Does Robinhood Have Crypto Wallet? - History, Pros, And Cons
If you are familiar with English folklore, you have read Robinhood and its slogan, "steal from the rich, give to the poor'. However, for Robinhood in cryptocurrency, there aren't a lot of stealing going on but more on exchanging. Robinhood is a popular tool used to invest and trade cryptocurrency. But does Robinhood have crypto wallet? Read this article to find out!
Robinhood: A Short History
Robinhood crypto wallet is a little bit unconventional because it did not start as a crypto wallet nor as a cryptocurrency exchange platform. Robinhood started as a stock market exchange. Now, that is a little far from the crypto world, right? So when you asked the question, does Robinhood have crypto wallet, some people may get confused as most of them would think of Robinhood as a stock market exchange, not something in the crypto world.
Robinhood was created by Vlad and Baiju, two friends who were roommates at Stanford, who started their own finance companies after graduating. These two men noticed a huge wall that makes it difficult for people to get into stock market exchanges. They decided to do something about it; thus, Robinhood was born. Eventually, the brand managed to enter the crypto world and offered its user an interesting alternative, at least for crypto-wallets.
So, does robinhood have crypto wallet? The definite answer to that question is yes, although it is not that popular yet in the crypto world. Keep on reading to know more about Robinhood crypto wallet.
Robinhood Crypto Wallet: Pros
When you are into cryptocurrencies and want to know more about it, it is vital to learn all the nitty-gritty details such as this one. Knowing does Robinhood have crypto wallet can be something you will need in the future that can help you become a better trader in the crypto world.
1 . Robinhood's Built-in Exchange Features
One of the positive sides of Robinhood is that traders can trade and exchange cryptocurrencies easily. This aspect is usually considered the main strength of online wallets. Because they are always connected to an exchange, traders do not have to worry about dealing with the prolonged and challenging processes of connecting hardware wallets to the exchange to make a trade. If you are constantly trading your crypto coins, this is going to be most beneficial for you. This means Robinhood wallet is ideal for short-term traders as cryptos will always be located on an exchange making it easy to perform trades quickly and effectively, avoiding the possibility of missing a great deal.
2. Supports All of the Main Cryptocurrencies
One thing that traders notices first with Robinhood crypto wallet is it supports all main cryptocurrency. These are Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, and Dogecoin. This feature makes Robinhood wallet very attractive, especially for traders looking to get into the crypto world and want to access only the most well-known coins in the crypto world.
3. Very Easy to Use
If you have read reviews of Robinhood Bitcoin wallet users, its most talked-about aspect is that it is user-friendly and super easy to use. Many users point out that the wallet's interface is quite simple as it does not overload its users with a wide range of complex features and keep things to a minimum instead.
4. Advanced Security Features
Many do not trust online wallets, especially those that are based on exchanges. However, the Robinhood crypto wallet comes with the right security and safety features. Those who are using the app version of the platform can turn on it'd two-factor authentication while adding some custom PIN codes to ensure better protection standards.
Robinhood Crypto Wallet: Cons
There are always disadvantages when it comes to almost everything. Knowing does Robinhood have crypto wallet is not all about the pros, but also its cons.
1. A Potentially Unsecure Cryptocurrency Wallet
If you are looking for a cryptocurrency wallet for personal needs, there are four types of wallet that you can choose from: online wallet, software wallet, hardware wallet, and paper wallet.
Online wallets are the least secure as they can easily be hacked and prone to cyberattacks. Unfortunately, Robinhood crypto wallet is online-based, being located on an exchange platform. This is why it is suggested to use online wallets during an exchange or a transaction. After a deal or transaction, the funds should be transferred to safer storage means, such as a hardware wallet.
2. Transfers Require Verification
Verification is necessary in almost all transactions, in and out of the crypto world. If you use the Robinhood platform, every time you want to transfer crypto coins to a different wallet to exchange crypto coins to fiat money, you will need to verify your identity. However, the disadvantage is that verifying one's identity will eliminate all anonymity that the user wants to preserve, and it will be tied down to the exchange platform in question.
3. Trustworthiness Issues
Robinhood was established in 2013; however, Robinhood crypto wallet came into existence in 2018. This means that it is still a very new platform, so there are still some issues and concerns within the community regarding its trustworthiness. Most people still prefer well-known and established exchanges, such as Binance or Coinbase. But, in the case of Robinhood crypto wallet, for the short time that it exists, it hasn't experienced any notable to serious security issues and is yet to be breached by hackers.
It was mentioned earlier in this article that the Robinhood project has been known to have a fee-less approach towards exchanges, and they claim that there are no fees associated with using the wallet. But, some research of the user agreement and terms of Robinhood service showed that some sections within the documents could be considered "hidden fees," specifically the section that talks about the "pass-on fees." These were not charged to the users directly, but there are speculations that the platform might increase some prices of certain cryptocurrency purchases, which sets a fee, somehow.
This is not a specific statement, though, but more of a warning about a possible situation. And it could be an actual situation, but it is still open for discussion as there does not seem to be any proof that Robinhood certainly does this.
So, if you are asking, does Robinhood have crypto wallet? The answer is yes. If you ask if it is safe or not, well, there are better and safer options available than Robinhood. If you are looking for something easy to use and a beginner-friendly wallet, this could be a good option. It is really up to the user what type of crypto wallet they'll use, although it is vital to consider some things such as price and security. Learn more about crypto wallets here!
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