SPY -0.80%
BND -1.19%
QQQ -1.08%
DIA -1.03%
VNQ -1.76%
GLD -2.09%
BTC -2.10%
AAPL -1.13%
GOOGL -2.79%
NVDA -2.21%
MSFT -0.45%
META +5.35%
AMZN -2.39%
TSLA -0.17%
UBER -0.92%
GS -2.82%
BAC -0.25%
JPM -0.41%
BRK.A +0.47%
COST -0.16%
XOM +2.35%
BABA -4.65%
WMT -2.38%
SPCX -4.47%
DIS +1.67%
F -3.59%
Live a richer life.
  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Home
Investing
Investing Basics
Flaming arrow shot into a target Dina van Wyk / Shutterstock

The Robinhood Crypto App Explained

Shannon Quinn
Jun 18, 2019
Share
Email
Facebook
X
LinkedIn
Reddit
Follow us
Newsletter
Instagram
Facebook
Tiktok
X
Youtube

Follow us on Google for more Moneywise news

Add us on Google

The investing app Robinhood has gone from popular to red hot with its announcement that it will add 16 cryptocurrencies to its trading platform, including bitcoin, Ethereum, XRP and Litecoin.

Some 400,000 people stampeded to sign up for early access during the first 24 hours after the news broke, and the numbers kept climbing from there.

Advertisement

Why the big deal? Three reasons.

Invest smarter with our free newsletter.

By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.

1. It's free — times 2

Not only is Robinhood a free app, but it will allow users to trade digital currencies for free, with no fees or commissions.

The big online brokers charge $6.95 per trade. And one of the most popular cryptocurrency trading platforms, Bittrex, charges a 0.25% commission on every trade, plus there are fees for withdrawals.

Robinhood has already made trading stocks free and easy, no matter how much you can afford to invest. That has made it wildly popular with millennials.

The company has over 2 million users and counting, and was averaging 140,000 new accounts per month — before the big spike in signups from its crypto news.

Must Read

2. It's uncomplicated

Right now, the only way to purchase second-tier digital currencies such as Ripple's XRP, Dogecoin and Monero is to jump through technical hoops that most users are not ready to handle.

Advertisement

They must purchase a top crypto like bitcoin or Ethereum on Coinbase first, then transfer to another exchange. This forces investors to pay fees totaling anywhere from $40 on up to hundreds of dollars.

Close up of a bolt cutter cutting a padlock.
Phil McDonald / Shutterstock
Robinhood breaks down barriers to investing in second-tier digital currencies.

More direct trading of these other currencies on Robinhood will mean investors will see massive savings, and enjoy the benefits of an easy-to-use platform.

Robinhood also is prepared to welcome new users who have been trying to purchase through Coinbase, yet cannot make it past the verification process due to poor customer support and website downtimes.

“Uptime and availability is something we take incredibly seriously," Baiju Bhatt, the co-CEO of Robinhood, told Bloomberg.

3. It's a plus for the crypto market

New investors have been super eager to buy in-demand cryptocurrencies like XRP, but they have been held back by the technical barriers to entry.

Advertisement

The ability to purchase and trade the coins directly on Robinhood could produce a boom in trade volumes in February, which could lead to an increase in prices.

New york, USA - November 24, 2017: Price of bitcoins on smartphone screen. Exchanging bitcoins to dollar diagram
PixieMe / Shutterstock
Robinhood's new digital currency trading could bump up prices.

The acceptance of these currencies on what has been a more traditional stock-trading platform is fresh evidence that cryptocurrencies are not a passing fad but are here to stay.

Robinhood's cryptocurrency trading will be available to customers in just five states at first: California, Massachusetts, Missouri, Montana and New Hampshire. To get in on the action, you must start by downloading the app and registering.

You May Also Like

Share this:
Shannon Quinn Contributor

Shannon Quinn was formerly a freelance contributor to Moneywise. Quinn is an entrepreneur and writer from the Philadelphia area.

more from Shannon Quinn
Oprah Winfrey

Life • Jan 04

Oprah Winfrey's net worth, plus 8 more financial facts about her you may not know

Coffee mug with 'Hustle' on it

Employment • Dec 29

Looking for a boost to your salary? Quit your job

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.