Current Robinhood users can only buy and sell crypto, but that is set to change soon.
Robin Hood Markets, the retail trading has officially launched a beta version of its digital wallet. A total number of 1,000 clients were selected from its list to test and report any irregularities. The beta version of the Bitcoin Cryptocurrency Source: dailynewshungary.com https://dailynewshungary.com/how-to-make-money-from-the-bitcoin-cryptocurrency/, which was just launched has a waitlist of over 1.6 million people.
The crypto wallets Beta program is Robinhood’s second primary landmark, and it will allow clients to receive and send crypto to external crypto wallets from Robinhood for the very first time, fully connecting crypto holders on Robinhood to the larger blockchain ecosystem. This implies that users you can now accumulate their tokens into a single account to making it easier to monitor their portfolio, as well as transfer supported crypto assets into their Robinhood account to trade at zero commission.
They began distributing crypto wallets to 1,000 clients at the top of the wallet waitlist, and they plan to increase the number of testers in the program to 10,000 by March before distributing to the rest of the WenWallets waitlist. Robinhood’s core responsibilities are safety and accessibility, which is why they are methodically and consistently rolling out wallets and have established world-class security integrations to oversee all transactions. This also helps to make sure customers can both safely transfer and invest their crypto in the market.
The wallet’s alpha test started in late 2021, with the first transaction transferring 420.69 DOGE. Robinhood announced to the public that, based on feedback from beta testers, it will deliver a unique Robinhood experience through the wallets, as well as provide education, security, and clarity on gas fees. The crypto wallet is unlikely to be like traditional cryptocurrency wallets. Although Robinhood may still retain control over user keys, it now allows them to transfer assets off the platform.
The beta version for the digital wallets by Robinhood comes at a period when the fortunes of cryptocurrencies are changing. They thrived in the risky environment created by the pandemic, reaching new highs as investors were flooded with stimulus funds and interest rates close to near zero. According to CEO Tenev, the number of the account on Robinhood has nearly with revenue also reaching an all-time high due to a “huge investment in crypto.” However, 2022 began with a dip, which impacted the opening of accounts at different cryptocurrency brokerages.
Following the report of an international broker comparison website, BrokerChooser, brokerages have experienced a decrease in the number of account openings by 73% in the third quarter of 2021. Crypto Analyst Adam Nasli also affirmed that Robinhood, in the third quarter of 2021 had an 88% decrease in account openings.
According to Adam, Robinhood introducing a digital wallet on its platform could bridge the gap between cryptocurrency exchanges and the app, which counts for a large percentage of the bulk trading executed in the crypto markets. Nasli adding to what was already stated affirmed that the importance of crypto wallets to customers annoy be overemphasized but most U.S. brokers fail to make it available. This move of offering a crypto wallet can have a positive impact on Robinhood’s account opening”
According to the company, customers will be exposed to a feature that will enable them calculate the amount of dollar in crypto to receive sent. A daily limit of $3,000 im total withdrawal is sanctioned for Beta testers. A maximum of 10 transactions per day and a 2FA authentication is compelled on the Beta testers. Robinhood currently supports seven cryptocurrencies: Bitcoin, Ethereum, Dogecoin, Litecoin, Bitcoin Cash, Bitcoin SV, and Ethereum Classic. While Robinhood has plans to expand its crypto operations, especially after seeing a huge rise in crypto users in 2021, it has not disclosed which coin(s) it will add to its exchange. A lot of people in the Shiba Inu community have been speculating that SHIB will soon be listed on Robinhood after the cryptocurrency wallet releases. However, this is just speculation and should be taken lightly.
The new wallet feature is bound to increase the number of users of the trading platform who could only buy and sell before now and also increase the competitive edge of Robinhood, as already shown by the beta testing waiting list. There is an increasing number of investors venturing into the crypto space and Robinhood being a disruptor broker and offering zero commission for stocks, options and crypto is ideal for the new, young investors who are looking to get their skin in the game.
