Is Cryptocurrency Safe On Robinhood? – A Platform Review
Many investors, especially the young ones, look at cryptocurrency as a potential investment. Yet, several platforms offer services for crypto, and one of these is Robinhood. Is cryptocurrency safe on Robinhood? Is it reliable, credible, and provides the best features for the money? Read on to learn more.
Get to Know the Robinhood Platform
Robinhood is a brokerage company offering investors services, such as trading cryptocurrency. The Robinhood platform is proud to promote that the app charges no fees when you trade with it. You can open an investing account with the lowest initial capital to start your cryptocurrency trading journey. The platform features are easy to understand and navigate, making it an excellent medium for novice traders. However, there are questions like, “Is cryptocurrency safe on Robinhood?” “Is Robinhood app legit?” The answer is yes. It is legit, safe, and most features are free.
What Does It Offer for Novice Traders?
Just like other platforms, Robinhood provides mobile updates for your trades. It gives you information about your cryptocurrency watchlist and your possessions' current price. The Robinhood app has provided all the basics of trading. Millions of traders choose it for its ease and efficient application features.
Issues on Robinhood
Aside from its being free and simple trading features, why does Robinhood get negative feedback from users? That’s why questions arise regarding their reliability and credibility. Is cryptocurrency safe on Robinhood? Can I entrust my hard-earned money with this broker? Here are the downsides to why many investors or traders do not choose this app as their platform:
No Wallet for Your Crypto
A wallet, just like our physical wallet of cash, stores the digital asset in one place. It contains information on the digital currency entered and released in the cryptocurrency account. With this wallet, you can withdraw your crypto and transfer it to other accounts.
In this case, Robinhood does not have a cryptocurrency wallet with its app. So, how would you trade? In trading cryptocurrency with Robinhood, you are buying and selling IOUs; this means you are not the actual asset you buy or sell. The IOUs are legal proofs that you are entitled to the rights to acquire such an asset.
So why not own the crypto itself? It depends upon your goal in entering into cryptocurrency. If you trade for the sake of buying and selling digital assets for capital gains, this idea is not that bad. But when you invest for future value in crypto, Robinhood is not the best choice. If you need to withdraw your account, you can sell your crypto and transfer it to your bank account.
You Can’t Do Day Trading With It
Not at all? No, it only means that you need a substantial amount of initial deposit to day trade. The features also do not support trading for pro. You might get upset if you want to have advanced settings, but Robinhood cannot provide such a need.
Is cryptocurrency safe on Robinhood? This time, it’s no. Robinhood is not the best application for day trading for two reasons. First, it requires immense initial capital before you can day trade. The second thing is that the platform is simple and easy to use, which means it does not support your professional trading needs.
Customer Support Is Not Excellent
Is cryptocurrency safe on Robinhood? It is still a no; why? You cannot directly call the Robinhood customer service line because it does not provide a cellular phone number but an email. We know trading needs fast services. Imagine yourself trading, and your platform gets into trouble, and you cannot call your broker immediately, and you need to wait for a reply on the email that you are not sure read by the customer support. It does not even support live chats for immediate actions to your concerns. Do you want to take this risk?
Provides Cash-Management Services
It’s a unique feature that Robinhood offers services as the banks do. Do you doubt its credibility? Well, Robinhood is registered in the Securities and Exchange Commission and other financial regulatory institutions. The bad thing is that it does not yield higher interest than other financial institutions offering the same service.
Robinhood Over-All Impression
Is cryptocurrency safe on Robinhood? Well, it’s a yes with the following qualifications. The best thing about Robinhood is that it charges no transaction fees. The basic features are ideal for beginners in the market and are easy to navigate and understand.
As for the professional traders who are deeply in the market, they don’t choose this app. Customer support is vital for professional traders such as the scalpers wherein they buy possessions for this hour and sell their assets for the next few hours or minutes interval of their trades. Robinhood app is not for pros.
With the unbiased information provided above, you can now answer the question, “Is cryptocurrency safe on Robinhood?” No doubt, this app’s users reach millions because its features are easy to use and understand. It is one thing that is necessary for trading. How can you trade when you don’t understand your brokerage platform's elements? Yet, the app's simplicity comes with the unreliability as to its customer support system. That simplicity comes with the disadvantages of using those who are deeply in the market. Over-all, Robinhood is a safe application. Learn more about cryptocurrencies here!
UPDATED April 4, 2021
By: Paulette Dane
Robinhood is well known because of its good quality service and a dedicated app because of its transparency.