The Robinhood crypto wallet isn’t well-known in the crypto world, and there are many explanations. But don’t worry; in the guide that follows, we’ll go over each one in detail.
The Robinhood wallet has also been the subject of several prominent controversies, many of which have to do with the brand’s overall crypto philosophy and how they treat user privacy and anonymity. Much of it will be addressed as well.
TL;DR: The Robinhood crypto wallet started as a free stock trading site, but it gradually spread into the crypto world. Although it has some great usability features, it would be an excellent companion for beginners and has low fees. It is an online wallet, which poses significant security concerns. These excellent features are not present in acorns when you try to compare Robinhood vs Acorns
PROS OF THE ROBINHOOD CRYPTOCURRENCY WALLET
As you may have guessed from the introduction, the Robinhood crypto wallet is a little out of the ordinary, at least when it comes to cryptocurrency storage in general. That’s because Robinhood didn’t begin as a cryptocurrency wallet, and it didn’t even begin as a cryptocurrency exchange platform!
It began as a stock exchange, not a stock exchange. As you can probably see, that’s a long way from the crypto world – at least on the surface.
Vlad and Baiju, two friends, founded the business. Both men were roommates at Stanford and went on to found their financial firms after graduation. The men finally found a massive paywall in place, making it impossible for anyone to gain access to stock exchanges.
Both men realized that something needed to be done about it. The “something” turned out to be Robinhood.
Suppose you go to the company’s official website right now. In that case, you may not even be able to find the “Robinhood crypto wallet” section. Even the crypto segment seems to be hidden away – Robinhood is still more focused on conventional stock markets than on the crypto side of things.
As you would suspect, this has some consequences, most of which aren’t all that optimistic. Nonetheless, the brand has made it into the crypto world and provides its users with an intriguing crypto wallet option.
Exchange Options in Robinhood
Although we’ve already mentioned that, let’s get one thing straight right away: the Robinhood crypto wallet isn’t even a wallet at all. When it comes to cryptocurrency, Robinhood is a cryptocurrency trading site.
On the one hand, this is an issue, which we’ll address later in this Robinhood Bitcoin wallet analysis as we go through the cons. However, the ‘positive side of things is that you would easily trade and exchange cryptocurrencies.
In the first place, this is commonly thought to be the fundamental strength of online wallets. You don’t have to think about coping with the lengthy and complicated processes of linking your hardware wallet to exchange to make a transaction because they’re already linked to one.
As you would expect, actively trading their crypto coins will benefit the most from this. In other words, the Robinhood wallet is best for short-term traders: since your cryptos are still stored on an exchange, you’ll be able to execute trades quickly and efficiently, eliminating the risk of losing out on a potentially lucrative opportunity.
Supports All of the Main Cryptocurrencies
The Robinhood crypto wallet supports all of the major cryptocurrencies, which is something you’ll note right away.
You might wonder what constitutes a “key” cryptocurrency. The coins that you can store on Robinhood are as follows:
- BCH Bitcoin cash
- Bitcoin SV
- Ethereum Classic
As you might be aware, Bitcoin is the ‘main’ cryptocurrency, the one that began it all. All subsequent cryptos are referred to as ‘altcoins,’ which include everything from Ethereum and Litecoin to Dogecoin and NEO.