Posts Tagged ‘Robinhood’

Bitcoin is Coming to Robinhood!!!

Posted on: January 26th, 2018 by jms 1 Comment



If you haven’t already heard, you might want to pay attention to this…


Robinhood recently announced that they will be offering the option to trade Bitcoin and Ethereum in February, with other cryptocurrencies coming soon!


Robinhood is a stock trading app that, in many ways, has really disrupted the brokerage trading market with it’s free options trading platform. With Robinhood you can buy and sell stocks on a regular basis without incurring any brokerage fees. Now, Robinhood has set out to disrupt another market, the crypto-market, by offering the option to trade cryptocurrencies without any transaction fees.


This is big news and here’s why…


A volatile market is arguably one of the best markets for making quick returns on your investment. Using technical analysis, it is possible to find trends that will show you the best buy and sell points for a given asset. I can’t think of a more volatile market with higher price swings than the cryptocurrency market. But when it comes to day trading cryptocurrencies, the problem for me has been the exorbitant fees tied to transactions using a trusted exchanges like Coinbase.


There is a great opportunity to make decent money day trading cryptocurrencies, even for average or passive investors. But I’ve done the math and, for me, the risk is too high when you account for the transaction fees.  Of course it is still possible to make money on a day to day basis when price swings are a few hundred at any given moment. However, the fees alone can also add up to a few hundred when you’re dealing with a worthwhile trade that can earn you a decent return, at least on Coinbase. I haven’t tried using other exchanges mostly because I place more trust the security of Coinbase.


And now enters Robinhood with their free trading options, which they want to introduce to the cryptocurrencies world.  This will allow us passive investors to play around with cryptocurrency day trading without having to worry about those nasty fees that always eat away at any potential gains. Robinhood is effectively reducing the risk of cryptocurrency trading in a big way for anyone who is paying attention to the market lately. And best of all, Robinhood is very secure and FDIC insured, although I’m not sure if cryptocurrencies fall under their FDIC protection.  I’ll also point out that one of the venture capital investors in Robinhood happens to be Marc Andreessen, who is also invested in Coinbase.


Unfortunately, Robinhood will only be introducing cryptocurrency trading to 5 states for now, California, Massachusetts, Missouri, Montana, and New Hampshire. I assume this is due to state-by-state regulations, but they do promise that “Robinhood Crypto”, as they call it, will be available in more states soon. When it comes to New York, I hope to be among the first to jump in!