Robinhood is going to roll out its commission-free cryptocurrency trading feature in places across the US. This is going to make a big impact as Coinbase, the predominant crypto trader in the country charges from 1.5% to 4% as commission for each transaction.
Robinhood had already entered the Cryptocurrency space earlier this year. And now with this new feature, users can buy and sell Bitcoins and Ethereum at no added costs. There is also the allowance to track how these and fourteen other coins are performing in the market. And did we mention that all these features are integrated into a super smooth application which you will love?
So how is Robinhood capable of delivering such a great deal? Well, they have a slim and compact team of simple engineers and its app. This cuts down on the company cost. Then, through its lucrative zero-commission offers on stock trading, and now cryptocurrencies, the company reels in an abundance of users. All these customers keep some cash within the app, and the company makes a profit by cashing in on the interest. The company also has a Robinhood Gold subscription which lends money to users which they can use for trading.
You will be amazed that such a simple strategy has allowed the startup to raise up to $176 million. Also, since most customers have to pay around $7 for regular stock trading apps, or a small percentage on crypto trading, a no commission fee is also saving them tons.
For example, after the disclosure of the new cryptocurrency trading support on Robinhood, the platform received a rapid influx of over 1 million users, so now they are a platform with a 4 million plus user base. And till this day, the platform has helped these users save $1 billion in commission fees.
So if you are interested, here is where you can sign up for Robinhood Crypto. Currently, the service will be provided in areas including California, Massachusetts, Missouri, Montana, and New Hampshire, with new states to follow. Even though investors in other states won’t be able to enjoy trading benefits immediately, they will still be allowed to track market data for all sixteen cryptocurrencies.