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Robinhood Will Soon Be Offering Zero-Fee Cryptocurrency Trading
Capital Markets, FinTech
Robinhood will be offering zero-fee crytocurrency trading on its app beginning in February, the company announced on Thursday.
According to a blog post from the company, Robinhood will allow users to buy and sell Bitcoin and Ethereum – but no other cryptocurrencies – next month. However, starting on Thursday users are able to add 16 cryptocurrencies to their watchlist in order to “monitor market data, read cryptocurrencies news, and create custom price alerts.”
Here are those 16 cryptocurrencies:
- Bitcoin Cash
- Ethereum Classic
- Bitcoin Gold
Meanwhile, Robinhood says that trading of Bitcoin and Ethereum “will be released gradually in waves.” It will be limited to residents in California, Massachusetts, Missouri, Montana, and New Hampshire at first, with plans to open it up to more states soon.
“We believe that cryptocurrencies have the potential to fundamentally reorganize the way money works from the ground up, putting power previously held by financial institutions directly in the hands of the people,” the company said in its blog post.
TechCrunch notes that Robinhood’s no-fee approach means the company is “essentially using crypto trading as a loss leader instead of its primary business like Coinbase and other apps,” which could allow the company to “substantially expand” its user base beyond the 3 million it currently has. Coinbase charges 1.5 to 4 percent fees in the US for crypto trading.