Robinhood Is Adding Commission-Free Cryptocurrency Tradingin News
According to Reuters, online brokerage startup, Robinhood Financial LLC plans to launch commission-free cryptocurrency trading riding a wave of interest from retail investors for the new asset class. Starting in February, Robinhood will let customers buy bitcoin, Ripple, and 15 other cryptocurrencies using the same streamlined, no-commission approach it offers for stocks. The product should be popular among Robinhood’s young customer base. According to a recent survey, more than half of Bitcoin holders are between the ages of 18 to 34. Robinhood said its average customer is 30. In announcing the news on Thursday, Robinhood said users will immediately be able to track market data for the 16 cryptocurrencies—which also include the likes of Litecoin, Ethereum, and Ripple—and to read the crypto news and set price alerts. The service will initially be available in California, Massachusetts, Missouri, Montana, and New Hampshire, and will become available to other states in coming months. The list of cryptocurrencies largely corresponds with those with the biggest market cap and also includes Bitcoin; Ethereum; Bitcoin Cash; Litecoin; Ripple; Ethereum Classic; Zcash; Monero; Dash; Stellar; Qtum; Bitcoin Gold; OmiseGo; NEO; Lisk; Dogecoin.
“We’re planning to operate this business on a break-even basis and we don’t plan to profit from it for the foreseeable future,” says Robinhood co-founder Vlad Tenev. “The value of Robinhood Crypto is in growing our customer base and better serving our existing customers.”Robinhood will broker customers’ cryptocurrency trades through existing exchanges and market-makers, Tenev said, though he would not identify which ones. Prices will reflect the fees Robinhood must pay those third-parties, a spokesman said. As cryptocurrencies have gained popular attention, prices have soared. A single bitcoin is now worth more than $11,000, compared with $900 a year ago, while the price of ether has spiked to $1000 from $10 over the same period of time. Will Robinhood become more popular than Coinbase? Share your thoughts in the comments section below.
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