What are the pros and cons of Robinhood Crypto Trading app?
To invest or trade cryptocurrencies, you must first open an account at one of the many online exchanges. Robinhood is just one of them, and a popular one. The US-based platform is best known as the stock trading app that pioneered the concept of commission-free trading years before most others even thought about it. Later, when the crypto boom hit the world, it also offered its services to those interested in the emerging industry. Robinhood is popular with beginners because of its user-friendly interface.
What other factors determine the value of Robinhood? And what are its flaws, if any?
1. Unlike many other similar platforms, Robinhood offers commission free trades which basically means that the investor is not required to pay the platform any fees to complete trades. For example, some of the best crypto trading apps charge up to 1.5% trading fees for most transactions. Suppose you want to buy Rs 1000 worth of Bitcoin, then you will need to pay Rs 15 in commission. However, Robinhood charges a variable order flow fee.
2. In terms of security, it follows a 2-step verification process. Robinhood offers a cold storage facility as well as crypto platform breach insurance.
3. Robinhood is an intuitive application. This means that the user interface is not cumbersome for the user. The interface is user-friendly and displays the most common functions in a single menu, rather than burying them in multiple menus with rigid hierarchies.
4. The app supports purchases of cryptocurrency, stocks, ETFs, and options. It is therefore an application, with multiple advantages.
1. The biggest downside to using Robinhood app for cryptocurrency trading is that you can only buy, hold and sell cryptocurrency. You cannot send your Bitcoin to another cryptocurrency wallet, nor spend it on actual purchases or receive it from other people.
2. Robinhood supports the trading of a limited number of cryptocurrencies. Right now that number is seven, including chart tops like Bitcoin, Ethereum, and Dogecoin. If you decide to diversify your crypto portfolio, you only have seven options.
3.In addition, the app is only available to users based in the United States.