Robinhood App will Not Charge Users who Trade Crypto
The Robinhood App, which lets its users engage in free stock trading, has decided to let people trade crypto for free as well. The company’s founders feel that people are overpaying for crypto-trading and investing, and they shouldn’t have to. Scheduled to be launched sometime next month, the app will let users buy and sell bitcoin and ethereum. Currently, Coinbase transaction costs range between 1.5-4%. According to Vlad Tenev, co-founder of Robinhood, the company is not yet planning to generate any profits from its crypto service. It seems like this might be a move to encourage more people to use the company’s trading app, which already has around 3 million users and over $100 billion transacted via its app.
Given the volatile nature of cryptocurrencies, the creators of the Robinhood app intend to offer their customers the option to search for the lowest price on several crypto-exchanges. This is after they’ve committed to a buy or sell order. The first version of the crypto-trading platform will only allows users in California, New Hampshire, Missouri, Massachusetts, and Montana to access the app. It’s quite possible that the company is testing its service within a limited geographical area. Based on the results, the company might extend its service across the US and even internationally.
A Slow and Steady Approach
Baiju Prafulkumar Bhatt, co-founder at Robinhood, says his company’s crypto services should be accessible to the majority of US consumers during the first half of 2018. However, he also indicated that the services would be introduced “slowly” and “steadily”. The company’s goal is to make make crypto more “stable” and “reliable”, according to Mr. Bhatt. Furthermore, Mr. Bhatt also mentioned that his company will make sure that the app is in compliance with cryptocurrency regulations.
In addition to letting its users trade BTC or ETH, the Robinhood App will help users stay up-to-date with news and pricing information regarding 14 other cryptocurrencies. These cryptos will include Monero, Zcash, Ripple, Litecoin, and Dogecoin. By using its crypto app, the company hopes to guide the newcomers to the world of crypto. It would also like to see more crypto investors take interest in trading equities and options.
Bringing Back the 1980s Style
The Robinhood crypto app will try to bring back the 1980s retro design. For those who are old enough to remember “Blade Runner” and synthwave, the app’s user interface might stir up feelings of nostalgia, according to company co-founder Mr. Bhatt. This seems like a clever marketing tactic, because nostalgic feelings can trigger powerful emotions that can make users feel more connected with the app. However, the app will still have to offer quality crypto-trading services, because it can’t hope to keep people interested only by offering a cool looking UI.