Despite the free fall of cryptocurrencies in terms of market valuation and trading prices in the last couple of weeks, the wonder coins are becoming prominent by the day. The latest firm to buy-in into the viability of cryptos is Robinhood.
Robinhood started off with an app for stock trading that took Wall Street by storm. The business strategy offered by the firm was to eliminate transaction fees on stock trading. It has succeeded in signing up 2million users to its platform to date. Robinhood is valued presently above 1.3billion USD.
Trading on cryptos will be supported on Robinhood Crypto, the new vehicle recently unveiled to the public. The firm made its debut on Apple iStore in December 2014,: and users of Google Play Store can also access it presently.
The company has its sights on the buzzing millennials who are drawn to all things tech with little patience for layers of bureaucracy. It means that the burgeoning class of 20 going 30 can have more options to play with as the crypto field expands.
Initial Launch Target
Robinhood has launched already in five American states this month, and the coverage will expand substantially over the next few months. Users of the app will be able to trade 16 currencies and this will accommodate more entrants with time.
The currencies traded for now are:
- Bitcoin Cash
- Ethereum Classic
- Bitcoin Gold
There are no clear criteria for the cryptocurrencies listed for trading at this initial stage, but a look shows that it contains most of the common top 10 picks on the market valuation schedule for cryptos.\
What Robinhood Will Do Differently
When Robinhood started out with its transaction free stock trades, it eliminated the common $10 fee charged per transaction by most stock brokerage firms. This was the magic wand that drew early users to its platform.
By developing a waiting list for its initial stock trade innovation, there was a buzz generated about Robinhood online and across the blogosphere. This is sure to play out with the crypto version of transaction fees-free trades.
Now that Robinhood has taken on crypto trades, it is definitely going head-to-head with crypto exchanges that control a huge chunk of the market. It will be breaking the mould of high fees, frustrating downtimes, and unexplained outages. The early lead from the firm shows that it is ready to sign up clients in their numbers, and process heavy transaction volumes.
Millennials Can Trade Cryptos like Pros
What marks out the pro when it comes to stock trades and financial derivatives is knowing when to place the buy decisions and when to call it off. This is one practical step that many people can leverage on with the Robin Hood trading app.
For stock trades, there is the margin trading option that users can access using Robinhood Gold, which operates as a premium service. It provides guides to users that will minimize losses, and give leads on how to make quick investment decisions for profit.
Will Robinhood Make money?
There is no doubt that Robinhood is able to make money from its app as users have to pay a fee for premium access, deposits, and earnings made on the platform. In this way, users are not discouraged knowing that they only have to pay as they activate investments and as earnings materialize.
For crypto trades, Robinhood will provide access to existing crypto platforms as users make their investment decisions. Users will also receive leads as opportunities for profit opens up for each of the crypto traded.
In terms of security, Robinhood Crypto has opted for offline storage of virtual currencies so that hackers are kept at bay.
How You Can Make Money
As a savvy investor, you can use Robinhood to your advantage as follows:
- You cut off recurring transaction charges
- You only make payment for deposits /withdrawal of earnings
- You have the advantage of technology to make quick decisions to avoid losses or increase profits.