Robinhood Markets Inc. has released an application in certain states that will now allow you to trade cryptocurrencies. Robinhood more widely known for their services in stock trading has now decided to step into the cryptocurrency market. Robinhood’s new app has over 4 million users and have transactions adding up to more than $100 billion dollars.
Robinhood has been spearheading the movement of free trading services; starting in 2013 Robinhood launched it’s stock trading service which ditched fees per trade. Coinbase, which has been the leading platform for trading cryptocurrency in the U.S, has been charging fees ranging from 1.5% to 4%. When trades begin to enter the thousands or tens of thousands, these fees quickly add up. However, with Robinhood’s new application the playing field may have changed, with 0 transaction fees, many Coinbase users will be eager to switch to make their profits there. This will either cause Coinbase to decide to lower fees or take them out completely.
Being a new application into the cryptocurrency market, the biggest worry is of security. Cryptocurrency exchanges have suffered huge hacks within the last few months discouraging new investors to put their money in. Breaches of security and fees have been the biggest stains on the history of Cryptocurrency exchanges However, if Robinhood shows that it is trustworthy and can fare better than Coinbase with the surge of new users it could be the new Cryptocurrency giant.