Robinhood is launching a Crypto Trading App

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#41


#42

Why are you sending me that lol?


#43

Oops sorry, I meant to reply to the whole thread :sweat_smile:


#44

Can robinhood be used on desktop?


#45

They did create a way to trade traditional markets on desktop, but I’m not sure if that’s going to include crypto.


#46

No-commission stock trading app, Robinhood will let you buy and sell Bitcoin and Ethereum without any added transaction fees starting in February, compared to Coinbase’s 1.5 to 4 percent fees in the US. And as of today Robinhood will let all users track the price, news, and set up alerts on those and 14 other top crypto coins, including Litecoin and Ripple.

“We’re planning to operate this business on a break-even basis and we don’t plan to profit from it for the foreseeable future” says Robinhood co-founder Vlad Tenev. “The value of Robinhood Crypto is in growing our customer base and better serving our existing customers.”

By essentially using crypto trading as a loss leader instead of its primary business like Coinbase and other apps, Robinhood could substantially expand beyond the 3 million users it already has. Simplifying trading and tracking could bolster Bitcoin and Ethereum. And by combining it with traditional stock, ETF, and option trading in a single app, Robinhood could further legitimize the cryptocurrency craze. The two trading worlds could cross-pollinate, dragging even more people into the crypto scene.

Robinhood founders Baiju Bhatt (left) and Vladamir Tenev (right)

Many of the startups dealing in crypto are upstarts with questionable track records. But five-year-old Robinhood has raised $176 million from top investors including Andreessen Horowitz, Index, and NEA that now value the company at $1.3 billion. There’s clear long-term benefit to rolling up crypto traders and using the feature as a wedge to get them to hold money with Robinhood where it earns interest, and pay for the Robinhood Gold premium tier for $6 to $200 a month that lets them borrow between $1,000 and $50,000.

Here’s how Robinhood Crypto works. You can instantly transfer up to $1000 from your connected bank account (more if you have a Gold membership), with additional funds coming over slower ACH transfer. For smaller traders, that could eliminate the annoying delays on other platforms that can make you miss a low price you want to buy up. The whole Crypto section of Robinhood is styled with an 80s Tron design to denote the 24-hour trading window, compared to its day and night themes for when traditional stock markets are open or closed.

When you place a buy or sell order, Robinhood gives you an estimated price, connects to a slew of trading venues, exchanges, and market centers to find the lowest price, and uses its economies of scale to improve to score better prices over time. To counter market volatility, Robinhood puts a “collar” around your trade so if it can’t execute it at close to the estimated price, it waits for the price to return or lets you know.

And in case the price of a coin skyrockets or plummets, you can place limit orders to set a price where you automatically buy or sell. The full list of coins you can track is Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Ethereum Classic, Zcash, Monero, Dash, Stellar, Qtum, Bitcoin Gold, OmiseGo, NEO, Lisk, and Dogecoin.

Only BTC and ETH will be available for trading when that rolls out to waves of users starting in California, Massachusetts, Missouri, Montana, and New Hampshire in February, though more will be added. “We’re extremely selective about the cryptos we’re making available on the platform” says Tenev. “We’re introducing those first because these are the most mature coins that people are trading these days. Multiple times people have declared them dead and they’ve come back stronger than ever.”

To back-up the new Robinhood Crypto feature, the company is adding new two-factor authentication options including integrations with authenticator apps to ensure people don’t get their wallets stolen and dumped. “There are several senior world-class people that we’ve hired recently that are building the system in-house” says Tenev. Still, the move paints a giant target on Robinhood’s back. If the company gets hacked, or individual users get robbed, it could tarnish the fintech startup’s reputation.

Demand for the product was clear, though. 100,000 of Robinhood’s users were regularly seaching for crypto pricing and trading in its app, and 95% of those surveyed said they’d invest in cryptos if the product supported it. Robinhood even had to send a cease-and-desist to “Cobinhood”, a competing crypto trading app that cribbed its name and raised $10 million in an ICO.

Judging by the choices of two top startups, you could see this week as a sign of cryptocurrency’s shifting purpose. Yesterday Stripe removed Bitcoin as a payment option on its platform, and now Robinhood is adopting trading. “People are thinking about cryptos less from a payments standpoint and more from an assets investment standpoint” Tenev explains.

Robinhood Crypto features a Tron-style 80s design motif

As for whether he’s personally invested in the crypto scene, Tenev admits “I’m a dabbler, definitely, but I wouldn’t say that it’s all that significant.” But it’s a good fit for his business, which used a lean engineering team to drop stock trading fees to zero while competitors like Scottrade and E*trade can charge over $6 per trade to cover their marketing and expansive retail footprint with huge overhead. Now Robinhood has handled $100 billion in transactions, saving its users over $1 billion in fees.

“[Cryptocurrency] puts power that’s historically been held by financial institutions in the hands of the people. I think that lines up directly with Robinhood’s mission to democratize the financial system” Tenev tells me, concluding “We’re an established company and we can handle it”. The confidence to burst into the wild west of crypto could either tank his startup with a massive security fail or greatly boost its traction by alligning with what’s become a cultural phenomenon.

See original link: https://techcrunch.com/2018/01/25/free-cryptocurrency-trading-app/


#47

Pretty Sweet,

Hope they add Canada to available countries this year.


#48

I bet they will! That would be awesome!


#49

Saw some more bullet points:

Robinhood, a zero-commission stock trading platform popular with millennials, is making the plunge into cryptocurrency. Starting in February, Robinhood will allow customers to buy tokens including Bitcoin, Ripple, and 14 other cryptocurrencies using the same streamlined, no-commission approach it offers for stocks. This is important for several reasons:

• This brings a new, crypto-focused audience to Robinhood, while also introducing token investing to its existing user base. Things to watch here include: user numbers for Robinhood and Coinbase, potential increases in crypto-trading volume, and the impact on Robinhood’s operations and customer support.

• Robinhood brings a more polished and engaging user experience to the cryptocurrency world. This may be one of the most compelling aspects of Robinhood’s decision — there are very few consumer-friendly products in this space, so expect Robinhood to hold this advantage for quite some time.

• Robinhood says it will allow customers to acquire stakes without paying a commission or fees. Popular exchanges, such as Coinbase, all charge a commission on buying and selling. It will be interesting to see if Coinbase is forced to respond to Robinhood’s zero-commission approach, especially given all the attention Coinbase received around its eye-popping 2017 revenues ($1 billion). But…it’s really hard to compete with free.

• Lastly, Robinhood’s move into the cryptocurrency space brings additional legitimacy and attention to a burgeoning industry. I’m curious to see what the capital allocation breakdown of Robinhood’s user base looks like 12 months from now.

via Fortune


#50

I’ll be the first to admit that if it weren’t for Robinhood, I wouldn’t be involved in the crypto space. Their user base and subreddit are super friendly and open to newcomers (A lot like the Pub!!! :slight_smile:)

To those of you who are skeptical about the “no fees” portion of this, I commend you. I was incredibly skeptical about this app, and admittedly, it took me weeks to actually pull the trigger of signing up. If the crypto side of this app works the same way as the securities side, there truly is no fees. I’ve made between 20-30 stock trades since I started last summer and I haven’t had to pay 1 fee.

The other cool thing about the app is that you don’t actually lose a ton of value if you aren’t part of the Robinhood gold part of it. I expected a drop off after a “trial period” or whatever, but the app has worked the exact same way since I opened my account. Something you rarely see with tech startups these days…

If anyone has any questions about it, feel free to ping me, or take a look at this interview with Vlad (one of the cofounders). This was the interview that kind of pushed me over the edge to sign up.

Also - if you plan on using this, I highly suggest using a peer’s code because they give you free stocks - one for you, one for the person giving you the code (could be zynga, could be apple). Even if you don’t want to be involved in stocks, you can sell your free share and turn it to crypto once it’s available to you!


#51

:zap:

Fortune is not sure it seems.
They have edited the article and it now says:

Starting in February, Robinhood will let customers buy bitcoin, Ripple, and 15 other cryptocurrencies

15

and then also

It will make the 16 different types of currency available in waves, beginning with bitcoin and Ethereum, and allowing customers to track the other ones.

Notice how the editor uses lower capitalization for Bitcoin :nerd_face: :rofl::joy:
"NOT LIKE THIS GUYSSS!!! :doge:
Just like in one of your recent videos @peter :rofl::joy: :rofl::joy:

Anyways I am happy if they offer BTC and ETH.
Of course DOOOGE :doge: would be awesome.

But I am already sold at zero fees and that sexy looking UI. :heart_eyes:

I am wondering if users will get an actual wallet (address) , so they could transfer away from Robinhood to a hw wallet.
:thinking:

They way they are rolling this out geographicallyand even state by state in the US let´s me doubt I´ll ever be able to use it from Germany.


#52

Hey Peter! I just wanted to say that I think Robinhood has been an established stock trading company for a long time, so I do think they may have already anticipated the massive amount of people that will come to the app when crypto is added. I was seaching for Bitcoin and Litecoin on robinhood last year before I knew about bittrex. But I and many others got robinhood about a year or two ago in anticipation of the snapchat investment with Snap.inc! I just heard on your video that you might think it’s new, but these guys have been in the game for quite a while now, and one of them has holdings in bitcoin as well. I think really good things are going to come from robinhood, especially since many people who have largely kept to stock only trading can now use their pre-existing accounts on robinhood to buy crypto this upcoming February!


#53

When they let me buy it and then send it to my ledger I’ll consider using them.

Coinbase may have a fee to buy, but sending from gdax to ledger is free. And when fees were 25 bucks, at times, the fee was covered by the no transfer fee


#54

You will be able to move your coins around. FOR FREE


#55

I don’t want to trade free. I want them off exchange and into my hands. I’d rather lose 1% to gain 99% insurance

Plus, this is a traditional exchange. Can anyone say, IRS. Get ready to be taxed for every single trade. You’ll trade a “dust fee” for cap gains


#56

So you will be able to buy the coins they listed such as NEO and DOGE eventually with Fiat just like buying BTC or LTC at Coinbase?
Coinbase is a huge portal for people newer to crypocurrency like me. Won’t that potentially be a massive boon for the listed coins?
:owl:
Imagining millions of noobies getting into crypto for the first time and they use this app and the cheapest one they see is Doge and no transaction fee…


#57

listed as “App of the day” on Apple Store


#58

#59

Looks like it’s opened today. Just btc and Eth I believe. Whatcha think about this “no fee” model?


#60

i’m taking a deeper look… seems compelling… this “zero fees” opportunity…