To invest or trade in cryptocurrencies, you must first open an account on one of the many online exchanges. Robinhood is just one of them, and a popular one. The US-based platform known as Stock Trading App introduced the concept of commission-free trading before most others even thought of it. Later, as the crypto boom entered the world, it also extended its services to those interested in the emerging industry. Robinhood is preferred by beginners because of its user-friendly interface.
What other factors determine Robinhood’s eligibility? And what are its drawbacks, if any?
1. Unlike many other similar platforms, Robinhood offers commission-free trading, this basically means that the investor does not need to pay any fees to conduct the transaction. For example, some of the top crypto trading apps charge trading fees of up to 1.5 percent for most transactions. Suppose you want to buy bitcoins worth Rs 1,000, then you have to pay Rs 15 as commission. However, Robinhood charges a variable order flow fee.
2. In terms of security, it follows a 2-step verification process. Robinhood crypto platform offers cold storage facility as well as insurance against breaches.
3. Robinhood is an intuitive application. This means that the UI is not cumbersome for the user. The interface is friendly and shows the most common functions in one menu, rather than burying them in multiple menus with rigid hierarchies.
4. The app supports the purchase of cryptocurrencies, stocks, ETFs and options. So this is an app, there are many advantages.
1. The biggest drawback of using the Robinhood app for crypto trading is that you can only buy, hold and sell cryptocurrencies. You cannot send your bitcoins to another cryptocurrency wallet, or spend it on real-world purchases or receive it from other people.
2. Robinhood supports trading of a limited number of cryptocurrencies. Currently, the number stands at seven, which includes chart toppers such as Bitcoin, Ethereum, and Dogecoin. If you decide to diversify your crypto portfolio, you only have seven options.
3. Also, the app is only available for US-based users.