the high transaction fees charged by cryptocurrency exchanges like Coinbase, there is good news on the way!

Stock trading mobile app provider Robinhood is jumping on the crypto-trading bandwagon. Subsequently, it trawls through multiple exchanges and trading venues to find the lowest price that is closest to the price that had been offered to the user.

"Trading in cryptocurrencies comes with significant risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks", the website states.

Robinhood makes money by selling premium accounts at a price of $6 dollars per months.

The company made this announcement through a blog post yesterday.

Co-founder Vladimir Tenev told TechCrunch that the company plans to run this service on a break-even basis, and doesn't expect to turn a profit for the foreseeable future. Bhatt sees cryptocurrency bringing that number to new heights.

Robinhood will have no investment minimums or maximums and no withdrawal limits for cryptocurrency trading.

Having raised a total of $176 million in venture capital, this new crypto functionality is in line with the company's push to add more products to its offering.

Robinhood is a start-up trading platform that has gotten a lot of attention from investors and the financial community. Robinhood's simplified interface for trading could help circumvent the cumbersome process of consulting multiple exchanges to invest in a particular coin. Its decision to add cryptocurrency is somewhat surprising, however, since as recently as last October the company downplayed the popularity of digital assets compared to traditional stocks.

Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. As of the date this article was written, the author owns small amounts of bitcoin.