Robinhood Review for Crypto Trading: Updated 2022
In this Robinhood review, we’ll be having a closer look at the platforms features and fee structure.
Robinhood is one of the most versatile platforms for new-age investors! The platform was founded with expertise around cryptocurrency, stock, and options to ensure seamless access to investors of all shapes and sizes.
One of the key contributors to the idea of zero-commission trading, the platform has been a pioneer for its approach since its 2015 launch. This crypto broker facilitates transactions for buyers, allowing them to purchase altcoins.
Robinhood: At A Glance
- Intuitive applications
- Supports crypto, ETF, options and stock purchase.
- No commissions (order flow fee varying with trade)
- Supports total of 7 cryptocurrencies
- Beginner-friendly UI
Founded in 2013, Robinhood is a prominent US-based crypto broking platform developed by Vladimir Tenev and Baiju Bhatt. Since its inception, the platform has been a massive hit due to its smooth interface and zero commission strategy.
Leading financial authorities, Robinhood is a licensed and fully regulated company, including the US Financial Industry Regulatory Authority (FINRA) and Securities Exchange Commission (SEC).
1. RobinHood Free Trading 2022
One of the perks of using the Robinhood platform is that it allows trade of cryptocurrencies for free without giving commission of any form. Furthermore, access to cryptos like Bitcoin and Ethereum allows you access to some meme coins like the popular Dogecoin.
Additionally, users can purchase cryptocurrencies just like any regular exchange (24*7*365 days). However, it should be noted that Robinhood is a crypto broker; it doesn’t allow you to take custody of your cryptos as the platform doesn’t support an online wallet. Furthermore, investors can’t sell their crypto funds using Robinhood; instead, they must sell their investments and transfer them to their external accounts.
2. Robinhood Instant & Gold
Robinhood’s Instant & Gold is an advanced research platform that is open under a premium subscription base. Charged at $5 per month, you typically are provided with instant access of up to $1,000 for cryptocurrency trading. If applicable, the platform also settles the remaining funds, which are not instantly available at the time of settlement.
With Gold, users can access a higher level of instant transfers, up to a value that matches their portfolio. Starting at a minimum of $5,000, it increases to $50,000 maximum.
Robinhood can be a tricky platform when it comes to trading crypto. There are two reasons behind the same:
- The platform doesn’t allow you to sell your crypto directly.
- The charges for order flow are hidden over the platform.
However, trading cryptos over Robinhood is majorly free. To give you a better idea, here’s a table which discovers the comprehensive fee structure over the platform.
|Bank account||0% fee|
Coming over to the security aspect of the platform, Robinhood uses the basic industry standards like the 2FA (two-factor authentication) and FDIC (Federal Deposit Insurance Corporation) insurance measure over your USD balances. The account passwords over the platform are hashed out using the BCrypt hashing algorithm. Additionally, security measures over its phone application are handled by FaceID, TouchID, or a PIN code, besides the 2FA paired with SMS or an external authenticator application.
Robinhood also stores its crypto funds in cold storage, held by an insurance policy that covers potential breaches of its coins stored over hot storage.
5. Customer Service
Customer support can be a bit thin over Robinhood. For example, the platform doesn’t display a specific phone number or online chat option to provide customer service. Instead, customers need to be signed into their accounts to request a callback from the platform. Additionally, the platform supports a fairly robust FAQ support page to help you with the errands.
Steps To Open A RobinHood Account 2022
As a new user, the chances are that you might get confused around where, to begin with, your Robinhood account. Therefore, here’s a step-by-step approach to help you open your trading account over the platform:
Visit Robinhood.com from your browser and navigate the sign-up page. Here you’re required to input some basic information like your email and name. Next, you’re asked to create a password and username for your account following this.
Here, you are required to input your contact information, including your residential address and zip code.
You’ll be asked to verify your identity in the third step. Here you need to provide your SSN (Social Security Numbers), followed by relevant, genuine authorized documents.
Once you’re done with the steps above, it’s time to fund your account and start trading.
That was your walkthrough of the Robinhood platform. Being a major trading platform, this reliable and primarily free platform is designed for the convenience of new users. However, it is always a wise move to invest wisely; all the best!