To invest or trade in cryptocurrencies, you would first need to open an account on any of the numerous online exchanges. Robinhood is just one of them, and a popular one. The US-based platform is best known as the stock trading app that helped started the concept of commission-free trading years before most others thought of it. In the future, as the crypto boom hit the world, it also offered its services to those interested in emerging industries. Robinhood is liked by beginners because of its user-friendly interface.
What are the other factors that define Robinhood's worthiness? Are there any deficiencies that need fixed?
Robinhood offers a commission-free trading unlike many other similar platforms, this means that the investor is not required to pay any fee for making transactions. For example, some top crypto trading apps charge up to 1.5 percent trading fee for most transactions. If you want to buy $500 worth of Bitcoin, then you will have to pay commission Rs15. Robinhood charges a variable order flow fee.
In terms of security it follows a 2 step verification process. Robinhood provides a cold storage facility as well as insurance against crypto platform breaches.
Robinhood is an intuitive application. What it means is that the UI is not cumbersome to the user. The interface is simple and shows the most rigid functions in one menu, rather than bury them in common menus with easy hierarchy.
The app supports purchases of virtual currencies, stocks, ETFs, and options. Also it's one app, multiple benefits.
The biggest drawback of using Robinhood app for crypto trading is that you can buy, hold and sell only cryptocurrencies. You cannot send your Bitcoin to another cryptocurrency wallet, or can't transfer it to other people for purchases or spend it with real money.
Robinhood supports trading of a limited number of cryptocurrency. At present, the number is seven, including chart toppers like Bitcoin, Ethereum and Dogecoin. What are the options available to diversify your crypto portfolio?
Also the app is available only to US based users.