Trading app and platform, Robinhood, will allow consumers to buy digital assets and sell them without any transactions fees. This will be implemented sometime in February. The digital assets that will be free to trade, buy, and sell are Bitcoin and Ethereum. Other trading exchanges charge fees, for example Coinbase charges hefty fees from 1.5 to 4 percent. Robinhood will also be featuring tracking of cryptocurrencies, which will include Ripple and Litecoin. Robinhood is not looking to profit from anything and is looking to break even on their operations. The platform already has a user base of 3 million people and with these announcements it will definitely expand a lot more. By utilizing all of these features in one app, Robinhood will further prove that the digital asset craze can be legitimized. The platform has been in business for 5 years and is valued at $176 million. Big time investors have invested in the company, such as: NEA and Index and Andreessen Horowitz. Investors of the Robinhood community will be able to have their assets earn interest and they can pay for Robinhood Gold premium tier at a price of $6 to $200 per month. This tier allows them to borrow from anywhere between $1,000 to $50,000.
Robinhood Crypto asset works with your connected bank account and will allow a member to transfer upto $1,000 (higher if you have Robinhood Gold). Anything higher than $1,000 will be transferred as an ACH and will take a bit longer for it to send. When a customer places an order to buy or sell, the trading platform connects the customer to other exchanges and markets to find the lowest and best price. To try to avoid market volatility, the app also puts a protection over your trade so it can’t be carried out close to the estimated price, the app will let you know when the price is close to what it was purchased for. In case there are crazy market trends, the app also allow users to set limit orders that will let you put a price for it to automatically buy or sell. The cryptocurrencies that can be tracked through the app are: Bitcoin, Bitcoin Cash, Ripple, Ethereum, Litecoin, Ethereum Classic, Monero, Stellar, Dash, Zcash, Bitcoin Gold, Qtum, NEO, Dogecoin, Lisk, and OmiseGo. For now, only Bitcoin and Ethereum can be traded. Robinhood has selected these coins, because they are the most popular among users and are the most mature in the market.
The company will also be adding security features such as two-factor authentication. Many people have dealt with scammers and hackers, so Robinhood would like to ensure that users wallets will not get infiltrated. Robinhood has dealt with over $100 billion dollars worth of transactions and have saved their community over $1 billion dollars in fees.