INSUBCONTINENT EXCLUSIVE:
Fintech startup Robinhood is expanding its cryptocurrency trading product with two new token listings
Users in selected states can now trade Litecoin and Bitcoin Cash from the app.
Robinhood is currently providing one of the easiest ways to
get started with cryptocurrencies
You can download the app, upload some money and buy tokens in just a few minutes.
But there are a few caveats
First, Robinhood is only available in the U.S
if you want to trade stocks, ETFs and options
And if you&re interesting Robinhood Crypto more specifically, it is only available in 17 states.
Robinhood also claims that there no fee on
Given the liquidity of cryptocurrency exchanges, there always some spread
It means that if you buy one bitcoin and if you sell one bitcoin, there will be a tiny gap between those two prices because of the tiny
Saying that there no fee is misleading.
The startup doesn&t operate an exchange itself
It acts as a broker with other exchanges
That why it doesn&t make sense to say that Robinhood is going to kill Coinbase
Robinhood is most likely partnering with Coinbase behind the scene as one of its exchanges for instance
On a user experience level, Robinhood Crypto competes with Coinbase main product and Circle Invest.
The company has created a second company
that doesn&t comply with the same regulatory framework because it not a broker dealer
You can currently trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Unfortunately, Robinhood doesn&t let you manage your wallet addresses
It means that you can&t send or receive tokens from another wallet
You have to convert to fiat currency first
But it still a dead simple way to get started on this market.
