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Robinhood is a popular investment app that allows users to trade a variety of assets, including crypto. But can you actually trade crypto on Robinhood?
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Introduction
Robinhood is a commission-free stock trading app that has expanded into the world of cryptocurrencies. But can you trade crypto on Robinhood?
The answer is yes, but there are some things you need to know before you start trading. Here’s what you need to know about Robinhood and cryptocurrency trading.
What is Robinhood?
Robinhood is a commission-free stock trading app that offers investors the ability to trade stocks, options, ETFs, and now cryptocurrencies. The app is available in the United States and has over 4 million users.
What cryptocurrencies are available on Robinhood?
At the moment, Robinhood offers trading in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), and Dogecoin (DOGE). The company plans to add more cryptocurrencies in the future.
How does Robinhood make money?
Robinhood makes money through interest on the cash and securities in user accounts, as well as through margin lending. The company also sells order flow to high-frequency traders.
What is Robinhood?
Robinhood is a commission-free trading platform that allows users to buy and sell cryptocurrencies, as well as stocks, ETFs, and options. Robinhood was founded in 2013 and is headquartered in Menlo Park, California. As of May 2021, Robinhood supports trading for 16 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Litecoin (LTC).
What is Crypto?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Can You Trade Crypto on Robinhood?
As of now, Robinhood only allows trading in Bitcoin and Ethereum, but there are plans to add more coins in the future. Currently, Robinhood only supports these two coins, but there are plans to eventually support more. So, if you’re looking to trade cryptocurrencies on Robinhood, you’re currently limited to Bitcoin and Ethereum.
How to Trade Crypto on Robinhood
In order to begin trading cryptocurrencies on Robinhood, you first need to add crypto to your watchlist. To do this:
Tap the search bar
Type in the name of the cryptocurrency you want to add and tap it when it appears
When you’re on the asset page, tap “Trade” in the bottom right corner
On the following page, tap “Buy” under the section labeled “Crypto”
Enter the amount of cryptocurrency you want to purchase or tap and drag the slider to select a dollar amount
Tap “Preview Buy” and review your purchase details before tapping “Confirm Buy”
Conclusion
Robinhood is a popular investment app that offers commission-free trading of stocks, ETFs, and options. The app also has a cryptocurrency trading feature, but it is only available in certain states. Unfortunately, due to regulatory reasons, Robinhood is not currently available in New York.
