You’ve heard of Robinhood, right? The company that has created a mobile trading app for both IOS and Android, an app which has gained a broad base of users who use the app to trade stocks for free on a regular basis? Well, if you haven’t before, now you know. Robinhood is preferred by many due to its fee-free nature, allowing many to keep more of their gains and add minimize their losses.
The company invites users to join their platform by stating on their website, “Free stock trading. Stop paying up to $10 for every trade. Robinhood is available now! Signing up takes less than 4 minutes.”
Well, guess what? They’re now expanding their platform to introduce the world of cryptos and, yes, they are going to be doing it fee-free. This is significant news for those that frequently participate in trading the cryptoworld, buying and selling Bitcoin and other cryptocurrencies in centralized exchanges like Coinbase, can have users experiencing high fees that range from a varying 1-10% or more
This is certainly a big concern for those in the crypto sector because crypto traders want to make sure that they make every ether and bitcoin count to maximize their gains.
The aspect of Fees & more
The aspect of fees can be high in many aspects of trading and even sending cryptocurrencies across to different accounts.
So, a company like Robinhood, who is jumping into the crypto space and making all sorts of trading more accessible to the average consumer is sure to gain from an action like this, especially in general bull markets like this one.
They will be deploying these new functionalities to trade Bitcoin and Ether onto their mobile platforms within the upcoming month. This move will undoubtedly help to bring in more users to use their present platform as well as their new functionalities.
To make sure that they don’t ruin operations, they will be deploying the new functionalities to customers in specific states in the United States.
They are making sure to tackle two pain points experienced by many traders, the time for processing and the fees associated with each transaction. They’ll be providing quick processing on transactions to make things simple and fast.
Is it a Risky move?
For Robinhood, an experienced industry expert in the field of providing trading for free, this should not be a risky move. They’ve researched the stock markets to understand how they can offer a unique advantage to the marketplace, thus providing a superior service to customers.
The company already collects revenues through several of its services, primarily by offering a service called, Robin HoodGold, which allow for after-hours trading and also by collecting interest on the cash and securities that are placed in the Robinhood accounts, much like banks collect interest on cash deposits.
The firm has been on a roll with their latest moves, one of the interesting features that they have added as of late has been that of options trading, it has also added a web functionalities, in addition to its mobile ones.
In regards to storage of cryptocurrency on their platform, Robinhood will be using the services of another provider, and it seems that the company will be letting users decide which currencies they want to add to the platform. The company might choose which additional cryptocurrencies need to be on the platform by popularity.