Robinhood has started inviting users who subscribed for Robinhood Crypto to take part in an early access program, which will allow the investors to exchange cryptocurrencies, stocks and Exchange Traded Funds (ETFs) on one platform.
What the New Platform Entails
The gradual roll-out will be accessible to customers living in five states; California, New Hampshire, Massachusetts, Missouri and Montana. According to the company’s website, plans are in their advanced stages to launch the crypto trading functionality in other states at a later date. Meanwhile, all the investors will have the capacity to monitor and follow market data and info for 16 cryptocurrencies. During the launch, the company announced that it will support Bitcoin and Ethereum trading. However, since the traders can monitor and track 16 other cryptocurrencies, plans are underway to increase the cryptoassets offered in the near future.
The launch also comes with the Robinhood Feed, which is fresh way for investors to discuss what is happening in the crypto market. The company’s website says,
Investors will have a platform to discuss cryptocurrency news, market trends and swings, in real-time with other investors in the platform
However, the feed will be available to few investors and will evolve as per feedback and contributions.
Making the Financial System Work for Everyone
Regardless of the limited roll-out of the platform, the development and launch of Robinhood crypto promises to bring on board a lot of new cryptocurrency traders in the near future. CCN reports that it only took the company one week to acquire 1 million pre-registered users for the new platform. The company reported in its statement that the brokerage platform has hit the 4 million user mark ,who have cumulatively transacted more than $100 billion in volume.
In line with Robinhood’s mission ‘to make the financial system work for everyone’, the platform will not charge any commission on any cryptocurrency trade. However, prices will be inclusive of fees and commissions claimed by other underlying exchanges. CoinBase is expected to be a major competitor, having reached $1 billion in revenue by the close of last year. Square Cash will also be a major competitor as it recently unveiled commission-free Bitcoin trading for its customers in the US. Nonetheless, given its immediate popularity, it will not be a surprise if Robinhood acquires a substantial share of the cryptocurrency brokerage market in the US.
What are your thoughts about the Robinhood Crypto trading platform? Will it be a game changer in the market? Share your thoughts in the comments section.