Robinhood Crypto Expands Coins: Should You Get Started on the Platform?
There’s good news for users of Robinhood Crypto this week! In a recent blog post, Robinhood introduced both litecoin (LTC) and bitcoin cash (BCH) to the trading app. Before the announcement, Robinhood Crypto was only offering bitcoin (BTC) and ether (ETH) as supported cryptocurrencies, leaving many traders out of luck if they didn’t have access to other exchanges.
The recent decision comes as Robinhood is working to get more traction in the cryptocurrency markets. The US-based fintech company first made a name for itself as a stock trading app.
The app, called Robinhood, quickly become popular due to how easy it was and that it offered zero fees on normal trades. Now, one of the areas the company is focusing on is crypto. With Robinhood Crypto, users still get access to zero fee trading. Sounds pretty great, doesn’t it?
We all know that Coinbase has some pretty hefty fees, especially when paying with a card, but Robinhood has none? Yes! Though there are a few catches you’ll need to know about before you create your account.
Things to Consider
One of the ways Robinhood ensures that they can maintain a zero fee policy is by limiting day trading. However, the restrictions put in place for regular trading accounts do not count for cryptocurrencies.
So if you’re looking to get started doing some day trading, then Robinhood Crypto could be a great place to begin. (Note: ‘Robinhood Crypto’ isn’t a separate app, just a reference to crypto trading in the existing Robinhood app.)
You’ll just need to keep in mind that if you dabble in the stock market, you are not allowed to buy and sell the same shares in the same trading day more than 5 times. If you do, you’ll get flagged as a “pattern day trader.” (You can learn more about account restrictions and requirements for day trading here.)
The Graphs Aren’t Amazing
A well-known shortcoming for Robinhood, whether it’s crypto or non-crypto, has been graphs. Again, this is a free platform with no fees for trades, so you shouldn’t be expecting a Bloomberg Terminal competitor here.
Above, you’ll see the BTC graphs we get while on the web-enabled app. As a relatively recent feature, you can now access your account on your computer online as well. Previously, Robinhood could only be accessed via smartphone or tablet.
Unfortunately, when it comes to the charting: what you see is what you get. Sure, we can switch from “Live” to a 1 day, 1 week, 1 month, 3 month, 1 year, or 5 year chart, but that’s it. You won’t have any access to indicators or other methods of analysis. In fact, you won’t even get a candlestick chart!
Of course, you can always remedy the situation for free by using TradingView to analyze and plan purchases, then execute them via Robinhood Crypto.
And do you see that box over on the right-hand side? Yeah, that’s a little important as well.
Can You Even Get It Yet?
This pesky box here, this can be a bit of a roadblock. So before you go running out deciding that you’re going to start day trading cryptocurrencies, you should first check to see if your state is on the list. At the moment, cryptocurrency trading is only available for a total of 17 states in the US. They are as follows (look for your state):
So if your state’s name isn’t on the list yet, then it looks like you’ll have to wait for a bit. In the mean time, you’ll have the option to start trading in the stock market, just be sure to remember to keep track of your day trading.
NO. Crypto users on Robinhood will not be able to use their accounts for participating in initial coin offerings (ICOs), so make sure to keep that in mind. While that’s not a deal breaker for some investors, there are others who care only about ICOs.
It should be noted, however, that the official page states “at this time.” There is always the possibility that the US could see a shift in rules regarding ICOs in the future and restore the 2017 style ICO markets.
In the end, the choice is yours. If you live in a state where it’s not yet available, then we highly recommend getting on the ‘early access’ list to be able to test the live version in your state as soon as it’s ready. And hey, even if you don’t like it…it didn’t cost you anything to create.