Should You Be Investing In RobinHood Crypto?
See the video or the article below!
So as I know robinhood crypto had more than 1+ million registered users, so I thought it would be an important topic to bring up on if you should be using it as well! To start things off RobinHood Crypto is not covered by SIPC (Securities Investor Protection corporation) and Financial Industry Regulatory Authority). Which is mostly due to the decentralized nature of crypto, but in the future some tokens may fall under this regulatory reach. Robinhood crypto is complaint with the Bank Secrecy Act as well as the Financial Crimes Enforcement Network, which pretty much is just to help defeat money laundering.
So to start things off Robinhood Crypto is now available in 16 states and seems to be looking for more. Also, the only trading pairs available on Robinhood crypto are Bitcoin and Ethereum. However, you can see real time market data about 14 other large projects. Currently they do not offer any involvement in ICOs, but in the future it is possible that they might offer them. Currently if you are signed up for Robinhood you would need to register and wait to get involved with crypto trading.
In my research I was not able to find any direct insurance on your assets of crypto within the Robinhood app. Which seems to be a pretty common theme within most exchanges currently. Also, I did not see any mention of rollbacks or any of that type of protection in the event your account has been accessed.
According to Robinhood all of their assets are stored in hot and cold storage options. They claim to use cutting edge security measures to store these assets. From what I have gathered they are purchasing these assets from other exchanges and storing them. So it might be a bit confusing with the no fees parts of their purchases, but the fees would have already been factored in, when your purchased the assets. Also, you would receive fees, once you go to sell the assets.
So for someone who is just a normal stock trader this platform can be very beneficial to them. Nice interface, easy to use and store crypto, and the fact that you have stocks and crypto right in your pocket. For someone who is a normal investor in traditional assets this can definitely bring a lot of attention to this space. Especially with sometimes wild price fluctuations, which can result in a lot of money lost or gained. They are able to get into the action without much knowledge of the assets them self, or how to actually use them.
On the opposite end however, you will be losing access to any airdrops with Robinhood. I was not able to find any sort of mention on being able to collect free assets that you can receive for holding things like Bitcoin. Also, you cannot freely move these assets like you could if you had the control over your private key. Let's say you really want to sell some of that Bitcoin at $20k, but Robinhood Crypto is temporally down, so you will not be able to do it until they allow it. This also hinders one of the biggest benefits that crypto has to offer, which is being used as a currency! You can't go to the store and just pull out your Robinhood app.
Also, if you have the control over your private key you will be granted a much higher level of security. You can store your coins in all sorts of highly secure devices such as the ledger or Trezor with a good sense of comport and security. This will allow you to get that good nights sleep that you have been looking for since you started getting involved with cryptocurrency.
While I think that there is many more reasons to use other options instead of Robinhood for more intermediate and advanced users, Roobinhood does have a few nice features. I would love to hear what your guys thoughts are!
If you would like to sign up for Robinhood and get a free stock for joining hit the link below!
https://share.robinhood.com/brycee53