Robinhood Review – What You Should Know About Robinhood’s Crypto Wallets

The crypto-investing platform Robinhood allows you to trade stocks and crypto simultaneously. Some have criticized the service for making trading too game-like, promoting active trading and volatility rather than long-term investment growth. However, adopting a game-like mentality may not be the best approach to investing in crypto, and the service’s low commission rates may make it a better option for those who are new to the space.

Robinhood Review

Although most US brokers still do not offer their own crypto wallets, Robinhood will start testing these in the coming weeks with an “alpha” group. The company will take feedback from the alpha group publicly once the product is ready. By the end of 2021, the service will make its crypto wallets available to the general public. Eventually, it will be possible to open a crypto account using the platform. But before you can start using it, you should check out a few things.

Firstly, the platform will limit the number of market orders you can place. Most platforms allow 1% to 5% market orders. Once you’ve reached the maximum amount, you can sell or buy. Just be aware that market data is not real-time. Moreover, it’s not necessary to invest all of your money in the same exchange, as you may find it difficult to track it accurately. Hence, it’s important to learn about how to use crypto wallets.

The Robinhood platform will allow you to trade various assets through a single interface. However, if you want to trade only crypto, you should register with Coinbase. The site offers a digital wallet with 51 coins, and it can support trading in both crypto and stocks. So, before you buy a crypto, make sure you know how to use it properly. And don’t forget to try out the demo version of the software.

Robinhood Review

Moreover, Robinhood has also decided to make its wallets custodial. That means that the platform will be responsible for the keys used to unlock your wallet. This means that you’ll be giving up some control, but the benefit of it is that it removes a lot of responsibility from you. You can, however, move the crypto you bought through the platform into a different wallet. It’s essential that you use a cryptocurrency wallet with a secure online wallet.

To keep your cryptocurrency safe, you should use a custodial wallet. Unlike other types of wallets, this service charges a fee for order flow. This means that if you sell cryptocurrency on the platform, you’ll need to transfer the funds to your own private address. This way, you can move your crypto into another wallet. This is a huge advantage for Robinhood because it allows you to move it from one wallet to another with ease.

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