Robinhood, a finance application that allows for commission-free buying and selling in the stock market; Likewise, it announced that it will start to provide commission-free crypto money trading services.

Compared to the 1.5-4 percent commissions of CoinBase, the number one crypto currency exchange in the USA; Robinhood could pose a threat to CoinBase.

The company, which plans to start its first transactions in February, will first be active only in Bitcoin and Ethereum trading. However, there will be features such as price tracking and price alerts for 14 cryptocurrencies, including Litecoin and Ripple.

Vlad Tenev, one of the founding partners of Robinhood, stated that they are not planning to make a profit anytime soon, and the value of the company comes from the increasing number of users and users who are getting better service.

 

Early investors of cryptocurrency trading ventures have always been questioned. But Robinhood, completing its fifth year, raised $ 176 million in funding and raised its value to $ 1.3 billion, with the support of many major investors, including Andreeessen Horowitz. Robinhood's original plan seems to be to connect crypto investors with futures contracts. In addition, users can receive funds to be used in transactions between $ 1,000-50,000 by paying a dues between 6-200 dollars.

 

You can instantly transfer $ 1000 in a bank account linked to Robinhood — more for Gold memberships. Immediate transfer of money to the account eliminates the losses caused by delays in small transactions. When you place a buy or sell order, the application takes prices from many crypto money exchanges and brings you the best price as an estimate. It enables you to make better purchases and sales every time by applying economic models and scales over time. If an order you have given cannot be fulfilled (reasons such as very rapid rise-fall, little depth), it expects it to come back to that price or informs you of the situation. In addition to these features, you can place limited orders.

Cryptocurrencies supported by the application: Bitcoin, Ethereum, Bitcoin-Cash, Litecoin, Ripple, Ethereum-Classic, Zcash, Monero, Dash, Stellar, Qtum, BitcoinGold, NEO, Lisk and DogeCoin.

 

For now, the app will serve in the US pilot states of California, Massachusetts, Misuri, Montana and New Hempshire. Later, the service area will expand. Stating that they only support the trade of these two for now because they believe that Bitcoin and Ethereum are the most mature cryptocurrencies in the cryptocurrency ecosystem, Tenev added that they are continuing to include other cryptocurrencies to the platform in the future.

 

Along with the newly arrived crypto trading features, Robinhood has also started work on a series of security measures infrastructure. In addition to integration with two-stage approval applications, integration with identification applications is also planned. Cryptocurrency exchanges have recently become the number one target of hackers, it seems that it has added itself to the target board with this initiative in Robihood.

 

Because if there is an incident such as hacking or theft of funds from individual customers, the company may destroy its reputation as a fitech. But the demand for cryptocurrency exchanges is great. The current hundred thousand users are regularly trying to find out whether they can buy or sell crypto within the application. In a survey they conducted, 95 percent of their users state that they will definitely use it when it comes to the crypto exchange feature. In fact, Cobinhood, which created a rival brand with its similarity to their names, managed to collect 10 million dollars with the ICO they issued.

 

Thanks to the systems developed by the engineering teams, the company, which allows the purchase and sale of stocks without commission, is of course preferred over applications such as Scottrade and E * trade, which receive $ 6 per transaction for marketing expenses and operating expenses. It reached $ 100 billion in Robinhood transactions, and it allowed its users to spend $ 1 billion less in total by not charging transaction fees.


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