The popular online trading platform may be trying to fill gaps in its services by adding the Robinhood crypto wallet. By launching crypto wallets, traders on the Robinhood platform are given more mainstream uses for the digital currencies they’ve been buying and selling.
Robinhood plans to test the wallets with a small group of customers before expanding the offering to more than 32 million registered users. Eligible Robinhood customers can now join the crypto wallets waitlist. With Robinhood crypto wallets, users can send coins to other wallets and receive supported cryptocurrencies into their Robinhood account. Please note that this feature is only available to Robinhood Crypto Customers.
How to get a Robinhood crypto wallet
The wallets will allow Robinhood customers to own directly and transfer Bitcoin and other cryptocurrencies to pay for goods and services rather than trade crypto as is currently allowed. Here are the steps to hold a Robinhood crypto wallet:
1. Join the waitlist
2. Invite friends and move up the list
Once you sign up for Robinhood and link your bank account, you’ll jump the list by half. Keep jumping the list for every friend you successfully invite.
3. Check your spot
Visit the detail page of any cryptocurrency on Robinhood to see your spot in line. When you’re near the front of the waitlist, you’ll be one of the first to get invited to try out wallets.
Robinhood crypto wallet benefits
Crypto wallet holders can use the platform upon registering as users. A few taps on the beta version of the application lead users straight to the verification and validation page. The validation of their accounts depends on the success of the identity verification to prevent fraud and theft on the Robinhood platform.
Users are subjected to a phone verification procedure which is one of the most challenging but most important part of the registration process. With one account, Robinhood crypto wallets holders do not only have access to the Robinhood markets; they have access to the Robinhood app where trading activities can be conducted. Crypto holdings, cryptocurrency transfers, and cryptocurrency trading can be done in all crypto markets available on the Robinhood cryptocurrency trading platform.
Robinhood operates a platform that allows commission-free transactions for users while it charges the crypto network for each trade conducted on the platform. Other than trading, crypto can’t be spent on purchases, even at places that accept crypto. Users can’t move their crypto to a different exchange for staking or lending to generate passive income during the ownership process.
Robinhood account holders were hoping that the Robinhood crypto wallets could make their crypto more functional, and we now see it as a great opportunity.
Do I need Robinhood crypto wallets to trade?
You don’t have to own many crypto wallets to trade crypto on the Robinhood crypto platform. With a Robinhood account, you have access to a crypto wallet where other wallet addresses can connect to and with you for a transaction.
Think of it as your subscriber identity module (SIM), where everyone who has your address has access to you.
Once you log in to your Robinhood crypto wallet after signing up, you can trade supported coins on the app and receive digital currencies.
Robinhood platforms offer crypto wallets to users on the Robinhood markets to help them receive supported cryptocurrencies. Robinhood account holders can fund their crypto wallets with an affordable investment budget to buy and receive digital coins.
How secure is the Robinhood trading platform?
The Robinhood platform is safe as long as you keep your password safe, utilize Multi-factor authentication (MFA), and keep your SIM from swapping.
Keeping coins safe is the joint responsibility of the user and the Robinhood platform. While the platform provides users with stable and secure platforms, users should also do everything possible to keep their cryptocurrency safe.
On the other hand, Robinhood crypto markets are a safe place to transact deals. The platform does not charge users when they receive supported currencies on their app. The supported cryptocurrencies network pays their royalty for the trading rights they provide on their application.
Although it should be noted that Robinhood is facing a charge from the securities and exchange commission in the United States regarding Robinhood’s stock and cryptocurrency trading, Robinhood’s transaction-based revenue method is being investigated. To read more information about this, visit the financial news page here.
Robinhood cryptocurrency platform’s market data statistics
According to BusinessofApps, Robinhood’s financial performance in the previous market year are in this order:
- Robinhood generated $682 million in payment-for-order-flow revenue in 2020, a 514 percent increase year-on-year.
- After suspending trades for a week, it added $3.4 billion to its balance sheet during the GameStop stock squeeze.
- In May 2020, Robinhood revealed it had 13 million active users. We expect that number has climbed to 20 million.
- It was recently valued at $20 billion pre-IPO, although secondary shares have valued it at $40 billion.
- Robinhood user average age is 31, which is five years since the app launched in 2015.
After the Robinhood crypto wallet was announced on September 22, over 300,000 customers signed up for the waitlist, and shares in Robinhood rose 11 percent on the same day, raising its market cap to $40bn. Options and crypto trading are the real drivers, but Robinhood’s push into crypto wallets is a smart move, as seen by crypto market analysts.
Robinhood Market’s cryptocurrency assets under custody hit $22.7bn at the end of the period, 29 times greater than the previous year.