Best Cryptocurrency Exchange App

What Are The Pros And Cons of Robinhood Crypto Trading App?

Crypto Concepts And Jargons Demystified By A
Written by publisher team

The application supports the purchase of cryptocurrencies, stocks, ETFs, and options.

To invest or trade in cryptocurrencies, you will first need to open an account at any of the many online exchanges. Robinhood is just one of them, and the popularity. The US-based platform is known as a stock trading app which started the concept of commission-free trading years before it was even thought of. Later, when the cryptocurrency boom hit the world, it also offered its services to those interested in the emerging industry. Robinhood is loved by beginners, because of its easy-to-use interface.

What other factors determine Robinhood’s worth? What are its drawbacks, if any?

Positives

1. Unlike many other similar platforms, Robinhood offers commission-free trading, which basically means that the investor is not required to pay any platform fees to make transactions. For example, some of the best cryptocurrency trading apps charge a trading fee of up to 1.5 percent for most transactions. Suppose you want to buy Bitcoin worth Rs 1,000, you will have to pay Rs 15 as commission. However, Robinhood does charge a variable fee for order flow.

2. In terms of security, it follows a two-step verification process. Robinhood offers a cold storage facility as well as insurance against crypto platform breaches.

3. Robinhood is an intuitive app. What it means is that the user interface is not cumbersome for the user. The interface is friendly and displays the most popular functions in a single menu, rather than being buried in multiple menus with strict hierarchies.

4. The application supports the purchase of cryptocurrencies, stocks, ETFs and options. So it’s a single app with multiple benefits.

Negatives

1. The biggest drawback of using Robinhood’s cryptocurrency trading app is that you can only buy, hold and sell cryptocurrencies. You cannot send your Bitcoin to another cryptocurrency wallet, or you cannot spend it on real-world purchases or receive it from other people.

2. Robinhood supports the trading of a limited number of cryptocurrencies. At the moment, that number is seven, including top charts such as Bitcoin, Ethereum, and Dogecoin. If you decide to diversify your cryptocurrency portfolio, you only have seven options.

3- Also, the app is only available for users residing in the United States.

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