Robinhood Announces Fee-Less Crypto Trading, Buzz Grows
Robinhood is an already popular mobile trading app that lets users trade stocks, with no trading fees, right from the comfort of their smartphone. Now, Robinhood wants in on the Bitcoin Boom.
That's because on January 25th, Robinhood announced they'd be taking their specialize fee-less dynamic and applying it to cryptocurrency buys and sells on their new digital assets platform, Robinhood crypto.
Wall Street, meet Coin Street, right? People are naturally already abuzz over the move, as it portends the increasing adoption and ease of access to cryptocurrency customers -- both veterans and newcomers alike.
Indeed, the wow factor for Robinhood will what other competitors -- like Coinbase, Gemini, Blockchain, and Square -- can't offer: a one-stop spot for all investment needs.
As the Robinhood team puts it, "you can now monitor and invest in cryptocurrencies, options, stocks, and ETFs, all on the same platform." That dynamic is going to be hugely attractive because it works in two powerful ways.
First, being a one-stop investment stop could attract droves of uninitiated, traditional mainstream investor types to Robinhood who want to partake in cryptocurrency investments with the ease of doing it along side stock investments and so forth.
Secondly, Robinhood has a chance to become the app of choice among increasingly affluent crypto investors who, as they watch their digital gains increase, diversify more and more into traditional assets like precious metals, mutual funds, and the like.
So the adoption potential could be huge. It depends on how fast Robinhood can play catch up, and if its trading platform is liked in the community, but the promise is certainly there.
Getting into the nitty gritty, Robinhood is aiming to tackle another factor that cryptocurrency traders hate, which is long deposit waits.
On the forthcoming platform, you'll be able to start trading instantly when you do bank transfers to your account for less than $1,000 USD.
So while the announcement is exciting for the practical trading implications that are at stake, it's also just another notch in cryptocurrencies' journey toward mainstream adoption.
Every platform announcement like this brings the cryptoverse one step closer to becoming ubiquitous in everyone's everyday lives, which is a win for the space in general.
Though Robinhood's announcement surely isn't great news for everyone. One would think that entrenched crypto exchange providers like Coinbase and Gemini would have become antsy over the news, in that they can't offer the same traditional investment experience as Robinhood can.
Maybe that won't matter at all. But don't be surprised if exchanges do respond in the coming days to boost their own profiles.
For example, Coinbase could retake the PR initiative by announcing new coin or token listings. That would certainly capture a few news cycles.
For now, Robinhood's the new kid on the block, and others will be left scrambling on how they can respond appropriately to this new competitor.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.