The newly-released Robinhood Cryptocurrency exchange
is an altcoin platform upon which you can trade and invest in a variety of digital currencies using a mobile application. Robinhood itself has been around since 2013, dealing solely in traditional stocks and securities, but this month the company has added cryptocurrency stocks to its existing portfolio.
Benefits of Robinhood
With its history as a traditional exchange, Robinhood Crypto has much to offer investors, especially those who are new to the game, or operating at a lower volume of trade.
For example, there is no lower limit for investment. Do you want to buy a single cent’s worth of cryptocurrency? Robinhood will let you do that (although Bitcoin trading – being the most popular altcoin out there – starts at the only slightly less attainable 10 cents).
Also, Robinhood is an entirely fee-free exchange platform, unlike most other crypto exchanges, which either impose a flat rate fee per transaction, or a percentage of the value of the currency in which you are trading.
How it works
Robinhood has a really simple interface for trading and investing
. First of all, the app is connected to an external bank account, from which you can deposit your funds for trading. This deposit has a lead-in time of three days, which is how the company makes its money (through the interest earned during those three days) and can afford to be fee-free.
All the available securities are right their on your application hub, from cryptos to stock options, ready for you to buy and sell in real time. Crypto news and price alerts are also available from your hub, covering 14 cryptocurrencies (at time of writing).
Advanced trading features
If you place an order through Robinhood and the market takes a sudden dive before the transaction can be completed, the app will either return your money, or wait for the market to reach the previous level, which will be of comfort to more cautious investors. Likewise you will be able to place “limit orders” wherein you set a price you are prepared to buy or sell your altcoins at, and the app will automatically do so once the market reaches the price.
At this time, Robinhood only allows trading in the two biggest cryptocurrencies: Bitcoin
and Ethereum. However, with them providing price news on a dozen others, it seems likely that they will branch out into these other altcoins soon enough.
Original Image Source: Wikipedia Commons