Robinhood plans to expand its cryptocurrency trading operations and may add new coins to the platform.
In February, Robinhood revealed it had added 6 million crypto customers in less than two months, though it declined to share the total number of customers trading crypto on the platform.
In 2020, the monthly average of new customers trading on Robinhood Crypto was approximately 200,000.
To make the case for trading bitcoin on Robinhood, Tenev compared the app’s commission-free investing with Coinbase, the largest cryptocurrency exchange in the U.S. Coinbase charges a commission of one-half of one percent for cryptocurrency purchases and sales.
Far more sensitive to privacy and centralization issues than traditional retail investors, may not want to trust Robinhood with their assets.
Following an 800% spike in DOGE’s value in January, Robinhood put a temporary halt on instant deposits for crypto purchases, meaning that users could only buy the assets with funds already deposited in their accounts.
The brokerage receives compensation for directing trade execution to third parties, usually higher-frequency trading firms.