There’s no doubt that cryptocurrencies are all the rage right now. But if you’re like most people, you don’t have the time or knowledge to trade them yourself. That’s where Robinhood comes in.
With their easy-to-use app, you can start trading cryptocurrencies without having to worry about getting scammed or losing money. And the best part is, there’s no minimum account balance required! So what are you waiting for? Start trading today!
What cryptocurrencies are available on Robinhood
Robinhood is a commission-free trading platform that allows users to buy and sell cryptocurrencies. As of January 2021, Robinhood supports seven cryptocurrencies: Bitcoin,
- Ethereum
- Dogecoin
- Litecoin
- Bitcoin Cash
- Ethereum Classic
- Bitcoin SV
Robinhood requires users to verify their identity before they can trade cryptocurrencies. Once verified, users can buy, sell, or hold cryptocurrencies directly within their Robinhood account.
For most cryptocurrencies, Robinhood only supports market orders, which means that users will buy or sell at the current market price. However, for Bitcoin and Ethereum, Robinhood also supports limit orders, which allow users to set a specific price at which they want to buy or sell. Robinhood does not currently support any cryptocurrency trading pairs (e.g. BTC/ETH), so users can only trade cryptocurrencies against USD.
What are the fees associated with trading cryptocurrencies on Robinhood
Commission-free! That’s right, Robinhood does not charge any commissions or fees for buying, selling, or holding cryptocurrencies. However, users should be aware that there are other fees to consider, such as network fees (e.g. blockchain transaction fees) and spread fees (the difference between the bid and ask price).
Network fees are generally incurred when users make a withdrawal from their Robinhood account to an external cryptocurrency wallet. Spread fees are generally negligible for major cryptocurrencies like Bitcoin and Ethereum, but can be more significant for smaller cryptocurrencies like Litecoin and Bitcoin Cash.
What are the risks of trading cryptocurrencies on Robinhood
Cryptocurrencies are a highly volatile asset class, which means that their prices can fluctuate rapidly and unpredictably. This makes them a risky investment, but also provides the opportunity for large profits if timed correctly. Another risk to consider is the possibility of theft or fraud.
Unlike traditional banks or brokerage firms, cryptocurrency exchanges are not regulated by the government, which means that there is no protection if your coins are stolen or you are scammed out of your money. That’s why it’s important to only trade on reputable exchanges like Robinhood, and to keep your coins in a secure wallet when not trading.
How to make money trading cryptocurrencies
The key to making money trading cryptocurrencies is to find a strategy that works for you and stick with it. Some people prefer to buy and hold coins for the long term, while others trade frequently in hopes of making quick profits. There is no right or wrong approach, but it’s important to have a plan and stick to it. It’s also important to diversify your portfolio by investing in a variety of different coins. This will help mitigate the risk of losses if the price of one coin falls while the others rise.
Tips for beginners cryptocurrency traders
If you’re new to cryptocurrency trading, here are a few tips to get you started:
- Do your research. Before investing in any asset, it’s important to understand how it works and what factors can affect its price. With cryptocurrencies, this means understanding the underlying blockchain technology as well as the economic and political factors that can impact the price of specific coins.
- Start small. When you’re first starting out, it’s a good idea to invest a small amount of money so that you can learn the ropes without putting your entire portfolio at risk.
- Be patient. Cryptocurrencies can be volatile, which means that prices can fluctuate wildly in a short period of time. Don’t get discouraged if you don’t see immediate results, and don’t be tempted to invest more money than you can afford to lose.