Over the past couple years many platforms have been taken by the growing popularity of cryptocurrency. The latest platform to be pulled into the world of virtual currencies is the trading app Robinhood. The app announced today that users will now be able to view the latest news, prices and set alerts for up to sixteen cryptocurrencies.
That is only the beginning. Starting in February, Robinhood will begin offering trade services of ethereum and bitcoin. This new trade offering service will start small and only be available to users in California, Montana, Missouri, New Hampshire and Massachusetts. The most amazing part about this app, is that users will be able to purchase cryptocurrencies without having to deal with any commission charges. Considering that major exchanges charge up to 4% in fees, this is actually a major development. The app works by simply providing the users with an estimated price when it gets an order from them. In an attempt to find the price that is closest to what the user was offered, the app searches through numerous exchanges and trading venues. Keeping in mind that cryptocurrencies are always rapidly changing, the app takes provisions via a collar system. It wraps around an estimated price and immediately informs users when their currency reaches a buy or sell order price.
Vlad Tenev, the co-owner of Robinhood informed techcrunch during an interview that they intend on operating its cryptocurrency business on a breakeven basis as to attract more customers. The company later posted on their website this message, “We believe that cryptocurrencies have the potential to fundamentally reorganize the way money works from the ground up putting power previously held by financial institutions, directly into the hands of people,”
Given how popular cryptocurrency has become, Robinhood’s introduction into the world of currencies might prove to be one of the best decisions they’ve ever made.