Robinhood Crypto Exchange Review – Does it Protect Your Funds Well?
Team of STO Investment Platforms Reviewers
Robinhood is one of the best crypto platforms, but is it worth it? We’ll find out in this Robinhood review.
We’ll cover everything from available cryptos to the ease it offers. However, since this is a crypto-based Robinhood review, we will not be looking at stocks, options, ETFs, etc.
Robinhood Crypto Trading Platform Review: Introduction
Robinhood is a licensed and registered platform with more than 15 million users globally. The average age of a Robinhood user is 31 as the company mainly targets younger individuals.
Founded in 2013 by Vladimir Tenev and Baiju Bhatt, the company is headquartered in Menlo Park, California. It introduced ‘Robinhood Crypto’ in 2018 to cater to the growing demand for digital coins and now offers commission-free sales.
It is a publicly traded company and registered with the U.S. Securities and Exchange Commission. Moreover, it is also a member of the Securities Investor Protection Corporation (SIPC). Robinhood is available throughout the country, except for Nevada and Hawaii.
While the platform is free to use, the company also offers a paid plan for $5 per month. Called Robinhood Gold, it comes with perks such as bigger instant deposits, more marketing data, margin investing at 5 percent (9 percent otherwise), and professional research from Morning Star. New users can try the paid plan for free (1 month trial).
How Does Robinhood Work
Robinhood works like any other crypto exchange. It allows users to trade digital coins and start as little as $1. You will have to sign up for an account in order to trade digital coins. The platform will require the submission of personal information such as your Social Security Number and identity documents. In some cases, it could take up to two days for an account to be fully functional.
Once done, you will be able to make trades. The platform is easy to use. There’s a search bar that can be used to find coins one is interested in.
Click on your desired coin and you will land on its page where you will see the option to complete an order. Enter the required details, review the order, and allow it to be processed. The coins will appear in your account in a few minutes.
Similarly, selling is easy as well. Land on the crypto page you wish to sell and open the ‘sell’ form instead of the ‘buy’ form and enter the required details.
You will see charts that offer live prices. Clicking on the ‘Advanced’ button will show even more indicators including the option to create a ‘limit order’.
Robinhood Pros and Cons
Robinhood reviews cannot be considered complete without pros and cons, so here are some:
- Offers commission-free investing
- Works well on both computers and mobile devices
- Very easy to use with little to no learning curve
- Gives you the option to link bank account for easy deposits and withdrawals
Doesn’t offer some popular digital coins such as Ripple and Dash
Has been involved in some hacks and data breaches
What crypto is on Robinhood?
The platform allows users to buy and sell a large number of cryptos including:
Bitcoin Cash (BCH)
Stellar Lumens (XLM)
Bitcoin SV (BSV)
Shiba Inu (SHIB)
Ethereum Classic (ETC)
Some of these currencies are not available throughout the country due to regulatory limitations. Moreover, Robinhood supports real-date data for a number of digital coins including Ripple, Binance Coin, Bitcoin Gold, Cardano, Dash, Monero, Pancake Swap, Tether, and USD Coin.
Can you withdraw crypto from Robinhood?
While Robinhood allows users to trade crypto, it doesn’t have the option to withdraw digital coins. Users must first sell their coins and transfer funds to an external account. There is no option to directly transfer cryptos to a different platform.
How does Robinhood make money?
The company offers commission-free investing and makes a large chunk of revenue through transactions, including order flow payments. Robinhood saw an increase of 81 percent in net funded accounts in 2021 with a total of nearly 10 million new accounts added in the year.
In addition to this, it generates revenue through paid subscriptions, stock loans, margin interest, cash management, and investments.
How long do Robinhood withdrawals take?
Withdrawals usually take up to three days with no option to expedite the process. However, in some cases, money could show up in your account in under 24 hours or longer than three days.
Can Robinhood be trusted?
Despite having been involved in data hacks and breaches, Robinhood is still considered a safe and reliable name as the company is constantly working to improve security features and better protect assets.
Here are some of its main security features;
- No option to directly withdraw digital coins.
- The company is licensed to operate in all states it offers services in.
- Robinhood is a member of the SIPC and offers protection – up to $250,000 for cash claims and up to $500,000 for securities.
- A large chunk of digital coins is kept in cold wallets and cannot be accessed online.
- Since it is a US-based company, Binance has a money transmitter license from FinCEN.
- Robinhood offers security in the form of insurance by underwriters at Lloyd’s.
Furthermore, the company has a team of experts working to find vulnerabilities and make the platform more secure. It would be safe to say in this crypto trading platform review that Robinhood goes all out to protect itself and its users.
Is Robinhood safe?
If you look for ‘Robinhood testimonial’ or ‘Robinhood review’ online, you will find that it is a safe platform. It offers 2-factor authentication to stop intruders from accessing accounts.
Robinhood Crypto Exchange Review: Conclusion
We can conclude this Robinhood crypto trading platform expert review by stating that Robinhood can be an excellent platform for both new and experienced investors. It offers a large number of digital currencies and is very easy to use, so do give it a try if you’re interested in digital coins.